A Profit and Loss (or P&L) statement is a financial document that summarizes the income, costs, and expenses of a business over a certain period of time. It includes revenues from sales and other sources, such as investments and grants; expenses for materials, labor, overhead, taxes, interest payments, depreciation, and amortization; and profits or losses from operations. The P&L statement provides an accurate snapshot of the company’s financial health and performance – so managing it is key to keeping your business on track. With its clear depiction of income, costs, and profits, the P&L statement can help you make smart decisions to ensure success. It’s the essential tool for any entrepreneur looking to maximize their business’s profitability!