Here, we look at why it makes good commercial sense to gather the right data and create a formal calculation of potential profit or loss. QUESTION: Having started a business as a self-employed driving ...

This is the final part of the profit and loss account. If the net profit figure is negative, the business has made a loss.

When a company makes money after it pays all its costs, it is said to have made a profit. If a company does not make enough money to cover all its costs, it is said to have made a loss.