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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 generating a profit.

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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: