A P&L is a financial statement that summarizes all the revenues, costs and expenses that a business has incurred over a period of time. The P&L is a helpful snapshot of the company’s ability to generate profits, either by increasing revenues or by reducing costs and expenses. Usually P&Ls are reported quarterly or on an annual basis, as part of a company’s financial statements. Publicly traded companies are required by law to file financial statements, but smaller businesses would be wise to generate financial statements also to get an accurate overview of their financial health. The P&L is also referred to as an “Income Statement”.