Glossary › Profit & Loss (P&L)
Profit & Loss (P&L)
A report of revenue and expenses over a period, ending in net profit or loss. Also called an income statement.
The profit and loss statement (income statement) summarises revenue earned and expenses incurred over a period — a month, quarter, or year — ending with net profit or loss.
It answers the fundamental question: did the business make money? Reviewing the P&L monthly catches cost blowouts and revenue dips while there's still time to act.
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