A profit or loss account (also called an income statement, or statement of profit or losses, or statement of comprehensive income) summarizes the trading transactions of a business over a period of time. The profit or loss account deals with two main elements: income and costs. If total income exceeds total costs the difference is called a profit. If total income is less than total costs the difference is a loss. Most football clubs produce a profit or loss account covering a 12-month period, sometimes it might be slightly shorter or longer if they have altered their balance sheet date.

The profit or loss account in Table 3.1 covers the greatest year, to date, in the history of Leicester City Football Club. In 2015/16 Leicester won the English Premier League, despite having a fraction of the income of more established clubs. Whilst the fans of Leicester had perhaps some of the greatest days of their lives watching their team lift the Premier League trophy, the club also made a profit of over £20 million. This seems a lot of money, but the following year, when Leicester finished only twelfth in the Premier League, the club made a profit of over £80 million. This was mainly due to the club's participation in the UEFA Champions’ League. The club accountants, stoics that they are, may have been happier with the club's performance in 2016/17 and the record income and profits generated that year. Leicester's lower profits in 2015/16, despite the club's on-field success, suggests than an understanding of the profit or loss account, its components and how it is calculated, is a useful tool for anyone wanting to understand football finance.

It is important to be aware that clubs who have their shares listed on a stock exchange (like Manchester United, mentioned earlier), may have to produce more regular financial information to satisfy local legislation and stock exchange rules. These are called interim accounts and may cover a period of three, six or nine months.