A profit and loss statement, also called an income statement, reports income, costs and the resulting profit or loss for a period. A balance sheet shows the position on a particular date. A cash flow statement instead records movements of cash. Source: Xero: Reading a profit and loss statement

Make comparisons on the same basis

Choose matching reporting periods and keep the income and cost categories consistent. Ask the accountant to explain any change in how bookings or commission are recognised. This gives the team a clearer basis for understanding why the result has changed.

Follow a change back to its cause

If a cost line rises, trace it to the underlying activity before making a decision. For example, compare extra marketing spend with the enquiries and bookings it supported. Record the explanation beside the figures so the next review starts with context.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.