Profit & Loss Statement (P&L)

What is a P&L Statement?

A Profit & Loss statement (also called an income statement) summarizes your revenue, costs, and expenses over a specific period. It shows you whether your business is actually making money.

P&L Structure

1. Revenue (top line)
2. - COGS = Gross Profit
3. - Operating Expenses = Operating Profit
4. - Other Expenses (interest, taxes) = Net Profit (bottom line)

Why E-Commerce Sellers Need Real-Time P&L

Traditional P&L statements are generated monthly or quarterly by accountants. But e-commerce moves fast — you need to see your P&L in real time to make informed decisions about marketing spend, pricing, and inventory.