Profit and Loss Account (P&L Account), or an income statement, contains financial data which business stakeholder groups find extremely useful. It shows the Sales Revenue, all business costs and profit or loss of a business over a given period of time. It is one of the Final Accounts.

Profit and Loss Account (P&L Account) is produced both for internal use and external use. Internally, managers need timely access to as much financial information as possible to make important business decisions. Externally, current shareholders and potential new investors need information to assess the performance of their investment, or make decisions whether to invest in this company or not.

https://www.superbusinessmanager.com/the-main-parts-of-profit-and-loss-account-pl-account/

Profit and Loss Account (P&L Account), or an income statement, contains financial data which business stakeholder groups find extremely useful. It shows the Sales Revenue, all business costs and profit or loss of a business over a given period of time.

Earning Profit is the main objective of all businesses in the private sector of the economy. However, even for non-profit organizations and those in the public sector, it is important to make a surplus in order to survive and keep operating.

Profit creates an incentive for most businesses to do well. After all, if a business does not earn Profit, or surplus, it would struggle to survive.

https://www.superbusinessmanager.com/the-importance-of-profit-and-loss-account-pl-account/

Jerry Grzegorzek

Jerry Grzegorzek

Founder & Editor-in-chief at SuperBusinessManager.com. Super Business Manager provides business resources for better decision making to empower human beings.