Section 1: What is a P&L?

A profit and loss statement often shortened to P&L is a financial statement that is created over a specified period to give you a summary of revenue, costs and any expenses incurred.

A P&L is presented measuring a period of time this is usually monthly, quarterly and annually.

The basic fundaments of a P&L is revenue minus expenses which gives you either a profit or a (loss).

Basic example:

Period of time: DD/MM/YYYY

                                                 £                                                                             £

Revenue                                100                                                          100

Expenses                              (80)                                                         (120)

Profit / (Loss)                    20                                                        (20)