P&L
Profit and Loss statement (income statement)
In one sentenceThe report that shows revenue, costs and profit (or loss) over a period, like a month, quarter or year.
What it means
A P&L starts with revenue, subtracts COGS to get gross profit, subtracts operating expenses to get operating profit, then interest and taxes to reach net profit. It is one of the three core financial statements, alongside the Balance Sheet and the Cash Flow statement.
How to use it
- Review your P&L every month, not just at tax time.
- Compare each month with the same month last year (YoY) to spot real trends.
How AI helps
AI can read a P&L export and explain it in plain English: what changed, what is unusual, and what questions to ask your bookkeeper.
Prompt to try
Here is my P&L for the last 12 months: [paste or upload]. Explain in plain English: what is growing, what is shrinking, my gross and net margin each month, the 3 biggest cost increases, and 5 questions I should ask my accountant.
Fill in the [brackets], then paste it into evyAI, ChatGPT, Claude or Gemini.
Related terms
Revenue vs Profit Balance Sheet Cash Flow EBITDA
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