A Profit and Loss Statement (P&L) is an official business document providing financial information about a company’s performance. It shows the profits realized over a set period of time by subtracting expenses from income. It’s an essential tool used to assess the health of a business and identify areas where savings can be made. By seeing how much money has been earned and what has been spent, it’s easier to understand the current standing of the business and plan for the future. With a P&L in hand, businesses can make informed decisions that will lead to greater success.