What is P&L management?

P&L management, or Profit and Loss management, refers to the process of managing the revenues, costs, and expenses of a business to maximize its profitability. It's an essential part of running a business and is critical for strategic decision making.

Managing P&L involves careful monitoring of all the elements that contribute to the profit and loss statement (also known as the income statement). This includes revenue, cost of goods sold (COGS), operating expenses, and non-operating expenses. By understanding how each of these components impacts profitability, businesses can make informed decisions to drive growth and control costs.