Knowledge Center

  • The Top Line is the Most Important

    Most people will look at a P&L and argue that profits (or losses) are the most important line. In fact, by name the statement is called the Profit & Loss statement so it must be the most important! It’s not. The bottom line is simply an output- it is not something that can be measured or changed without influencing the other items in the statement, so while it is important, it is not the most important. So which line is? The top line- revenues, and here’s why: the amount of money you bring in from sales determines the amount of money that can flow through the rest of the P&L (the business).