Source: Small Business Trends | Repost QBScott 4/14/2022 –
As a business owner, you need to know how well you are generating profits. This type of profit and loss report is one of three financial statements.
A p l statement is an important way to see what’s happening financially over time. This is a great way to keep track of your small business financials.
What Exactly is a Profit and Loss Statement?
This kind of financial statement looks at the overall profit by summarizing expenses, costs, and revenues. It’s a snapshot of a company’s financial health and business performance.
A p l statement is issued quarterly and annually. Businesses should know how a balance sheet works too. They are added along with a cash flow statement. Put together, all three are a popular way to show profit and loss in a business plan.
Why a Profit and Loss Statement is So Important for a Small Business
This accounting concept looks at business income for a specific period. P l statements are critical for other reasons too. Following are a few of the reasons you need these statements.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale