A profit and loss statement (P&L), also known as an income statement, summarizes the income and expenses of a company over a specific period of time to arrive at its net earnings for the period.
Steps to Effectively Use Your Profit and Loss Template
- Download the Excel file.
- Use the monthly or annual worksheet, depending on what type of statement you want to produce.
- Replace all blue cells that contain hardcoded numbers with your company’s information.
- Double check to ensure all the formulas in black cells working properly.
- Save as a new file and save a version as PDF as well as XLS.
- Monthly P&L template - perfect for businesses which require regular reporting and detail. All information is shown in a series of monthly columns which makes the details clearer than it would annually. Perfect for small, medium and large businesses as it can be adjusted.
- Annual P&L template - ideal for businesses who have been operating for several years. Follows the same format and structure and the monthly P&L but does not include a total column at the end that sums up each of the periods. Can be used by any size business and can be easily altered.
Components of the P&L Template
- Revenue streams (also called sales streams)
- Returns, Refunds, Discounts
- Total Net Revenue
- Cost of Goods Sold
- Gross Profit
- Advertising & Promotion
- Depreciation & Amortization
- Rent and Office
- Salaries, Benefits & Wages
- Selling, General & Administrative (SG&A)
- Earnings Before Interest & Taxes (EBIT)
- Interest Expense
- Earnings Before Taxes (EBT)
- Income Taxes
- Net Earnings