The heart of a small business accounting is a profit and loss statement. A profit and loss statement summarizes a company's income and spending over a certain time period. This is also known as an income statement, profit statement, statement of operations, or profit and loss report. Whatever word is chosen to describe this financial statement, it represents a snapshot of a company's income and spending during a given time period. This is often done at least quarterly and yearly, although it can be done more regularly. Profit and loss statements are often generated on a monthly, quarterly, or yearly basis.