Do you want to get a clear view of your company’s sales and expenses? If so, you need to use a profit and loss statement template. This document will help you track your business performance over time and see where you can make improvements.
In this article, we will discuss what a profit and loss statement is all about. At the same time, we will also share seven free profit and loss statement templates that you can use to get started.
What is a Profit and Loss Statement?
A profit and loss statement (P&L) is a financial document showing a company’s sales and expenses over time. This statement can track your business performance and see where you can make improvements.
The P&L statement is also helpful for managers to get a realistic view of their company’s finances. This document can show the totals of all revenue sources and help you make informed decisions about your business.
Purpose of a Profit and Loss Statement
A P&L statement can be used for many purposes. For example, it can be used by a company owner or corporate officers to make decisions about the business. Investors can also use it to see if a company is doing well or not.
For businesses that need financial backing, lenders can use this statement to determine if a company is eligible for a loan. In addition, it gives insights into a company’s ability to generate profit and manage expenses.
Components of a Profit and Loss Statement
While they are unique to each company, there are some lines of commonality that you will generally see on most P&L statements. Every profit and loss statement generally includes the following components:
- Net sales: This is the total revenue the company generates.
- Gross profit: This is the profit left after the cost of goods sold is deducted from the net sales.
- Operating expenses: This includes all of the expenses that are incurred to run the business, such as rent, utilities, and payroll.
- Net income: This is the profit left after all expenses are deducted from the gross profit.
- Cost of goods sold or services rendered: This is the total cost of the products or services sold.
- Gross margin: This is the difference between the net sales and the cost of goods sold.
- Utilities: This is the cost of power, water, and other utilities necessary to run the business.
- Payroll: This is the cost of salaries and wages for all employees.
- Income taxes: This is the amount of money that is owed to the government in taxes.
- Rent: The cost of renting office or retail space for the business.
7 Sample Free Profit and Loss Statement Template
Any business owner or manager can use these seven profit and loss statement templates to track their company’s performance.
Simple Profit and Loss Statement
A simple profit and loss statement can be used to track your company’s sales and expenses over a period of time. This template features net sales, gross profit, and operating expenses.
Profit and Loss Statement for Cost of Goods Sold
This profit and loss statement template includes a line for the cost of goods sold. This is helpful if you want to track your gross margin over time. In addition, this template also includes all the other necessary components, such as net sales and operating expenses.
Profit and Loss Statement for Small Business
A profit and loss statement for small businesses is a single-step P&L statement perfect for sole proprietorship and small businesses. It’s a simple profit and loss statement that includes all necessary components, such as net sales, cost of goods sold, and gross profit.
Monthly Profit and Loss Statement
A monthly profit and loss statement can be used to track your company’s sales and expenses monthly. This template includes necessary components, such as gross profit, net sales, and operating expenses.
Profit and Loss Statement for Self-Employed
If you’re self-employed, you can use this profit and loss statement template to track your business income and expenses. This template includes all necessary components, such as operating expenses, gross profit, and net sales.
Profit and Loss Statement for Rental Property
You can use this profit and loss statement template to track your income and expenses if you own rental property. This template includes all components, such as net rental income, operating expenses, and gross profit.
Yearly Profit and Loss Statement
A yearly profit and loss statement can be used to track your company’s annual sales and expenses. This template features all necessary components, such as net sales, gross profit, and operating expenses.
Formulas Used for a Profit and Loss Statement
Since a P&L statement is a financial document, simple math formulas are used to calculate the various profit and loss components.
- Net Sales: Total Revenue – Returns and allowances
- Gross Profit: Net Sales – Cost of goods sold
- Operating expenses: Utilities + Payroll + Income taxes + Rent
- Net income: Gross profit – Operating expenses
- Net operating profit: Gross margin – operating expenses
- Net profit: Net profit prior to taxes – taxes
- Income statement = Revenue – expenses
Use DATAMYTE to Make Profit and Loss Statement Templates
If you’re making P&L statement templates from scratch, consider using DATAMYTE to make the process easier. The DataMyte Digital Clipboard, in particular, is a workflow automation software capable of creating tools such as a profit and loss statement.
With the DataMyte Digital Clipboard, you can take advantage of our drag-and-drop feature to create a total profit and loss statement in minutes (as long as you have the data with you).
Plus, our software is cloud-based so that you can access your profit and loss statement templates anywhere, anytime. And if you need to share your templates with colleagues or team members, you can do so with just a few clicks.
Try out the DataMyte Digital Clipboard today and see how easy it is to create profit and loss statement templates (as well as other types of templates). Book a demo now!
Conclusion
A profit and loss statement is an essential tool for any business manager. It provides a clear view of a company’s sales and expenses as well as overall performance over a period of time. Use this article’s sample profit and loss templates to create your profit and loss statements.
And if you’re looking for an easy way to create profit and loss templates, consider using the DataMyte Digital Clipboard.
