P&L (profit and loss)
A statement of revenue, costs, and profit over a period.
Last reviewed 12 September 2026
A readable P&L moves top to bottom: revenue, direct costs, gross profit, operating costs, net profit. Anything more granular belongs in a drill-down, not the summary.
Compare periods side by side. A single month tells you almost nothing; twelve months in a row tell you the story.
Frequently asked
What is p&l (profit and loss)?+
A statement of revenue, costs, and profit over a period. A readable P&L moves top to bottom: revenue, direct costs, gross profit, operating costs, net profit. Anything more granular belongs in a drill-down, not the summary. Compare periods side by side. A single month tells you almost nothing; twelve months in a row tell you the story.
Why does p&l (profit and loss) matter for founders?+
Compare periods side by side. A single month tells you almost nothing; twelve months in a row tell you the story.
Related terms
Net profit
What remains after every cost, including tax and interest.
Gross margin
What is left from revenue after the direct cost of delivering it.
Balance sheet
A snapshot of what you own, what you owe, and what is left over.
Accrual accounting
Recording revenue and costs when they are earned or incurred, not when cash moves.
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