A profit and loss statement (P&L) template can be used to create a record that measures and shows all the revenue and expenses a company incurred during a specific period of time.
Yes, a profit/loss statement, otherwise known as an income statement, is one of three main financial statements used to determine a business’ financial health. Our profit and loss Excel template makes it easy to create a P&L with your own company’s financial information.
The P&L Excel template contains sections for revenue and expenses, which include net sales, gross profit, cost of goods sold, selling expenses, general and administrative expenses, and net profit. This statement should be prepared and reviewed monthly to evaluate performance and make adjustments as needed to stay on track with financial budgets and goals.
A profit and loss statement is used both internally and externally for different purposes. Internally, it can be viewed at the corporate level, department level, product level or even customer level. By evaluating the P&L statement at each level, the company can gain insightful understanding of how profitable a product, customer relationship or department is and adjust as needed.
This document is considered one of the most important financial statements due to the amount of information that can be pulled out of it. Externally, a P&L is used by investors, creditors, and stakeholders to understand how the company is making money and how they are allocating the revenue. It acts as the first impression to investors and creditors as a proof of business success or failure.
Here’s how to do a profit and loss statement in Excel:
Step 1: Download the P&L Excel template.
Step 2: Determine the reporting period (monthly, quarterly, yearly).
Step 3: Export the trial balance from your accounting system for the specified time period.
Step 4: Copy exported trial balance into the “Trial Balance” tab.
Step 5: Calculate net income.
You can find more detailed instructions on how to use our profit/loss statement template upon download. If you’re uncertain about financial reporting or have complex accounting needs, consulting with a qualified accountant or financial professional is recommended.
P&L statement templates are typically prepared on a monthly, quarterly, or yearly basis.
The purpose of a profit/loss statement template is to provide a standardized format for summarizing the revenues, costs, and expenses incurred by a business during a given period. The P&L statement template aids in assessing financial performance and supporting decision making.
P&L statement templates can vary depending on industry, company size, and accounting practices. A typical profit and loss statement template will include the following information:
Yes, download our profit and loss statement Excel template. Then in Google Sheets, follow these steps: