Profit & Loss Statement Template in Excel

Description
This is a financial statement that is used to summarize the costs, revenues, and expenses that are incurred throughout a certain time period, typically a quarter or a year. These statements aim to provide important information about how well- or not- a company can make a profit by reducing costs, increasing revenue, or both together. The profit and loss statement is also known as the 'income statement,' 'the statement of profit and loss,' 'the statement of financial results,' 'the income and expense statement,' or the 'statement of operations.'

The most common name probably being the income statement, this statement is usually one out of three financial statements that each public company must issue every quarter and every year, alongside the cash flow statement and balance sheet. The balance statement is like a screenshot that demonstrates what is owed and owned at a single point in time, however the income statement- similarly to the cashflow statement- shows changes that have occured over a certain time period. It's worth comparing the cash flow statement with the income statement, because according to the accrual accounting method, revenues and expenses are able to be logged before cash actually exchanges hands.

The income statement generally follows a set form. It starts with the 'top line'- revenue- and then takes away business costs which include operating expenses, goods sold, interest expense, and tax expense. Net income is known as the bottom line on the statement, and can also be referred to as earnings or profit.

You should compare your profit and loss statements from different accounting periods, as the differences between each aspect on the sheet actually mean more than the actual figures. e.g. you may notice that the revenues of your company may be growing, however the expenses may also be growing and and at a faster rate.

This template allows input of own figures to make a personal profit and loss statement.

*Originally shared on kaas.ie*