Business & Accounting
Profit and Loss (P&L)
Definition
A financial statement that summarizes revenue, costs, and expenses over a specific period to show whether a business earned a profit or incurred a loss. Also called an income statement. The basic structure is: Revenue minus Cost of Goods Sold equals Gross Profit, minus Operating Expenses equals Operating Income, minus Taxes and Interest equals Net Income. Freelancers and small business owners should generate a P&L statement monthly or quarterly to understand business health.
Related Templates
These SheetCraft templates use or relate to Profit and Loss (P&L):
- Small Business Bookkeeping System, Simple bookkeeping for small business owners who don't have an accountant, income, expenses, P&L, sales tax, and bank reconciliation.
- Freelancer Financial Hub, All-in-one financial management for freelancers, income tracking, expense categorization, quarterly tax estimates, and client profitability.