Profit and loss statement with templates and examples

Now you have everything you need to grow your knowledge about P&L statements. But it’s prime time we get to a few useful templates you can use to craft your own profit and loss statement. As soon as you implement these techniques, you’ll be on your way to creating better financial statements and a work environment that drives stellar performance. As soon as you enable cost rates in Workspace settings, you can apply billable rates and cost rates to any project, client, and employee. This allows you to create more detailed profit and loss statements because you’ll know exactly how much you charge your clients and pay your workforce. As we have seen, the cash and accrual methods of accounting come with their pros and cons.

With millions of restaurants spread throughout the world, it might be interesting to explore how a P&L statement can impact their profitability.
Businesses routinely prepare a profit and loss statement each month, quarter, or year.
Use a P&L template to calculate your net income (gross income minus expenses), and whether you need to increase income or reduce costs.
Whether a business sells goods or provides services, a P&L statement can help determine how it has been performing in the past and predict how it may perform in the future.
For this example, it suffices to use the cash method of accounting, as this method records instances when cash actually enters or leaves the business.

Compile financial information for multiple rental properties into one profit and loss statement. This comprehensive template includes sections for recording property details, deposits received, and rental income. List ongoing expenses, such as landscaping and property management fees, for each month of the year. Track one-time expenses separately, listing the date, total amount paid, and other details.

#3 Example of profit and loss statement: Restaurant

You have considerably more control over your internal costs than your external—taxes, interest payments, and other expenses are partly determined by the work of financial professionals. For that reason, many accountants consider EBITDA the best measure of how a security business is performing. Every profit and loss statement starts off by showing your company’s revenues. One of the most common reasons small businesses start producing profit and loss statements is to show banks and investors how profitable their business is.

As we’ve covered, a P&L statement is an overview of your profits and losses over a particular period of time, such as a month, quarter or year.
Your interest expenses are the total interest payments you made to creditors for the period covered by the income statement.
In fact, it’s called single-step because it gives you a picture of the loss or profit in a single step.
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To get the net income, you’ll need to subtract the Total of expenses and losses from the Total revenue and gains. Click on Make a copy, and you’ll get an editable copy of the Single-step P&L statement template. That’s why we’ve laid out 3 simple yet effective ways to make your profit and loss statements more akin to a walk in the park. Third, you have to cover the utilities, marketing expenses, and depreciation — all represented as general and administrative expenses (often also called non-operating expenses). Second, you need to subtract the operating expenses, including wages of the entire kitchen and wait staff, plus the rent.

Expenses

The balance sheet, on the other hand, is a snapshot, showing what the company owns and owes at a single moment. It is important to compare the income statement with the cash flow statement since, under the accrual method of accounting, a company can log revenues and expenses before cash changes hands. Use this template to create a P&L statement that tracks your month-by-month and year-to-date (YTD) costs and expenses compared to your revenue. A month-by-month bar chart indicates your P&L trend by mapping how your gross profit relates to your total expenses over a series of months. This profit and loss template includes common hair salon sales items and expenses. Determine gross profit by totalling your revenue from salon services, retail sales, and rental income and subtracting the total cost of expenses.

Public companies produce P&L statements to meet legal reporting requirements. The P&L is carefully reviewed by market analysts, investors, and creditors to evaluate a company’s revenues, expenses, and profitability. A profit and loss statement helps you see exactly how money flows into your business, where you spend that revenue, and what adjustments you need to maximize profit.

Yearly profit and loss statement

Use this template to create a pro forma income statement for annual financial projections or to complete a year-over-year profit and loss analysis. For increased efficiency, this template includes sample data for a small business, including gross sales, cost of sales, operating expenses, and net income before and after taxes. You can use the income statement to calculate several metrics, including the gross profit margin, the operating profit margin, the net profit margin, and the operating ratio.

What is a common size profit and loss statement?

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. Mary Girsch-Bock is the expert on accounting software and payroll software for The Ascent. Revenue can also include net revenue which is the gross revenue minus adjustments. P&L management refers to how a company handles its P&L statement through revenue and cost management. A balance sheet shows you how much you have (assets), how much you owe (liabilities), and how much is left over (equity).

What Is the Difference Between the P&L Statement and a Cash Flow Statement?

For example, a company’s revenues may grow on a steady basis, but its expenses might grow at a much faster rate. We’ve also created a customizable, plug-and-play version of this profit and loss statement template in Google Sheets. Simply enter your financial data, and the table will automatically calculate key figures such as gross profit, net operating income, and net profit. Keep in mind, a profit and loss statement is different from a balance sheet, although they are both crucial financial documents for companies. Meanwhile, a balance sheet shows a bigger and more detailed picture of a company’s financial position since it also includes assets, liabilities, and stockholder equity.

Use the example list of expenses to tailor your profit and loss statement to your small business. Track your week-by-week budgeted revenue versus your actual revenue with this weekly profit and loss template. The template’s detailed Profit and Loss Category sections include revenue, COGS, sales and marketing costs, labor and administrative costs, and earnings before interest and taxes (EBIT).

Construction Profit and Loss Template

For example, it separates the operating expenses and operating income from non-operating expenses and non-operating income. In turn, this helps a company find out which areas are performing as expected or poorly. For illustration, we can take a single month’s worth of meals and pull it through a comparative P&L statement. In particular, let’s do a summary of the revenue and costs for January and February 2024. For this example, it’s best to use the cash method of accounting, as accountants typically record revenues and expenses only when the cash changes hands. Businesses use profit and loss (P&L) templates to list revenue and expenses to determine profitability.

QuickBooks Desktop is one of the best accounting software options for small and growing businesses. Offering three plans, you can easily scale up to the next plan as your business grows. The latest version of QuickBooks Desktop offers enhanced system navigation and expanded help options. Either way, the profit and loss statement lets you see exactly where your business stands in terms of profit, which in turn allows you to make better business decisions. This number can tell you how well your products are performing or whether your services are profitable. There are two main categories of accounts for accountants to use when preparing a profit and loss statement.

With millions of restaurants spread throughout the world, it might be interesting to explore how a P&L statement can impact their profitability. For practical purposes, we’ll offer a simplified version of the single-step P&L statement for your small bakery. At this point, you need to know some types of P&L statements can be extraordinarily simple, and others can be incredibly complex. To explore further, we’ll next discuss the accrual and cash method in more detail.

After crunching the numbers, they spot trends in managing expenses and decide to invest in one company rather than another. In other words, a profit and loss statement is a handy tool that allows you to scrutinize the financial health (or lack thereof) of your company. If you want to measure the profitability of your company accurately, it helps to stay on top of the numbers. With an enterprise project management solution such as Wrike, you can create budget estimates, view reports, and measure project profitability.

In Clockify reports, you get to compare your billable amounts (what you charge your clients) with your cost amounts (what you pay your employees). The accrual method is used for companies that need to get a more detailed overview of their financial performance. Finally, you’ll get the net income that depicts the loss or profit of the business for the given period. With these important criteria out of the way, let’s explore 3 examples to make the process of creating profit and loss statements more tangible.