Every business is set up to make money regardless of its size. It grows from small to big when it garners more profit over time depending on its marketing strategies and product offerings.
Every business would require a monthly profit and loss statement to track its financial status and its operation every month. Hence, the monthly profit and loss statement is an important piece of financial document that reflects the business’ financial state; it shows whether the business is making money or not, and where the money is spent.
A monthly profit and loss statement is drawn up with 12 columns, each column recording the various months of the year. At each column, it records the revenue and operating expenses with a Year-to-date column at the far right.
The revenue section of the monthly profit and loss statement records all the sales that have been conducted by the company in every month. It takes off the purchase of goods or materials to obtain the net revenue to the company. The operating expenses section identifies the components that incur a cash outflow like salaries, rent, travel, advertising and depreciation expenses.
The monthly profit and loss Statement template may contain:
* Company Name
* Company Address
* Profit and Loss Year
* Operating expenses
* Months of the Year
* Year to date
* Net Income
An accurate record entry and keeping of this document is crucial.
Consider the attached sample template for your convenience.