Profit and Loss Statement
The Accountant's Dictionary
Fri, Jun 19, 2026
A profit and loss statement summarizes revenue, costs, and expenses to show whether the business made a profit or loss.
What Profit and Loss Statement means in business operations
Profit and Loss Statement is explained here in the context of real finance, payroll, HR, and ERP workflows. This definition is written for business users who need practical understanding that supports implementation, reporting, approvals, reconciliation, and policy decisions.
If you are reviewing related concepts, continue to the The Accountant's Dictionary, browse ERP articles on the Eprecus blog, or explore the Eprecus ERP platform overview.
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Profit and Loss Statement
The profit and loss statement, also called the income statement, reports revenue, cost of sales, gross profit, operating expenses, and net profit or loss for a defined period.
Why it matters
It shows operational performance and helps management understand whether pricing, cost control, and sales activity are generating acceptable returns.
How teams use it
Finance leaders use the profit and loss statement for budgeting, board reporting, variance analysis, lender communication, and strategic decision-making.
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