P&L Explained

So you’re in charge of a budget? But how are you going to show that you are sticking to it? You may need to report internally; inform stakeholders or simply reassure yourself that everything is on track. The profit and loss (P&L) statement is one of three common documents used to monitor this. Along with the balance sheet and cash flow statement; it allows you to assess the financial activity and health of a company or project. It can also help in preparing future budgets.