Profit and Loss Account Free excel template is a simple template that helps you prepare your Income Statement within minutes.
Furthermore, It enables you to summarize the revenues, costs, and expenses that a company incurs a specified period. Usually, companies prepare this statement quarterly and yearly, and sometimes even monthly.
What is Profit and Loss Account ?
Profit and Loss Account is the first financial statement prepared before preparing the Balance Sheet. It is also known as the P&L account or Income Statement.
The Income Statement provides a complete summary of revenue generated and expenses incurred by a company, which in turn gives an insight into a company’s financials. It helps us to define whether the company is making profits or incurring losses.
In simple terms, the profit and loss statement provides a detailed look into the financial health of a company during the accounting year.
Purpose of preparing Profit and Loss Account
- It provides a brief understanding of the financial health of a company.
- It helps to project revenues.
- Forecast Expenditures.
- Compare actual performance with projection.
- Maintain provision and reserves depending on the financial health of the company.
What does a P&L statement tell you about your business ?
A profit and loss statement lets you know exactly how your business is doing. Often used to determine both strengths and weaknesses in businesses, a profit and loss statement can also tell you the following –
- Whether your products or services are profitable ?
- Whether your business is trending in the right direction ?
- How healthy your business is overall ?
Download and use Profit and Loss free Excel template
To use this free Profit and Loss free excel template, you should have Microsoft Office/ Microsoft Excel installed in your system. After installing Excel or Spreadsheet, download the zip file of this template.
Now, extract the template using WinRAR or 7Zip decompressing software. Once extracted, you can open the file using Excel and start entering data or customizing the template.