In practice, the cuenta de pérdidas y ganancias groups income (sales, services) and expenses (purchases, salaries, rent, utilities, depreciation) and shows partial results along the way: the operating result, the financial result, and the result before tax. For a small SL it is the document that best answers the question of whether the business makes money.
The classic mistake is confusing profit with money in the bank. You can show a profit with an empty account because clients have not paid yet, or have cash and a loss because you collected advances for work not yet done. Nor is every payment an expense: if you buy a van, the PyG only shows its yearly depreciation, not the full price.
It is part of the annual accounts along with the balance sheet and the notes, and Spanish accountants call it PyG for short. The step from accounting result to tax due happens in the Impuesto de Sociedades, through the annual modelo 200 return. In kontora the PyG is built from your entries, so you can check it during the year, not just at year-end.
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