How Do You Define A Profit & Loss Statement?
Defining your profit and loss statement is the initial step in creating your P&L. Without a proper definition as it pertains to your business, the entire statement means nothing to you or those who read it. Defining your profit and loss statement is a matter of determining how it will be used. Determine who will be using your profit & loss statement. Profit & loss statements are typically viewed primarily by managers and accountants of businesses, but yours might also be viewed by those from whom you are seeking loans, potential clients or potential investors. Determining how your profit & loss statement will be used will go a long way to defining your P&L. Decide what you will include in your profit & loss statement. Profit & loss statements include information about income and expenditures, but depending on the audience for your P&L, you may decide to cater it to a specific group. If you are trying to convince a specific client to hire your company, you will want to create a P&L that
