The profit a business makes is very important. This is what keeps it running. It is important to know whether any profit is being made or not. If there is not much profit, then policies can be revised so that success can occur. It is necessary to be able to calculate profit and loss carefully.
What is a Profit Loss Statement Template?
A profit and loss statement template is able to summarize a company’s income as well as expenses and that for a certain period of time so as to figure out its net earnings for this period.
What to Include in the template?
If you need to create a profit loss statement template, you can consider the below points:
- Microsoft Excel– A good application to make this template in is Microsoft Excel. You can do calculations over here.
- Heading– Give the heading of the template. This can be something like “Profit Loss Statement.” Include the company name as well. Also, state the period that the Profit and Loss statement is for. This will make it clear to the reader.
- Calculate net sales– You should fill in the total sales, as well as any allowances that were made, on the worksheet. After you have done this, you can calculate the net sales.
- Cost of sales– It is important to fill in the cost of sales that occurred for the company. Do this on the worksheet.
- Gross margin– You will need to calculate the gross margin that the company had carefully. The selling expense, along with the general plus administrative expense, is the two kinds of expenses that are recorded in this statement.
- Important expenses– It is necessary to fill in the selling, general, as well as administrative expenses that the business had. This should be done on the worksheet as well.
- Net operating– On your worksheet, you should compute your company’s net operating profit that is present.
- Other information– You need to carefully enter any other income and other expense that the business had. This needs to be done on the worksheet. Calculate the Net Profit Before Income Taxes.
- Net Profit– You can finally calculate the net profit that the business had.
Advantages of the template:
A Profit Loss statement template has the following advantages:
- At one glance, it can give a summary of the important activities that a company has.
- It records the good news from sales as well as the news of expenses.
- It gives valuable information to managers along with owners such as the costs of any goods sold, gross margin, net profit, selling plus administrative expenses.
- Can be used to evaluate and also make adjustments to any operations.
A Profit Loss statement is important for a business and company, as seen above. It needs to be created carefully so that all those concerned can get to know of any profit and loss that is occurring clearly. You can consider the above points if you need to make this template.
Format: MS Excel 2007/+
File Size: 109 KB