A profit and loss statement is an important piece of document to display the financial health of the business. It can be used for any size of business.
A profit and loss statement can be generated on a monthly basis or a yearly basis to track the company’s financial status and operation. It is an important piece of financial document that reflects the business’ financial state.
A profit and loss statement states whether the business is making money or not, and where the money is spent. It is usually performed on an annual basis depending on the financial year of the business.
A profit and loss statement is normally drawn up on a page unless the business has plenty of components to display in its major columns of income and expenses. There would be a net income and net expenses at the end of each column. At the very bottom is the Profit or Loss column which reflects the final financial status of the company.
The profit and loss statement template may contain:
* Company Name
* Company Address
* Financial year of company
* Total income
* Total expenses
* Profit or Loss
The Income and Expenses figures are place on the second column while the Total Income/Total Expenses and Profit/Loss figures are placed on the third column.
Income is accrued from sales while Expenses are made up from depreciation, wages, charges and others.
Consider the attached sample template for your convenience.