Profit and Loss Statement
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This profit and loss statement template is a ready made template that people can use to prepare their company's financial report. The profit and loss statement is defined as the financial statement included in the series of accounting cycles generated in particular accounting period in which presents all elements of revenue and expenses of the company that show the actual condition of net income or net loss of the company.
Profit and lost statement or also called income statement usually has the following elements:
- Cost of Sales. The amount to expense to purchase saleable products. Other term is Cost of Goods Sold.
Gross Profit/Loss = Revenue - Cost of Sales
- Operating Expenses.
Business Profit/Loss = Gross Profit/Loss - Expenses
- Other Income/Tax Expenses
Net Profit/Loss = Business Profit/Loss - Other Income/Tax Expenses
You may find elements above in Trading/Retail Company's statements. For Service Company, company who provides services as its main product, Cost of Sales is usually not reported as separate element. They are blended as parts of operating expenses. Examples of these type of companies are consultants and artists.
There are other income statement models you can find in many reports since above elements are general. But, all of those models will yield Net Profit/Loss at the end of the statement to show financial status of reported companies.
Profit and Loss Statement Template
This template is part of integrated accounting system spreadsheet for trading/retail companies. You will see above general elements inside this template. Since this is individual template, you may need to type summary of your company's transaction into the statement directly. Similar with balance sheet and cash flow statement template, you have options to define category names by typing their account codes. You can type it in Chart of Accounts worksheet. Then, you can move to Profit/Loss statement format worksheet to set your Profit/Loss statement up.
There are four big parts where you can type respective category values in debit/credit columns. In Revenue part, you can write values in debit and credit columns. And there is balance column that will sum those values. In Cost of Sales part, you need to fill value for Beginning and Ending Inventory. There are samples inside the template to help you understanding this template better. Samples are written with assumption that all products are reported as single income and CoGS categories. Beginning and Ending inventory should be written once of all type of products. You may modify this template to accommodate multi products report. This multi product feature is available in integrated accounting system version.
All inputted values will be pulled into PnL report 1 worksheet with similar format automatically. In PnL report 2 worksheet, you will get those debit/credit columns are merged into one column with red color are marked for negative values. PnL report 3 worksheet is a blank worksheet where you can create your own report.
The purpose of Income Statement statement can be summarized as follows:
- To know the amount of tax to be borne,
- To check the history of profit/loss gains from time to time as an evaluation for company management,
- To check the efficiency and effectiveness of the business based on the value of business costs.
This template should help you to prepare your Profit and Loss Statement, but if you want to generate it automatically, you may need an integrated accounting system spreadsheet.
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