Simple Profit and Loss Statement Template

Businesses need to keep an accurate record of their income and expenses. These financial statements reflect the overall performance of the company and serve as key references when taking vital business decisions.

What is A Profit & Loss Statement?

A Profit & Loss Statement is a document that depicts the financial health of a company over a certain period of time. It reflects the profits the business has made, as well as the losses it incurred after the expenses are deducted from the revenue.

Creating a monthly P&L statement will give you a good view of your operational expenses, which is a major component for making revenue and expenses projections. It is also one of the necessary documents that investors and creditors look at when evaluating your credit-worthiness and ability to manage your company’s resources.

Simple Profit & Loss Statement Template for Excel

Whether you’re operating on a smaller scale or at the corporate level, preparing a profit & loss statement regularly will help you keep costs down and maintain a good profit margin. Larger companies and organizations have dedicated software for their accounting tasks, but for SMEs and startups, an Excel-based profit & loss statement template is often enough.

The Simple Profit & Loss Statement template will make organizing your company’s finances a whole lot easier. You only have to enter the required data, and the template will automatically calculate the totals for you!

There is also a dashboard on the first page of the spreadsheet that gives you a summary and comprehensive overview of your business financial health.

The Simple P&L Statement template is made up of six worksheets, namely:

Sheet 1: Dashboard

The Dashboard contains a summary of important data in the other four worksheets. It also calculates and displays your Gross Profit, Total Operating Expenses, Income from Operations, and Net Profit.

The Net Profit is what you get after you subtract all your expenses from your income. It is the bottom line of your profit & loss statement.

A positive net profit means your business is earning more than it spends.

Sheet 2: Sales

The Sales worksheet is where you record all your sales revenue from your products and/or services.

Using the sales figures that you’ve entered, the template will automatically calculate your Total Sales Revenue.

Sheet 3: Income

The Income worksheet holds all your other sources of income for the period. This may include money from selling equipment, tax refunds, etc.

Using the income figures that you’ve entered, the template will automatically calculate your Total Sales Income.

Sheet 4: Expenses

The Expenses worksheet includes the costs you incur during your day-to-day operations, such as wages and salaries, utilities, insurance, repair and maintenance, advertising expenses, etc.

You can edit the worksheet to reflect your business’s regular expenses.

Using the expense figures that you’ve entered, the template will automatically calculate your Total Operating Expenses.

Sheet 5: Taxes

The Taxes worksheet is where you list down the type and amount of taxes that your business has to pay – income taxes, payroll taxes, real estate taxes, etc.

Using the tax figures that you’ve entered, the template will automatically calculate your Total Taxes.

Sheet 6: Categories

Use the Category worksheet to add categories and update the corresponding worksheets with entries. The other worksheets will automatically update when you add/delete a category.

Advantages of Using A Profit & Loss Statement Excel Template

User-friendly. Excel is easy to use and easy to learn. It requires almost no learning curve at all, so you don’t have to spend precious time and resources for training your staff on how to use the program.

Cost-effective. Excel has very minimal upfront and ongoing cost, and its core functionalities rarely need upgrading.

You do not have to register, sign up, or pay a membership fee to use the program. Most Excel templates, like the Simple Profit & Loss Statement, can be downloaded online for free!

Data analysis. Excel is packed with functions that you can use to perform various analytical tasks on data. The program also has dataset comparison and tabulation features that allow you to evaluate data from different periods for a clearer insight into your business’s performance.

Customizable reports. Excel templates can be customized as needed. You can add more categories and data points, or even create an entirely new worksheet without having to create a new one from scratch.

In fact, you can turn the Simple Profit & Loss Statement into a Profit & Loss Projection Statement by just changing the title.

Graphical data display. Excel’s Charts section allows users to transform data sets into various types of graphical displays like pie charts or bar charts. Graphical data representations can help business managers and other key personnel gain a better insight and understanding of the data at hand.

This feature also comes really handy when trying to communicate and explain data to other people.

Streamlined process. Organizing and tracking income and expenses is more efficient with an Excel-based Profit & Loss Statement. It’s often hard to get your head around the numbers, but this template will help you stay on top of your business’s financial health with less trouble.

Click here to download the Simple Profit & Loss Statement template.

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