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a profit and loss statement is a financial statement that summarizes your income and expenses and its going to show you if you have a profit or a loss for a given period of time your user can produce a profit loss statement for last month last year last week and even yesterday sometimes its also called a statement of operations or an income statement you want to make sure youre reviewing your profit and loss statement on a regular basis to determine if you need to increase your revenue or cut costs you also use your profit and loss statement to prepare your tax return each year