Loss A/C




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P&L is all about expenses, revenues, and the company’s ability to generate profit


Revenue or income is what you bring from your products or services sales. It is the money (when realized) you have available to cover your expenses

Cost of

Goods Sold

Various direct costs are associated with selling your product or services. This is an important element of P&L that reflect what it costs you to sell your products or services truly.

Gross Profit

Your gross profit is what you have left after you have deducted your cost of goods sold from your revenue.

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All non-production expenses, such as rent, utilities, and marketing, fall under operating expenses. Analysing them can help identify areas where costs can be reduced to improve profitability.



Finally, check the net profit or loss to determine if the business is profitable. The company must make changes to reduce expenses or increase revenue if it is making a loss.

Net Profit

or Loss