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.
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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.
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