Free document template
Build a clear profit and loss statement
Bring the income and costs for one reporting period onto a page you can review. This blank worksheet separates revenue, the direct cost of what you sold and the expenses of running the business, then leaves room for your profit or loss. Microtra provides income, expenses, outstanding invoices and cash reports; accounting sync is coming soon.
Print the PDF to fill in by hand, or type into the blank fields in the editable DOCX.
Document preview
Profit and loss worksheet
From
[Your business name]
Reporting period and preparation
Period start
Period end
Currency
Accounting basis used
Prepared by
Records reviewed
Revenue
Service revenue
Product sales
Other business revenue - describe
Less refunds and sales allowances
Net revenue
Cost of goods sold or direct costs
Goods or materials used in sales
Direct labor allocated to sales
Other direct costs - describe
Total cost of goods sold or direct costs
Gross profit: net revenue minus direct costs
Operating expenses
Rent and workspace costs
Utilities and communications
Insurance
Advertising and marketing
Software and office supplies
Professional services
Staff costs not included in direct costs
Travel and vehicle costs allocated to the business
Other operating expenses - describe
Total operating expenses
Net profit or loss and review
Net profit or loss: gross profit minus operating expenses
Adjustments or classification questions for review
Supporting record references
Reviewed by
Review date
Business action to consider
Blank worksheet: calculate the subtotals from your records and enter them in the fields. Keep the same reporting period, currency and accounting basis throughout.
How to use the template.
- Choose a reporting period and gather the records behind it: sales, refunds, supplier bills and business expenses. Enter the currency and the accounting basis you use so the figures have a consistent meaning.
- Group your revenue by the way the business earns it, such as services and product sales. Subtract refunds and sales allowances to find net revenue. Use records for the selected period, with the treatment of unpaid invoices consistent with your accounting basis.
- Identify the costs directly associated with the goods or services sold. Subtract their total from net revenue to find gross profit. Use consistent categories so a cost appears once, either here or in operating expenses.
- Add the expenses of running the business, such as workspace, insurance, advertising and software. Subtract total operating expenses from gross profit to find net profit or loss: revenue minus direct costs minus operating expenses.
- Calculate each subtotal yourself and check it against the supporting records; this download supplies blank fields. Keep owner contributions, borrowing and withdrawals separate from ordinary business revenue and operating expenses for review with your adviser.
- Read the result alongside your cash position and unpaid invoices, then note a practical question to investigate, such as rising material use or an expense category that needs attention. Profit and cash available can differ.
- This worksheet is not tax or accounting advice. Use the linked IRS recordkeeping guidance and ask a qualified accountant to review the categories, accounting basis and any adjustments your business needs.
Sources.
Useful answers.
What period should I use for the statement?
Choose a period that helps you review the business, such as a month or quarter. Put the start and end in the header, and apply that same range to every revenue and expense entry.
Where do I put a cost that could fit in two sections?
Flag it in the review field and settle on a consistent classification. For example, labor directly associated with sold work may be tracked separately from office administration. Count each cost once so it does not reduce the result twice.
Is net profit the same as the money in my bank account?
They measure different things. A profit and loss statement groups income and costs for a period, while cash balances also reflect when money arrives and leaves, along with movements such as borrowing and owner withdrawals.
Will the downloadable form calculate the result?
Enter and check the calculations yourself. The PDF provides space to write or annotate, and the DOCX lets you adapt the fields in a compatible word processor.
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