Resources › Finance · 3 of 4
P&Ls
By RISE Business Framework · Created by Gary Harper and Brandon McCurdy · Reviewed
A profit and loss statement, or income statement, reports a business's revenue, expenses and net gain or loss over a set period. In RISE, the P&L uses the same line items as the Pro Forma in a single actual-period column. That lets you set projection and actual side by side and compare them to budget.
How RISE does it
- Reports net gains or losses over a specific period.
- Shows total revenue earned and expenses incurred.
- Mirrors the Pro Forma line items exactly, in one actual-period column.
- Used to compare against budget, spot trends and plan growth.
P&Ls is one of four tools in Finance, part of the Resources quadrant of the RISE Business Framework.
The RISE tool
P&L worksheet line items
Record actuals for the period, using the same lines as your Pro Forma.
| Section | Line items |
|---|---|
| Income | Sales, Services, Other Income |
| Non Recurring Expenses | Furniture, Gifts, Other |
| Expenses | Salaries & Benefits, Rent Expenses, Operational Expenses, Depreciation Cost, Subscriptions, Administrative Expenses, Other |
“The P&L statement is the financial MRI of your business. It scans for strengths, weaknesses, and opportunities, helping you diagnose and treat financial health.”Gary Harper
AI RISE Coach
Work through P&Ls with the AI RISE Coach
“Walk me through P&Ls in the RISE Business Framework and help me apply it to my business.”
Quick self-check
“We keep our financial records organized and clean and can generate accurate reports when needed.”
Frequently asked questions
What is a P&L statement used for?
It shows whether the business made or lost money over a period. RISE uses it to compare actuals against the budget and Pro Forma, spot trends and plan growth.
Is a P&L the same as an income statement?
Yes. A profit and loss statement is also known as an income statement.
The other tools in Finance
- Pro FormasProject income and expenses across three periods to see whether the business will stay profitable.
- BudgetsPlan spending and income in four blocks so you can cut costs and fund growth on purpose.
- Variance ReportsCompare budget to actual line by line, calculate the variance and assign an outcome.
Related in another quadrant: Stoplight Reports
