Profit and loss statement

A profit and loss statement shows how the practice did over a period. The SEC's beginner guide says income statements show how much money a company made and spent over a period of time. The SBA's glossary describes the income statement as showing the entity's income and expenses, similar to a profit and loss statement. For a dental practice the statement lists collections as income and groups costs such as payroll, lab fees and supply costs. The bottom line is profit or loss, which feeds practice profitability. Cash-basis and accrual-basis reports can show different results, so ask a CPA which one a report uses.