Profit and Loss Statement Template

While a profit and loss statement tracks a business’s revenues, expenses, and net profit or loss over a specific period, a balance sheet provides a snapshot of financial health at a given moment.

A P&L statement focuses on profitability, showing whether a business is making or losing money. In contrast, a balance sheet lists assets, liabilities, and equity, detailing what a company owns and owes. Both are essential financial reports, but they serve different purposes in financial analysis and decision-making.

Why Is a Profit and Loss Statement Important?

A profit and loss statement helps businesses:

• Track income and expenses to assess financial health
• Identify ways to reduce costs and improve profitability
• Support loan applications by proving revenue and expenses
• Simplify tax reporting with accurate financial records

Who Uses a Profit and Loss Statement?

A P&L statement is useful for:

• Small businesses tracking profits and losses
• Freelancers managing self-employment income
• Companies seeking loans or investment
• Entrepreneurs evaluating business growth

A profit and loss statement tracks your business’s income and expenses over a set period. Follow these steps to create one:

1. Enter business details
2. Record income
3. List expenses
4. Calculate net income
5. Generate your statement

Use our document editor to guide you through the process. Simply enter your details, fill out each section, and download your completed P&L statement in PDF or Word format—ready to use whenever you need it.

1. Enter Your Business Information

Start by adding key business information:

• company name
• date issued
• business address
• statement reporting period, including start and end dates

2. Record Revenue Sources

List all sources of revenue during the reporting period:

• Sales: Revenue from products or services sold
• Services: Earnings from any service-based work
• Interests: Any interest earned from accounts or investments
• Miscellaneous: Other income not covered above

3. List Business Expenses

Record all operating expenses during the period, categorized as follows:

• Advertising: Marketing and promotional costs
• Depreciation: Value loss of assets over time
• Insurance: Business insurance premiums
• Professional fees: Payments to accountants, consultants, or legal professionals
• Repairs and maintenance: Costs for equipment or property upkeep
• Office supplies: Items needed for daily operations
• Wages: Employee salaries and wages
• Utilities: Expenses for electricity, water, internet, etc
• Miscellaneous: Any other business-related expenses

4. Calculate Net Income

Determine your profitability by completing these calculations:

1. Total Income = Sales + Services + Interests + Miscellaneous
2. Total Expenses = Sum of all listed expenses
3. Net Income Before Taxes = Total Income – Total Expenses
4. Tax Amount = Net Income Before Taxes × Tax Rate
5. Net Income = Net Income Before Taxes – Tax Amount

5. Generate Your Statement

Rather than formatting everything manually, you can use our document editor to streamline the process. It will walk you through each section step by step, ensuring all necessary details are included. Once finished, you can download your completed profit and loss statement in PDF or Word format—ready to share with accountants, lenders, or internal teams.

A profit and loss statement is essential for tracking income, expenses, and overall business performance. Keeping accurate records supports better financial planning and decision-making.

Our document editor makes it easy to create a structured profit and loss statement. It guides you through each section step by step, ensuring accuracy. Once completed, you can download it in PDF or Word format—ready for tax filings, budgeting, or loan applications.