Profit And Loss (P/L)

• Financial Statement
• Revenue
• Expenses

A Profit and Loss (P/L) statement is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year, to show a company’s net income or loss.

Problem it addresses

Businesses need to understand their financial performance to make informed decisions. Without a clear view of revenues versus expenses, it’s challenging to identify areas of strength and weakness.

How it helps

The P/L statement provides a clear overview of financial health, showing where a business is making money and where it’s spending. This visibility enables businesses to manage their finances more effectively, identify trends, and implement strategies to improve profitability.