A profit and loss statement summarizes all the activity in a company’s income and expenses accounts within a specific timeframe, such as a month, a quarter, or a year.
It is an essential financial document that compares company revenue against expenses to determine the net income of the business.
This is a Microsoft Excel Document.
What does it solve?
Financial Tracking, Compliance, Budget Setting
Example
Bright Tech Solutions, a mid-sized software development company, noticed that their marketing expenses were disproportionately high on their profit and loss statement, yet the return on investment was minimal. As a result they reallocated a portion of their marketing budget towards research and development, an area showing promising growth. This shift not only reduced unnecessary expenditures but also led to the development of two new software products, significantly boosting their revenue.
