Profit and Loss Statement (P&L)
A financial statement that summarizes revenue, costs, and expenses over a period — showing whether the company made or lost money.
The Financial Statements page shows your P&L computed from your RunwayCal inputs.
What is Profit and Loss Statement (P&L)?
The profit and loss statement (also called an income statement) is one of the three core financial statements. It shows your revenue at the top, subtracts various categories of expenses, and arrives at net income (or net loss) at the bottom.
The basic structure is: Revenue - Cost of Goods Sold = Gross Profit - Operating Expenses = Operating Income - Interest and Taxes = Net Income.
For startups, the P&L is usually simple: subscription revenue minus payroll, tools, and other operating expenses. Most early-stage startups show a net loss because expenses exceed revenue — that's expected as long as the trajectory is improving.
Why it matters
The P&L tells the story of your business economics over a period. It answers: are we getting closer to profitability? Where does the money go? How does this month compare to last month?
Investors and board members review the P&L to understand the financial trajectory. Month-over-month trends in revenue, gross margin, and operating expenses reveal whether the business is improving or deteriorating.
Formula
Net Income = Revenue - COGS - Operating Expenses - Interest - Taxes
Example
March P&L: Revenue $40,000 - COGS $8,000 = Gross Profit $32,000 - Operating Expenses $75,000 (payroll $55,000, tools $8,000, other $12,000) = Operating Loss ($43,000). The company lost $43,000 in March, which represents the net burn for that month.
How RunwayCal helps
RunwayCal generates a P&L view on the Financial Statements page, computed from your team, tools, commitments, and deals data. No manual accounting needed — the statement is always current.
Common mistakes
- 1Confusing the P&L with cash flow (P&L uses accrual accounting, cash flow tracks actual money movement)
- 2Not separating COGS from operating expenses, which hides your true gross margin
- 3Only looking at the bottom line without analyzing the component trends
See your P&L — always up to date
RunwayCal generates your profit and loss statement from the financial data you've already defined. No manual bookkeeping.
View your P&L → Start free