Accounting

    Profit & loss (P&L)

    A statement summarizing revenue minus expenses over a period.

    Definition

    Also called income statement. Top line = revenue, bottom line = net profit. Monthly P&L is the most useful management report for small trades.

    Related terms

    Balance sheet

    A snapshot of what a business owns, owes, and is worth at a point in time.

    Net profit margin

    Net profit as a percentage of revenue.

    Revenue

    Total money earned from sales before any expenses are subtracted.