What is Profit and Loss Statement?

Profit and loss statement is same as the income statement. The purpose of making this document is to record that how much the company has invested and what profit did it made. Further, where its loss and what can be done to resolve it. This document is made either on a monthly basis or yearly. The purpose is the same to keep a check on the company’s effort. As told before, a company’s fame isn’t something that is done by one person. It is a collective effort that engages everyone to gather their ideas for the betterment of the company.

When you invest in a company then it’s the responsibility of that company to maintain this record. Every year the income statement is issued so that it can tell where the company stands. What parts made it go up and what makes it go down.

The list of expenses that these documents consist of includes; rent, electricity, accounting, repair and maintenance, advertising, insurance, depreciation and so on. All in all, it keeps a check on every small thing in which the money is invested.

Therefore, in the end when the budgeting time arrives, it’s easy to have a quick look that in which month the company has risen and in which they fall. This will also give an idea that what steps should they take in order to make it more profitable.

There are different samples available online, you can get it free and compose your own one following the steps as it serves in keeping the record of the company.

How to Make a Profit and Loss Statement

This template plays an important role for managing the finances and accounts of any organization. While running a business or establishing a new company, the most important thing that you need to have is a document that could contain your profit and loss details for keeping a track of your finances properly. You can note down all such details on a profit and loss statement template easily. This template is designed specially keeping in mind the requirements of a particular business. Hence, you need not to worry about covering your accounts and finances in it. It basically notes down the expenses along with the revenue of a company and the main profit and loss is determined with the results obtained from these two features. Due to its importance for the finance department of a company this document needs to be extremely professional and with a profit and loss statement format you need not to worry about in terms of the professionalism.

Preview image of this Profit and Loss Statement Template and download link can be found as below.