A Loss and Profit Statement (also known as an income statement or P&L) is a key financial document that outlines the revenues, expenses, gains and losses from a specific period of time. This financial report helps businesses measure profitability, evaluate their performance, and make decisions on their future plans. Every successful business will use a Loss and Profit Statement to monitor their successes and failures, ensuring they remain on track towards their goals both short-term and long-term.