Profit and Loss Statement Template

Ready-To-Use Profit And Loss Statement Template

Profit And Loss Statement Template in Excel, OpenOffice Calc & Google Sheet to analyze and compare business performance for a given period.

In simple terms, it summarizes income and expenses that help you to find net earnings for your business.

Download Profit and Loss Statement Template (Excel, OpenOffice Calc, & Google Sheet)

Click on the button below to download your desired file format of Paycheck Calculator:

Microsoft Excel OpenOffice Calc Google Sheet

How To Use Profit And Loss Statement Template?

There are 3 different types of Profit and Loss Statement Templates:

  • Simple Profit and Loss Statement
  • Profit and Loss Statement for SMBs(Small and Medium Businesses)
  • Corporate Profit and Loss Statement

Each P & L Statement consists of different heads based on the type of business activity.

  1. Download the desired file format
  2. Insert the data in blank cells.
  3. Don’t insert data in light grey cells as they consist of a formula.

Your Income Statement is ready to print.

What Is Profit And Loss Statement?

Profit and Loss Statement is one of the financial statements to finalize accounting at the end of every fiscal year. It is a summary of the company’s revenues, costs, and expenses. This helps us to derive the net profit/loss during a specific period.

A Profit and Loss Statement is also known by following names:

  • Income Statement
  • Statement Of Operations
  • Statement of Financial Results
  • Earnings Statement
  • Expense statement

Two Methods To Prepare Income Statement

You can prepare an Income Statement by two different methods: Single-step Method and Multiple-step Method. Companies complying with GAAP accounting standards use both methods to prepare their income statements.

Let us understand each in brief.

Single-Step Profit and Loss Method

The single-step method provides a simplified snapshot of the revenues and expenses of the company. It merely takes into consideration the revenues and expenses of the company to define the bottom line profit or loss.

In simple terms, it sums up all the revenues and deducts the expenses to get net profit or loss. Generally, small businesses use this method to prepare their P & L Statement as it is easy.

This method doesn’t provide detailed information about the revenues and expenses. As it doesn’t provide information on gross margin and operating margin, it makes it difficult for the investors to determine the source of most expenses.

Eventually,  the investors cannot predict the sustainability of profits. Hence, investors don’t prefer it. it is not preferred of companies

Formula Single-Step Profit and Loss Method

Net Revenues – Expenses = Net Income 

Multiple-Step Profit and Loss Method

It is mandatory for all the companies listed on stock markets to prepare their Income Statement using the multiple-step method.

In this method, a detailed overview of revenues and expenses is provided that helps in a deeper analysis of gross margins and operating margins. Thus, it provides a more accurate financial position as compared to the Single-step method.

Generally, investors prefer P & L Statements by this method. Due to the specificity, investors get a sharper view of the operational effectiveness of the business.

Formula Multiple-Step Profit and Loss Method

Revenues – Expenses – Indirect Expenses – Taxes + Other Income = Net Income or Loss

Revenues = Revenue from sale of products + Revenue from sale of services + Other Operating Revenues + Other Opearational Income

Expenses = Cost of Materials Consumed + Purchases of Stock-in-Trade + Changes in inventories of finished goods + Stock-in-trade and work-in-progress + Excise duty + Employee Benefits Expense + Other Expenses

Indirect Expenses = Finance Costs + Depreciation and Amortisation Expense

Tax Expenses = Current Tax + (Excess)/Short Tax provision for earlier years + Deferred Tax 

Other Income = Benefit from Defined Benefit Plan + Tax on Defined Benefit Plan + Gain/Loss on investments in equity instruments + Gain/Loss on investments in debt instruments + Income tax benefit on investments in debt instruments 

Purpose of P & L Statement

The purpose of the Income Statement is different from different perspectives. For an investor, it helps them to look into companies financial health to make timely decisions.

For a lender, it helps them to see the ability of the company to pay interest and the principal amount.

Whereas for a company, it helps to determines how their business generates profit or loss. It helps them to adjust the prices of products based on profitability. Moreover, it helps to keep provision and reserves depending on the financial health of the company.

Components of Profit And Loss Statement Template

This template consists of 8 sheets:

  1. Yearly, monthly, and printable Simple Profit and Loss Statement – 3 sheets
  2. Yearly, monthly, and printable Profit and Loss Statement SMBs- 3 Sheets
  3. Corporate Profit and Loss Statement – 2 sheets

Simple Profit And Loss Statement Template – Yearly

Simple Profit and Loss Statement

Simple Profit and loss template consists of 3 sections: Income, Other Income, and Expenses.

The income section consists of the following heads:

Gross Sales
– Goods Return
– Discounts
– Bad Debts
– Cost of Goods Sold – COGS
Income From Revenue

Net Income from Revenue is derived by subtracting goods return, discounts, bad debts provision, and COGS.

The Other Income section consists of the following heads:

Interest Received on Balance Accounts
Rental Income from Properties
Income from Miscellaneous Sources

This section is for income from sources other than operational activities.

The Expenses section consists of the following heads:

Payroll Expenses
Advertising Expenses
Marketing Expenses
Office Expenses
Utilities
License Fees
Interest Paid on Loans
Insurance Premiums
Other Miscellaneous Expenses

These expenses include all the operational expenses of the company. It uses the following formula:

Net Profit or Loss = Gross Revenue – Total Expenses – Taxes

In the end, insert the income tax expenses. The template automatically calculates Net Profit or Loss for you.

Simple Profit And Loss Statement – Monthly

Monthly Simple Profit and Loss Statement

For ease of use, you can also use the monthly Simple P & L Statement. Insert the monthly figures and it will calculate the totals for you.

With the help of this template, you can prepare month-wise quarterly, half-yearly, and yearly P&L statements.

Printable Simple P & L Statement

You can use this printable blank Simple Income Statement. Just click on the image and download:

Printable Simple Profit and Loss Statement

Profit And Loss Statement Template SMBs – Yearly

Profit and Loss Statement - SMBs

Usually, Small and medium businesses have different kinds of revenues and expenses to report. Hence, we have prepared this statement of earnings keeping those activities in mind.

This template consists of 4 sections: Revenue, Cost of Goods Sold (COGS), Operating Expenses, and Profit and Loss Summary.

The revenue section consists of the following heads:

Sales
– Sales Return
– Discounts
– Bad Debts

Net revenue is derived by subtracting sales return, discounts, and bad debt provision from Gross Sales.

The COGS section consists of the following:

Raw Material
Labor Expenses
Overhead Expenses

The template derives COGS by adding up raw materials, labor expenses, and other overhead expenses. Subtracting COGS from Revenue gives Gross Profit.

The Operating Expenses section consists of the following:

Payroll Expenses
Advertising Expenses
Marketing Expenses
Repair & Maintenance
Rent/Lease Expenses
Depreciation
Interest Paid on Loans
Insurance Premiums
Other Miscellaneous Expenses

Subtracting Operating Expenses from Gross profit gives us Earnings Before Interest and Taxes(EBIT).

The P&L Summary section consists of the following:

Earnings Before Interest and Taxes – EBIT
Interest Income
Other Income
Less Income Tax

Deducting interest, other income, and taxes from the EBIT gives us Net Profit/Loss for the company.

Profit And Loss Statement For SMBs – Monthly

Monthly Profit and Loss Statement - SMBs

For ease of use, you can also use the monthly P & L Statement for SMBs. Insert the monthly figures and it will calculate the totals for you.

With the help of this template, you can prepare month-wise quarterly, half-yearly, and yearly P&L statements.

Printable P & L Statement SMBs

You can use this printable blank Income Statement for SMBs. Just click on the image and download:

Printable Profit and Loss Statement - SMBs

Corporate Profit And Loss Statement Template

Profit and Loss Statement - Corporate

Usually, Corporate P & L Statement contains 2 years of data for the investors to compare the progress of the company. It consists of 5 sections: Operating Revenues, Operating Expenses, Non-Operating Expenses, Tax Expenses, & Other Comprehensive Income.

Operating Revenue Section consists of the following heads:

Revenue from sale of products
Revenue from sale of services
Other Operating Revenues
Other Income

The sum of all the above items equals total income.

Operating Expenses section consists of the following heads:

Cost of Materials Consumed
Purchases of Stock-in-Trade
Changes in inventories of finished goods
Stock-in-trade and work-in-progress
Excise duty
Employee Benefits Expense
Other Expenses

The sum of all the above items equals total expenses.

The difference between total income and total revenue is the net revenue. It is known as EBITDA. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

Non-Operating Expenses include:

Finance Costs
Depreciation and Amortization

Subtracting this from EBITDA gives us Profit Before Tax.

Tax expenses include:

Current Tax
(Excess)/Short Tax provision for earlier years
Deferred Tax

Subtracting this from Profit Before Tax gives us Profit After Tax.

Yet, the calculations aren’t finished. We need to add income from the OCI section. OCI stands for Other Comprehensive Income. These incomes are added incomes from non-operating sources such as tax benefits from the government, returns of Benefit Scheme of Employees invested, etc.

Other Comprehensive Income sections usually include:

Benefit from Defined Benefit Plan
Tax on Defined Benefit Plan
Gain/Loss on investments in equity instruments
Gain/Loss on investments in debt instruments
Income tax benefit on investments in debt instruments

This may vary from company to company. It should be kept in mind that you need to insert negative figures with negative signs wherever subtracted.

Adding this to the Profit After Tax gives us Net Profit or Loss of the company.

Printable Corporate Profit And Loss Statement

You can use this printable blank Income Statement for corporates. Just click on the image and download:

Printable Profit and Loss Statement - Corporate

How to Analyse Profit and Loss Statement?

There are two ways to analyze an Income Statement or Profit and Loss Statement. One is Horizontal Analysis and another is Vertical Analysis.

Horizontal analysis helps to know the percentage changes in corresponding items over a period. Whereas the Vertical analysis helps to know how the proportion in the percentage of incomes, expenses, and taxes against Total Sales Amount.

Based on the above data, many companies also use trend analysis to further investigate the differences.

In general, an income statement helps to know the total revenue growth as well growth in profits margins over a specific period.

Moreover, an increase in taxes affects the profits of the company. Similarly, depreciation and amortization expenses also affect profits.

Furthermore, extensive pay rises also play a major role in a company’s income structure. It increases your operating cost and hence decreases your profits.

Frequently Asked Questions

What is the difference between a Income statement and a balance sheet?

The Income Statement shows the income, expenditures, and profitability over a period of time whereas the balance sheet provides an overview of assets and liabilities at the end of the fiscal year.

What is Profit And Loss Account Debit Balance?

An owner is a different entity from the business. Profits generated by the business belong to the stakeholders. Thus, the business is liable for the distribution of profits. Similarly, when a business incurs a loss, it is born by the owners. Hence, it becomes a business asset and the owner owes the business of that amount.

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