Most publishers require an editor to put together a profit and loss statement, or a P&L, when they are interested in acquiring a book.  The P&L helps the editorial board or acquisition team decide if the project is a good investment for the publishing house.  Understanding just what goes into a P&L statement can be a key factor in getting your book approved or not.

As I’m not an expert on P&L statements by any stretch of the imagination, I’m going to point you all over to Eric at the Pimp Your Novel blog.  Eric works int eh sales department of a major publisher and his four part series on P&L statements is not to be missed.  Be sure to read the comments after each of his posts, as there is a lot of good information to be found in the answers he gives to various questions there as well.

Part One

Part Two

Part Three

Part Four