Your P&L is the unfiltered truth about your ecommerce hustle and ecommerce accounting. It’s a rundown of your revenue, costs, and expenses over a period—basically, are you stacking cash or burning it? You’ve got sales, Cost of Goods Sold (COGS), and all those operating expenses (ads, apps, you name it). The result? Your net profit, the number that tells you if you’re winning or just pretending. Dig into this regularly, and you’ll see where to cut the fat, double down, or pivot. Ignore it, and you’re flying blind. Check it, own it, grow.
For more on the P&L, check out this detailed explanation of profit and loss statements.