Profit and Loss

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The Profit and Loss or Income Statement will show if your business made or lost money for a given period, usually a calendar month.

The Profit and loss usually has 5 main sections using the figures which come from the Income, Cost of Goods Sold and Expense accounts from the Chart of Accounts

Income
Cost of Goods Sold
Gross Profit
Expenses
Net Profit


The equation is:

Income - Cost of Goods Sold = Gross Profit

Gross Profit - Expenses = net position for the month.

Sample of Simple Profit and Loss:


Sample Profit and Loss