Measures your organization's net profit based on total income, salaries, and expenses.
The goal of a Profit & Loss report is to measure the profits by excluding the expenses from the income and provide an overview of the financial health of the business.
The profit and loss statements contain summarized information about revenue and expenses. Based on the standard operating procedure of a business, these statements are generated on a weekly, monthly, quarterly or annual basis.
The basic formula of a Profit and Loss report is:
Revenue – Expenses = Profits