Free Profit and Loss Statement Template

4 Month P&L example 2

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.

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Let’s talk about Profit and Loss Statements

  • How to create a Profit and Loss Statement
  • Download your free Profit and Loss Statement Template
  • How to use the Google Sheets Profit and Loss Statement Template
  • Create and forecast Profit and Loss Statements in minutes with a Profit and Loss Template
  • Using Brixx for Profit and Loss Statements, forecasting, and more

What is a Profit and Loss Statement?

The Profit and Loss Statement is the financial statement that shows the division of your items within your business and a good Profit and Loss Template can help your business summarise the financial performance of your organization successfully over a period of time.

Whether this time period is monthly, quarterly, or annually, small business owners can use a Profit and Loss Template to track how their business has been performing based on historical and current data.

Being one of three main financial statements, the P&L statement differentiates from a Cash Flow Statement as it is based on the accrual of expenses and revenues for accounting purposes rather than for payment by summarising them over a specific time period. It should also be noted that the P&L Statement differs from the Balance Sheet, which is a summary of the company’s assets and liabilities.

Screenshot of a 4-month P&L example from the free Profit and Loss Template for Excel and Google Sheets from Brixx software

What is a good Profit and Loss Template?

  • It has equations to calculate totals
  • You are able to place your figures into the correct financial accounts
  • It creates a professional financial report with ease – rather than expertise!

The Brixx Google Sheets Profit and Loss Statement Template is suitable for businesses of all sizes as you are able to remove levels of detail to suit your business. If you haven’t yet, download your free P&L Statement Template now.

How to create a Profit and Loss Statement

For small to medium-sized enterprises (SMEs), creating a Profit and Loss Statement can be a time-consuming and costly process. While helping you to measure the performance of your business, the P&L statement can also be used to secure financing, calculate tax payable, and more.

Essentially, a P&L Statement shows directors and investors whether or not the company made money during a specific period, which is why it is important to be as accurate as possible when creating your reports. While many companies choose to have external accountants process their data, businesses are able to save time and money by using a Profit and Loss Template, or going a step further and using specialised software – like Brixx.

Download your free Profit and Loss Statement Template

Most people in your business probably already use spreadsheets and Google Sheets is user-friendly for beginners. As a result, the system is easy to maintain and onboarding your team is quick and simple.

Our free 12-month Profit and Loss Template for Google Sheets 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.

How to use the Google Sheets Profit and Loss Statement 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

revenue annotation

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.

Simple as that!

Create and forecast Profit and Loss Statements in minutes with a Profit and Loss Template

The creation of a Profit and Loss Statement in Google Sheets or in Excel using historical business data, 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.  To get a bit more technical, it shows 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.

Why it’s important to forecast your Profit and Loss statement

The point of any forecast is to explore how you get from your current financial position to where you want to be. You can use a forecast of this report to help identify the changes or growth in sales needed to become profitable (if you aren’t yet).

It helps you analyse this in detail by presenting every financial activity that could create a profit or a loss, broken into categories.

Screenshot of a free Profit and Loss Statement Template for Google Sheets from Brixx Software

You might be wondering why you should forecast your profit and loss over your cash flow. The short answer is, you shouldn’t. You should forecast both!

Each one specialises in presenting a different angle of your business. You don’t really have a full picture of your company’s financial health if you just look at one in isolation.

For example, p&l differs from your cash flow because it includes non-cash items (like sales you’ve invoiced but not yet received the cash for). It also excludes cash items that have no impact on your profitability (such as VAT).

By purely looking at activities that impact profit, it gives you a clearer picture of business performance that a pure cash flow based approach can obscure.

If you’d like an easy way to track or forecast your profit & loss, cash flow and balance sheet at the same time, take a look at our financial forecasting software.

Using Brixx for Profit and Loss Statements, forecasting, and more

While we encourage you to download our 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, using simple inputs, you can 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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