28% of small businesses owners said the biggest challenge they would face over the next few months is cash flow. There are several forms like a balance sheet, cash flow statement, and profit and loss statement that can give you different views of your business’ cash flow and in turn, clearer insights into its financial health. A profit and loss statement or a P&L statement is a financial report that shows the amount of profit or loss your business has experienced over a specific amount of time. This time could be a month, fiscal quarter, or year.
What’s included in a profit and loss statement?
- Cost of goods sold
- Other income and expenses
- Net income
Every business will have a slightly different P&L statement depending on type of business and time period of the report. Whether your business is profitable, or operating at a loss, this statement can help you make decisions about how to better position your business moving forward.