Profit and loss statement template

A P&L for small businesses and freelancers with a column for each month and a total for the year. Enter revenue and costs; the statement works out gross profit, gross margin, operating profit, a placeholder for tax, net profit and net margin, and shows losses in red. A matching balance sheet compares two years of assets, liabilities and equity and checks that they balance.

Templates

Profit and loss statement (Excel spreadsheet): A 12-month profit and loss statement (P&L) template: revenue, cost of sales, gross profit, operating expenses, net profit and margins.
Balance sheet (Excel spreadsheet): A balance sheet format in Excel comparing two years of assets, liabilities and equity, with totals and a check that it balances.
Expense report (Excel spreadsheet): An expense report template for claims: dated expenses by category, totals per category, missing receipts flagged and the amount to reimburse.
Annual budget (Excel spreadsheet): A yearly budget planner with 12 monthly columns for income and spending, yearly totals, and a monthly net that turns red when you overspend.

How to use these templates

Replace the company name and year, then rename revenue and expense lines to match your business.
Enter each month’s revenue and costs from your bank statements or accounting records.
Replace the flat 25% tax placeholder with your real tax figures.
Read across the margin rows to see how profitability changes month to month.

Reading a profit and loss statement

Gross profit shows whether you make money on what you sell; operating profit shows whether the business as a whole does.
Watch the gross margin. If it shrinks while revenue grows, costs are rising faster than prices.
Record income and costs in the month they relate to, not when cash moves. The cash view belongs in a cash flow statement.
In India this is called the profit and loss account; in the US, the income statement. They are the same report.
Compare each month with the same month last year to see past seasonal swings.

Frequently asked questions

What is the difference between a P&L and a balance sheet?

A profit and loss statement covers a period and shows income, costs and profit. A balance sheet is a snapshot on one date of what the business owns and owes.

Can I use it for a sole trader or freelancer?

Yes. Delete the cost of sales lines if you sell services only, and the gross profit equals revenue.

Is this a replacement for accounting software?

It is a clear report for planning and for sharing with a lender or partner. For filing taxes, your accountant may need records from accounting software.

Why is tax a flat 25%?

It is a placeholder so net profit is not overstated. Replace it with your actual tax, which depends on your country and business type.