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Just like you, your businesss health can benefit from regular checkups. Fortunately, financial health can be assessed entirely by you, no med school required. And one of the best diagnostic tools for your business can be a profit and loss statement, also known as a PL statement. Today, were going to run you through the what, why and how of a profit and loss statement, as well as some key learnings you can take away from this crucial financial document. Grab a seat and lets get into the profit and loss 101. First up, the anatomy of a profit and loss statement. A profit and loss statement, also known as an Income Statement, is a summary of a businesss revenues and expenses over a period of time. The basic formula at play here is profit equals revenues minus expenses. To go more detailed, your net profit equals your income minus cost of goods sold and operating expenses. So why is a profit and loss statement so important? When youre looking to assess how your business is doing finan
