The profit and loss statement is a simplified view of a company’s revenue and expenses for a specific accounting period. You can report a profit and loss statement on a monthly, quarterly or annual basis. Many self-employed individuals are required to provide a profit and loss statement, also called a P&L Statement, when seeking business loans or financing. You do not need an accountant to create a P&L statement. Create statements for your business at your convenience in minutes.
Create the header for your profit and loss statement either by hand, if you are writing the statement, or in the word-processing application of your choice. Title the report “Profit and Loss Statement” or “Income Statement.” On the next line, enter “For the reporting period ending (month) (year).” Center the two lines at the top of the page.
Create a section on the far left margin of the page labeled “Revenue” or “Income.” List every source of income for your business, slightly indented under the section title. If your business has only one source of income, you will only need one listing here. If there are multiple sources of income for your business, add a line at the bottom of the list titled “Total Income” or “Total Revenue” and list the sum of all of your income sources.
Create a section on the far left margin of the page labeled “Expenses.” List your expenses based on the major reporting categories of your accounting records. These categories will be things such as office expenses, advertising, employee cost, taxes and utilities. List each expense category and the applicable expense amount. Add a line at the bottom of the list titled “Total Expenses” and list the sum of all of the expense accounts.
Create a line at the bottom of the report labeled “Net Income.” Subtract the total expenses from the total income. If the number is negative, report it in parenthesis to show that it is a negative figure. A positive number constitutes revenue while a negative number reports a loss.
Tara Kimball is a former accounting professional with more than 10 years of experience in corporate finance and small business accounting. She has also worked in desktop support and network management. Her articles have appeared in various online publications.