Income Statement
Also called P&L and Profit and Loss
The statement that shows revenue, costs, and profit over a period, also called the profit and loss or P&L. It answers whether you made money and where it went.
Why it matters
The P&L is the most-read financial statement because it tells the story of the business month by month. Reading your own fluently, line by line, is a basic founder skill that too many skip.
For example
The monthly P&L shows 1 crore of revenue, 15 lakh of COGS, 90 lakh of operating expenses, and a 5 lakh net loss.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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