How To Make A Business Profit And Loss Statement. It might not seem obvious by looking at a profit and loss statement but the final figure at the bottom ie the total profit or the total loss may be very different from the actual amount of cash thats made or lost. The income statement also called a profit and loss statement is one of the major financial statements issued by businesses along with the balance sheet and cash flow statement.
An income statement otherwise known as a profit and loss statement is a summary of a companys profit or loss during any one given period of time such as a month three months or one year. A profit and loss statement or income statement is a monetary statement that lists the sales costs and expenses of your business in a set period of time. It details the ability of a business to manage its profits by cutting costs and driving revenue.
Both the profit and loss statement and balance sheet are important financial statements - but each has a different function for business owners and investors.
Sometimes its called an income statement. For a restaurant this financial statement enables you to analyze your restaurants financial progress. Put another way a profit and loss statement tells you whether or not your business is making money. Cost of Goods Sold 426200.