A Profit & Loss (P&L) Statement is a financial statement used to track a company’s revenues and expenses over a given period of time. This document is used to analyze income, costs, and profits for a business or for a specific project.
The P&L statement is a key performance indicator for a company’s financial well-being and is used to evaluate a business’s ability to generate revenues and profits. It is also used to assess how well a business is managing its expenses, and if costs are being properly controlled.
The P&L Statement helps to provide a glimpse into the overall financial health of a business and should be closely monitored by freelancers and businesses alike. In addition to the core financial data, the P&L Statement can also reveal valuable insights about a business’s financial performance, such as the effectiveness of marketing efforts, customer satisfaction, and the overall effectiveness of the business’s strategy.