P&L (Profit and Loss)

A Profit and Loss (P&L) statement, also known as an income statement, shows a business’s financial performance over a specific period. It summarizes revenue (money earned) and expenses (money spent) to determine if the company made a profit or a loss. If revenue exceeds expenses, it’s a profit; if expenses are higher, it’s a loss. It helps owners and stakeholders understand how well the business is doing financially, guiding decisions on growth, cost management, and investments. Essentially, it provides a clear snapshot of the company’s financial health during that period.