Profit and Loss (P&L) Statement

A Profit and Loss Statement, also known as an income statement, provides a detailed breakdown of a company’s financial performance over a specific period. It starts with revenue, subtracts cost of goods sold to calculate gross profit, then deducts operating expenses to arrive at operating profit, and finally accounts for taxes and interest to determine net profit. Startups use P&L statements to track financial health, manage costs, and communicate performance to investors. It is one of the most essential financial documents for decision-making and reporting.