A profit and loss statement (P&L) is a summary of income and expenses for your business.

The P&L will inform you whether your business made or lost money for the month under review.

Example profit and loss statement

  Total revenue $ 1,000,000 100%
Less Cost of Goods Sold $      426,200 42.6%
  Gross Profit $ 573,800 57.4%
         
Less Expenses    
  Accounting and legal fees $ 11,700  
  Advertising $ 15,000  
  Depreciation $ 38,000  
  Electricity $ 2,700  
  Insurance $ 15,200  
  Interest and bank charges $ 27,300  
  Postage $ 1,500  
  Printing and stationery $ 8,700  
  Professional memberships $ 1,800  
  Rent for premises $ 74,300  
  Repairs and maintenance $ 21,100  
  Training $ 6,900  
  Vehicle operating costs $ 20,000  
  Wages and salaries $ 223,500  
  Workers compensation $ 6,500  
  All other expenses $          14,100
Less Total Expenses $        488,300 48.8%
Equals Net Profit  $ 85,500 8.6%