Free Profit and Loss Statement Template
Brixx has created a 12-month profit and loss template to help you measure the efficiency of your business, a key indicator for investors. It’ll also forecast future patterns of how your business will perform year on year.
This free, downloadable profit and loss statement template can be modified according to your business needs while allowing you to review your business performance. Sometimes called an income statement or income and expenditure statement, a profit and loss statement is an essential tool in your business’ arsenal.
Download the free profit and loss template
Our free 12-month profit and loss template allows you to pull together income and expenses data from across the company to generate your P&L Statement.
The P&L template can be used by companies of all sizes. It provides teams with a user-friendly way to collect and share income and expenses data while providing an overview of your company’s profitability.
What is a profit and loss statement?
A profit and loss statement, also known as an income statement, is a financial report that summarizes a company’s revenues, costs, and expenses over a specific period of time, such as 6 months or a year.
The purpose of a profit and loss statement is to show whether a company is making a profit or a loss during the period covered by the statement.
The profit and loss statement is an important tool for business owners and investors to assess the financial health of a company and make informed decisions about its future.
What are the parts of a profit and loss statement?
A profit and loss statement will typically includes the following sections:
This section shows the total amount of money the company earned from sales or other sources of income during the period.
Cost of goods sold
This section shows the direct costs associated with producing the goods or services that the company sells.
This section shows the indirect expenses associated with running the business, such as salaries, rent, and utilities.
This section shows the company’s overall profit or loss for the period, which is calculated by subtracting other income and expenses from operating profit.
How to use this simple profit and loss template
- Step 1: Hit file, then “save as” for Excel or “make a copy” for Google Sheets
- Step 2: Fill out each section by adding your forecasted figures in the white cells
- Step 3: Pro-tip: if you’re not sure what each section means, hover over the cells to get a brief description of what you should enter there
- Step 4: Remove or add costs that are applicable to your business
- Step 5: Formulae will calculate totals automatically
- Step 6: Duplicate the sheet and add different figures into the white cells to test different “what-if” scenarios
- Step 7: Check out the charts at the top of the spreadsheet to see your total revenue, gross profit, operating profit & net profit projections visualised.
What a P&L will tell you
The creation of a profit and loss statement allows you to see a summary of your revenue and expenses over time.
It specialises in outlining the profitability of your business. Simply put, it can demonstrate how successful your business is at making money and can show you whether your business model is working or not.
In addition to being able to see this summary and use it in conjunction with a cash flow statement and balance sheet, business owners can take it a step further by producing forecasts of these key statements.
Profit and loss statement formula
The formula for a profit and loss statement (also known as an income statement) is:
Revenue – Cost of Goods Sold – Operating Expenses = Net Income
In other words, to calculate your net income, you start with your total revenue and subtract your cost of goods sold (the direct costs associated with producing and selling your product or service) and your operating expenses (such as salaries, rent, utilities, and marketing expenses). The resulting figure is your net income, which represents the profit or loss your business has generated over the given period of time.
The profit and loss statement formula can be represented as:
Net Income = Revenue – Cost of Goods Sold – Operating Expenses
Get help with your P&L with Brixx
While we encourage you to download the profit and loss template, Brixx can do more to help business owners effectively map out their financial future.
Brixx is a financial modelling tool that uses simple inputs to help forecast the 3 key financial statements up to 10 years into the future. All the reports and charts generate simultaneously which is a serious time saver.
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