28/10/2026
How well is your business performing? Your profit and loss statement (P&L) is a great place to start.
Also known as an income statement, your P&L shows your income and expenses over a set period. Unlike a balance sheet, which provides a snapshot at a specific date, it helps you understand how your results have taken shape.
It breaks down into:
💰 Income - what your business earns
💸 Expenses - direct costs like materials or contractors, and overheads like rent, wages, and fees
The difference between the two is your net profit or loss, often called the “bottom line”.
But there’s more to it than that. Your P&L can help you spot trends, manage costs, and make more informed business decisions.
👉 Learn more in our blog:
https://www.aafl.nz/understanding-your-profit-and-loss-statement
Need a hand understanding yours? Get in touch with our team.