Where Do I Get a Profit and Loss Statement?

A Profit and Loss (P&L) statement, also known as an income statement, summarizes a company’s revenues, costs, and expenses over a specific period. This financial report shows whether a business generated a net profit or incurred a net loss during that time. It is a key tool for understanding a business’s financial performance and health.

Key Information for Your Profit and Loss Statement

Creating a P&L statement requires gathering specific financial information, primarily categorized into revenues and expenses. Revenues represent the total income generated from business activities, while expenses are the costs incurred to generate that revenue. Selecting a specific time period, such as a month, quarter, or year, is the initial step for accurate reporting.

Revenue sources include sales of products or services, service fees, interest income, or licensing fees. This data is found in financial documents like sales invoices, cash register tapes, deposit slips, and bank statements. Tracking all income is crucial for a comprehensive revenue picture.

Expenses encompass the costs of running the business. Common categories include the cost of goods sold (COGS), which are direct costs of producing goods or services, and operating expenses. Operating expenses can involve rent, utilities, salaries, marketing, advertising, insurance, and professional fees. Information for these expenses is found on bank statements, credit card statements, receipts, and vendor invoices.

Generating Your Statement from Accounting Software

Accounting software provides an efficient method for generating a P&L statement once all financial transactions are accurately recorded. This automated approach simplifies the process, assuming your revenue and expense data are already entered into the system. Most accounting platforms offer a dedicated reports section where you can select the “Profit and Loss” or “Income Statement” option.

After navigating to the report section, choose the desired date range for the statement, such as monthly, quarterly, or annual periods. Some software allows customization, like selecting the accounting basis (cash or accrual) or filtering by specific departments. Once selections are made, the software processes the data and generates the report, which can be viewed, printed, or exported as a PDF or spreadsheet.

Compiling Your Statement Manually

Manually compiling a P&L statement is feasible for businesses not using accounting software. This process involves organizing and calculating financial data, often using spreadsheet software like Excel or Google Sheets. The P&L statement structure begins with total revenues, followed by a list of expenses, culminating in the net income or loss.

To begin, gather all revenue data for your chosen reporting period, such as sales receipts and bank deposit records, and sum these to determine your total income. Next, collect all expense data, including receipts, vendor invoices, and credit card statements, and categorize each type of expense. After itemizing and summing each expense category, calculate your total expenses. Finally, subtract your total expenses from your total revenues to arrive at the net profit or loss for the period.