How to Read Your P&L: A Guide to Financial Health for Freight Brokers
Take control of your brokerage’s financial performance.
Download the P&L template to track revenue and operating costs with clarity, reduce hidden inefficiencies, and strengthen margin over time.
By downloading this guide, you agree to Truckstop’s Terms and Conditions and Privacy Policy.
A P&L summarizes the revenue your brokerage earned and the expenses it paid during a specific period. For brokers, the most important piece is gross margin, since the difference between customer rates and carrier pay is the foundation of your profitability.
A clear P&L helps you track margin, monitor expenses, and understand how your operation is performing month after month. It also supports forecasting, budgeting, and planning for staffing or technology needs throughout the year.
A clear P&L helps you:
- Track revenue and margin over time
- Understand your biggest expenses
- Spot cost increases before they become problems
- Compare performance month over month
- Forecast cash needs and create budgets
- Plan staffing, pricing, and technology investments for the upcoming year
What should be included in a P&L statement for freight brokerages?
A P&L is most useful when it clearly reflects how your brokerage earns money and where that money goes. Because brokers operate on margin, your statement should begin by showing the relationship between what your customers pay and what you pay carriers. This makes it easier to see how each load contributes to your overall profitability.
The first part of your P&L should show:
- Gross revenue – what the shipper paid
- Carrier cost – what you paid the carrier
- Gross margin – gross revenue minus carrier cost
These numbers create the foundation for everything else in your P&L. Once you know how much margin your business generated, the next step is to outline the operating expenses that support your day-to-day operations. Common expenses include:
- Payroll and commissions
- Software and subscription costs
- Insurance
- Office expenses
- Compliance and permitting fees
- Financing or payment-related fees
- Unexpected losses from claims, fraud, or unpaid invoices
When your P&L includes all of these pieces, you have a clear picture of how money is moving through your brokerage.
What your P&L tells you about your business health
Once your P&L is organized, the real value comes from reviewing it consistently and watching how the numbers change over time. One month of results shows where you ended up, but several months of data reveal the patterns that shape your financial health.
Gross margin
Start by looking at your gross margin. If margin is improving, it may reflect strong pricing, controlled carrier costs, or a healthier freight mix. If it’s tightening, it may be the result of higher carrier rates, underpriced lanes, or softer demand. Comparing your results with market data or a pricing tool helps you understand whether these changes are internal or market-driven.
Operating expenses
Operating expenses are the next area to pay attention to. Even small shifts in payroll, insurance, software, or claims can affect profitability over time. Reviewing expenses monthly makes it easier to see where costs are rising and where adjustments may be needed.
Seasonality
Your P&L also highlights seasonality. Many brokers see predictable peaks and slower periods throughout the year. Comparing year-over-year results helps you plan staffing, adjust budgets, and prepare for quieter months with more certainty.
Cash flow
Cash flow shows up clearly in your P&L as well. Slow-paying customers can put pressure on your operation even when revenue looks strong. Tracking payment timing helps you see when cash flow may tighten and whether tools like quick pay or factoring could help keep payments moving on schedule.
Trends
When you look at these trends together — margin, expenses, seasonality, and cash flow timing — your P&L becomes a diagnostic tool. It shows what’s working, what needs attention, and where you may want to adjust your strategy as you plan for 2026.
Don’t let small financial issues grow into costly problems.
Get the P&L guide to monitor cash flow, catch shrinking margins early, and make adjustments that protect your bottom line.
By downloading this guide, you agree to Truckstop’s Terms and Conditions and Privacy Policy.
Putting your P&L to work
A P&L gives you a clear view of how your brokerage is performing. It shows where revenue is growing, where expenses are shifting, and how your margin responds to changes in the market. As you plan for 2026, this level of visibility helps you make informed decisions about pricing, staffing, technology, and cash flow.
Keeping your numbers organized makes updating your P&L much easier. With Denim by Truckstop, you can access financial reports and dashboards that show revenue, carrier payments, customer payment timing, and financing activity in one place. These insights give you a more accurate picture of your financial health throughout the year.
To get started, download the P&L template included with this guide and begin tracking your revenue, costs, and trends month over month. The more consistently you update it, the more value you’ll get from it.
If you want to learn how factoring through Denim by Truckstop can support your cash flow and help you maintain a healthy financial foundation, schedule a demo with our team.
Sign up today.
Find high-quality loads fast, get higher rates on every haul, and access tools that make your job easier at every turn.
.png){kind=icon}
.png){kind=icon}
