Profit & Loss Statement

A financial report showing revenue, costs, and expenses over a period, revealing whether a business is profitable. Also called an income statement or P&L.

The P&L is your business scorecard. Reviewing it monthly tells you where money is coming from and going, which product lines are profitable, and whether expenses are growing sustainably.

A founder reviews her monthly P&L: Revenue £12,400, COGS £3,100, expenses £4,200, net profit £5,100. She notices ad spend doubled, profitable this month but unsustainable if revenue dips.