What is a Profit and Loss Statement & Why Is It Important?
- September 1, 2021
- Posted by: capribookkeeping
- Categories: Bookkeeping, Entrepreneurship, Finance & accounting
A Profit and Loss (P&L) statement is a financial statement that summarizes the revenue and expenses incurred during a specified period. The P&L statement is synonymous with the income statement and plays an important role in your business.
When I work with my clients I regularly run a P&L Statement and recommend that all small business owners do the same. The simplest way to keep track of your finances is to monitor your P&L Statement. By doing this, you are able to make important financial decisions, take corrective measures if necessary and take a proactive approach to your business.
Here are just a few more benefits to staying on top of your P&L:
Prepares you to file taxes
Make decisions without guesswork
Document-ready proof of the financial health of your business
Have questions about how your Profit and Loss Statement or are you interested in having our team handle your bookkeeping and P&L monitoring? Reach out to me at firstname.lastname@example.org.
–Ethan Capri, Founder and CEO, Capri Bookkeeping Solution