Finance
Profit and loss statement
Also known as P&L, Income statement
A profit and loss statement reports revenue, costs and expenses over a period, showing whether a business made a profit or a loss. It is one of the three core financial statements, alongside the balance sheet and cash flow statement.
In plain terms: Did the business make money over this period?
Why it matters
The statement founders read and the one that least often predicts a crisis. A profitable company with slow-paying clients and fast-arriving payroll can fail while the P&L looks healthy.
Read the full guideBookkeeping