Month End Glossary

Profit and Loss Statement (P&L)

The Profit and Loss Statement (P&L), also known as the income statement, is a financial document that summarizes the revenues, costs, and expenses incurred over a specific period, reflecting a company's profitability.

The Profit and Loss Statement, or P&L, is a critical business document outlining a company's financial performance over a particular accounting period, such as a month, quarter, or year. It primarily lists the revenues earned, subtracts the associated costs and expenses, and determines the profit (or loss) achieved.

For example, a P&L statement for a retail business might show total sales figures as revenue and list cost of goods sold (COGS), wages, utilities, and rent as expenses. The difference between revenue and expenses will indicate the net profit or loss for that period.

This statement is instrumental for stakeholders, including management, investors, and creditors, to assess profitability and make informed decisions. For those utilizing tools like Easy Month End, incorporating P&L reviews within their month-end close procedures ensures accuracy and facilitates thorough analysis and reporting.

Related Terms

Make your next Month End easy.
Start your free trial today.

Your first Month End free. We’ll import your existing checklist. It’s 2025 - time to get control of your Month End close process!