<title>Learn about profit and loss statements</title>
<category>biz</category>
<klink type="cncpt">Tell me about profit and loss statements</klink>
</index>
<content>
<p>A profit and loss statement shows your business profits for a year, quarter, or other time period. Unlike a balance sheet, which shows where your business stands on a certain date, a profit and loss statement shows how your business did over a period of time. Owners and managers, as well as creditors and government agencies, use this as the basic financial report to gauge business performance. Comparing income, expenses, and net profit for different periods can show you the areas in which your business is doing better or worse relative to other periods.</p>
