P&L (Profit and Loss)
A financial statement summarizing revenue, costs, and profit over a period, showing whether the business earned or lost money on an accrual basis.
What is P&L (Profit and Loss)?
The profit and loss statement (P&L) summarizes revenue minus expenses over a period, typically a month or quarter. It shows whether you were profitable on paper during that period.
P&L uses accrual accounting: revenue is recognized when earned, expenses when incurred, regardless of when cash moves. A $120,000 annual contract signed in January may show $10,000 revenue per month even if the client pays quarterly.
P&L is essential for understanding business performance but can mislead on cash timing. A profitable month on the P&L can still have negative cash flow if collections lag.
Why it matters
Investors and boards expect P&L fluency. But business owners who only watch P&L miss cash timing risks: payroll due before client payments arrive, annual tool renewals hitting one month, tax obligations not visible on the P&L.
Pair P&L with cash position forecasting for complete visibility.
How RunwayCal helps
RunwayCal generates P&L views from your defined revenue and expense inputs, alongside cash-based runway and forecast views so you see both accrual performance and cash reality.
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See P&L alongside cash reality
RunwayCal shows profit and loss with cash position and runway so timing gaps are visible.
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