Profit & Loss (P&L) Statement:
A Profit and loss statement needs to be studied, along with the balance sheet and statement of cash flows, to get a comprehensive idea of the firm’s financial position. Because P&L statements are based on accounting rules which can vary or be subject to estimates, investors need to fully understand how different estimates would affect the company’s performance particularly if aggressive estimates have been used to show a better profit.
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a financial quarter or year. The P&L statement is synonymous with the income statement. These records provide information about a company’s ability or inability to generate profit by increasing revenue, reducing costs, or both. Some refer to the P&L statement as a statement of profit and loss, income statement, statement of operations, statement of financial results or income, earnings statement or expense statement.
The profit and loss statement allows you to view the net profit or the net loss of your business during a particular accounting period, after the deduction of all income expenditure. Net profit is made if the total expenditure of your business is less than its sales. Conversely, net loss is if the total expenditure of your business is greater than its sales.
Steps to generate P&L Statement:
1. Login with Fresa Gold, Go to Accounts-> Profit & loss reports (Fig-1).
2. Second, click the Profit & loss summary report (Fig-2).
3. Select the branch name, current from date, to date and currency, finally, click the submit button (Fig-3).
4. Now, you can see the Profit & loss summary, you can download the report using the Options button and click the report button (Fig-4).
5. In the given List of reports click the required report format (Fig-5).
6. Then you can get the report in your format. If you want to print the report click the print button (Fig-6).
These are all the steps followed to generate profit & loss summary report.