A financial statement that summarizes a company's revenues, costs, and expenses over a specific period to show net profit or loss.
The P&L statement (also called Income Statement) is one of three core financial statements. It shows the flow of money through the business over a period (month, quarter, year), unlike the balance sheet which is a snapshot. Key sections include Revenue, COGS, Gross Profit, Operating Expenses, Operating Profit, Other Income/Expenses, and Net Profit.
A monthly P&L shows: Sales Revenue ₹8,00,000 − COGS ₹3,20,000 = Gross Profit ₹4,80,000 − Operating Expenses ₹2,50,000 = Operating Profit ₹2,30,000 − Tax ₹57,500 = Net Profit ₹1,72,500.
Ensures accurate financial reporting and record-keeping
Helps maintain regulatory and tax compliance
Enables better-informed business decisions
Improves operational efficiency and cash flow management
A P&L shows financial performance over a PERIOD (revenues and expenses). A Balance Sheet shows financial position at a POINT in time (assets, liabilities, equity). Think of P&L as a movie and Balance Sheet as a photograph.
Monthly at minimum for effective business management. Laabam.One generates real-time P&L statements so you can review at any time.
A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
The profit a company makes after deducting the cost of goods sold (COGS) from its revenue, before accounting for operating expenses.
The total profit of a business after deducting all expenses, taxes, and costs from total revenue. Also called the bottom line or net income.
Let Laabam.One handle the complexity. From invoicing to GST filing, our ERP software makes accounting effortless.