← Back to glossary Category: Financiar Profit and loss statement Quick answer: Financial statement showing a company's revenues, expenses and result (profit/loss) over a period. Key takeawaysOperating revenue — goods sales (707), production, servicesOperating expenses — cost of goods (607), payroll, rent, utilities, depreciationOperating resultFinancial revenue/expenses — interest, FX differencesNet result — profit/loss after tax What the P&L is The profit and loss statement (P&L, income statement) presents the company's revenues and expenses over a period (month, quarter, year) and the result: Revenue − Expenses = Profit / Loss. Typical structure Operating revenue — goods sales (707), production, services Operating expenses — cost of goods (607), payroll, rent, utilities, depreciation Operating result Financial revenue/expenses — interest, FX differences Net result — profit/loss after tax Difference from cash flow The P&L measures profitability (accrual basis — revenue recognised at invoicing, not collection). Cash flow measures liquidity (actual money in/out). A company can be profitable in the P&L yet cash-strapped. Why correct operational data matters A relevant P&L by product/channel/customer needs granular data: exact cost of goods sold, discounts, shipping. Without operational integration, true margin per channel (retail vs marketplace vs B2B) stays invisible. Frequently askedDifference between P&L and balance sheet?The P&L shows performance over a period (revenue vs expenses). The balance sheet shows position at a point (assets vs liabilities). The P&L explains how the result changed between two balance sheets.Does P&L profit mean money in the bank?Not necessarily. The P&L uses accrual accounting: revenue is recognised at invoicing. Cash may arrive much later. That's why cash flow is tracked separately.Can I get a P&L per sales channel?Yes, if operational data (revenue, cost, commissions, shipping) is tagged per channel. Azuvio enables margin reporting per channel, customer or product. Where Azuvio fitsConformitate ANAFConectori ERPSoftware OMS Related termsBalance sheet (Romania) — Financial statement showing a company's position at a point in time: assets = equity + liabilities.Trial balance (Romania) — Monthly accounting summary that confirms debits equal credits and feeds every Romanian tax filing (D300, D394, D112, SAF-T).Cash flow — The actual movement of money in and out of a company over a period — a measure of liquidity, not profit.Chart of accounts (Romania) — Structured list of all accounting accounts a company uses, organised by classes and groups per Romanian OMFP regulations. Last updated: 2026-07-06