Profit & Loss Statement (P&L)
Definition
Also called an income statement. Shows revenue, expenses, and profit or loss over a period. Essential for understanding business performance. HelloBooks generates P&L reports automatically with AI-powered insights.
Related Terms in Core Accounting
Trial Balance
A report listing all general ledger accounts and their balances to verify that total debits equal total credits. Used to check for errors before preparing financial statements.
Bookkeeping
The day-to-day recording of a business's financial transactions — sales, purchases, receipts, and payments — into organized accounts. Bookkeeping is the foundation that accounting builds on: accurate books feed the general ledger, financial statements, and tax filings. HelloBooks automates bookkeeping by importing bank feeds, categorizing transactions with AI, and posting double-entry records in real time.
Cash Flow
The net movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out; negative cash flow signals the opposite. Distinct from profit — a profitable business can still run out of cash. HelloBooks tracks cash flow live and projects runway from your invoices, bills, and bank balances. See also the Cash Flow Statement.
Audit Trail
A chronological, tamper-evident record of every change made to a financial transaction — who created it, who edited it, what changed, and when. Essential for audits, fraud prevention, and regulatory compliance (SOX, GST, GAAP). HelloBooks maintains an immutable audit trail on every invoice, bill, journal entry, and payment.
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