P&L Account

Fajr Reminders - Mahmood Habib Masjid and Islamic Center

⚠️ AI-Generated Content: This transcription was automatically generated using AI. My brothers and sisters, in any business, when you do the accounting for your business, there is a basic fundamental document which many of you are probably using. If you are not using, you should use it. And we call that the P and L account, profit and loss account, P and L account. Ideally this is a document, it's a calculation which is done at the end of each day. So today's sale is so much. In this sale I made this much profit and this much loss. And of course it is done for your quarterly reviews, it is done for your annual tax calculation or whatever. P and L account. This P and L account is probably the most critical document or measurement which will tell you the health of a business. So if I was buying a business I would say show me your P and L account. And then I will have an idea of whether this business is how it's doing. Is it healthy, sick or not? The reason I'm saying this is because this is exactly how our life also works. Whether we calculate it or not, at the end of the day the angels which are sitting here, the Kiram and Kathibin, they calculate a P and L account, a profit and loss account. Profit from here, loss from here, their account. And when we meet Allah subhanahu wa ta'ala, when we go into our graves and when we are before Allah, subhanahu wa ta'ala on the day of judgment, there will be our P and L account, profit and loss. So one thing I advise you and I advise myself, let us do our own accounting before the accounting is done for us because it will be done one day. As I said earlier, the Raja Rana said, make your hisaab before your hisaab is made. Do your own hisaab, do your own accounting before it is done for you. So sometimes when I teach the leadership course, I teach five-day residential program called Leadership Excellence Course. We begin with this. The first thing I tell people is, hmm, you give them a sheet of paper or draw a line down the middle, on the left, right, loss and profit and I tell them now write down according to you, in your memory think about it and say what will you put in the profit column, what will you put in the loss column, what will you put. So in the profit column will go everything which is for which we ask Allah for a reward. So all your ibadah, all acts of worship, all acts of charity, kindness, birra lalideen, being good to your parents, right, good to the neighbors, whatever. Everything which is good, which you expect Allah subhanahu wa ta'ala, you ask Allah subhanahu wa ta'ala for reward to reward you. So salaah, saham, zakat, hajj, umrah, tilatul huran, zikrullah, salaah al nabi, everything. And on the last side are all the sins. So what did we do? Did we lie, did we cheat, did we not pray when we should have prayed, did we not give zakat when we needed to give zakat, did you greeba, namima, you know, backbiting, slander and so on and so on, whatever we do. Well have mercy on us. And then you total up and see how it looks. Does it look good or does it look bad because even if you cancel one against the other, what is left? In that process also remember that both for the good and the bad, there are deeds which are individual for which you get a reward. For example we prayed salaat al risha, alhamdulillah we ask Allah subhanahu wa ta'ala for reward for salaat al risha, this is that. There are other deeds for which you get reward not only for that deed but in the future it will earn for you. But again in financial language we call earning assets. So there are dead assets and there are earning assets. If I buy a bar of gold for $300,000, this bar of gold is worth $300,000, it sits there and some price fluctuation and so on, it will retain its value but other than that it doesn't earn anything specifically. But I take the same $300,000 and I put it into a commercial building, then it's earning for me the building value going up and down that's one but also every month I'm ge...