A P&L statement shows how much money your photography business makes or loses. Think of it like reviewing all your photoshoots and business expenses to see if you're actually making money.

Here's how it breaks down: (example accounts)

1. Revenue (Top Line)
   • Wedding packages ($2,500 per wedding)
   • Portrait sessions ($300 per session)
   • Event photography ($1,000 per event)
   • Print sales and digital image downloads
   • Album sales
   • Second shooter fees you charge to other photographers
2. Cost of Sales (Direct Costs)
   • Second shooter payments ($500 per wedding)
   • Print lab costs
   • Album costs from your supplier
   • Online gallery hosting fees
   • Travel costs to specific shoots
   • Props for specific shoots
   • Memory cards used for specific jobs
3. Operating Expenses
   • Camera gear depreciation
   • Insurance
   • Computer and software (Lightroom, Photoshop subscriptions)
   • Website hosting
   • Studio rent (if you have one)
   • Marketing (Instagram ads, wedding fairs)
   • Training and workshops you attend
   • Professional association fees
   • General business insurance
4. Net Profit (What you actually make)
   • This is what's left after all expenses
   • This is your actual photography business income
   • This is what you pay taxes on

Here is a realistic example of a photographer's monthly P&L: