HomeProfit and Loss Statement (P&L)GlossaryProfit and Loss Statement (P&L)

Profit and Loss Statement (P&L)

What is a Profit and Loss Statement?

A Profit and Loss (P&L) statement, also known as an income statement, summarises a business’s revenues, costs, and expenses during a specific period, revealing net profit or loss.

Profit and Loss Statement (P&L)

Explanation

The P&L statement is crucial for assessing:

It usually covers monthly, quarterly, or annual periods and helps identify where the business can cut costs or expand revenues.

Practical Example of a P&L Statement

If a construction company reports £500,000 in revenue and £420,000 in expenses over one year, it records a net profit of £80,000.

How Bizcap Can Help:
If your P&L shows tight margins, Bizcap can provide funding to invest in growth areas or buffer cash flow while you optimise expenses.

Woman in a toy store with her child

How a Bizcap Line of Credit helped this toy business secure essential stock in record time

With Bizcap’s Line of Credit and standout customer service, an e-commerce retailer secured seasonal stock on time, ensuring smooth operations and timely deliveries.

Read More