A Profit & Loss Statement, also known as an Income Statement, provides a breakdown of income and expenses over a specific period of time. This statement allows businesses to assess the performance of their company in relation to revenue, costs and profits. By analyzing their Profit & Loss Statement, businesses can make decisions about pricing, costs and investments that will help them increase their profitability over time. As such, it is important for businesses to keep accurate records of all their income and expenses so as to understand their current financial situation and make informed decisions about the future.