#TradesLeague

What is PnL: An abbreviation for "Profit and Loss", also known as “P&L”.

What PnL tracks: Earned money vs spent money.

What PnL informs: if you run at a profit or a loss throughout that time.

If this amount is positive, it’s called net income.

If it’s negative, it’s called a net loss.

Evaluate financial performance: Offer insights into a business's financial health, including revenue, expenses, and profits.

Make informed business decisions: Helps businesses make strategic decisions, such as increasing revenue or cutting expenses.

Identify areas for improvement: Businesses can identify areas for improvement.

Assess financial health and potential for growth: Assess a business's financial health and potential for growth.

Identify risks and opportunities for growth: Highlight potential risks and opportunities for growth.

Track financial progress over time: Comparing PnL statements from different periods helps businesses track their financial progress over time.

Provide insights into financial performance: Offer valuable insights into a business's financial performance.

Help businesses make informed decisions: Provide essential information for businesses to make informed decisions about future goals and strategies.

Revenue & Profitability Metrics – Show how much your business earns and retains.

Expenses & Cost Metrics – Detail the costs involved in running your business.