P&L report

A P&L report (Profit and Loss report), also called a profit and loss statement or income statement, gives a clear overview of revenues, costs and the financial result for a chosen period. It helps assess how the organization is doing, which areas contribute to profit and where cost variances arise.

What a P&L report usually contains

It typically includes revenue, direct costs, gross profit, operating costs and other items down to the final profit levels according to the methodology used. The report can be broken down by account, cost center, product, region or company.

How to use a P&L report

The P&L is used for regular financial management, comparison with the budget and forecast, margin analysis and explaining changes in results. When interpreting it, it is necessary to watch the accounting methodology, the time period and the correct allocation of costs.

A uniform structure and definitions of indicators support clear financial management.