InvoiceBerry Tips for for Freelancers & Small Businesses 9 Most Important Financial Numbers Explained | Page 6

3. Profit and Loss
Your Profit & Loss (P&L or income) statement is crucial, as it
gives you a snapshot of the financial status of your business. In
order to calculate Profit & Loss:
company revenue – company expenses = profit or loss
If this numbers comes out to be positive, that means your
business has made a profit. If negative, however, your business
has made a loss.