Bookkeeping and payroll
Profit and loss statement
A profit and loss statement, also called an income statement, shows a business's income and expenses over a set period of time.
A profit and loss statement shows what came in and what went out for a month, quarter or year. The IRS says an income statement shows the income and expenses of the business for a given period. The bottom line is profit or loss.
Owners use it to price work, control costs and prepare tax returns. Lenders ask for it too. The SBA tells established businesses to include income statements, balance sheets and cash flow statements for the last three to five years in a loan business plan. The report depends on your chart of accounts and your accrual accounting or cash choice. See the business advisory page for bank financing.
Related terms
Sources
Talk to Wallace CPA
Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one.