A Profit and loss statement
is a key reporting of your business
activities showing what its income and expenses are for a particular
time period in question.
Armed with this information you
are better able to make business
decisions based on the numbers you see and the potential there may
be for improvement in the various areas involved.
This sort of an accounting report is easily generated on your personal
computer provided you are willing to maintain it with current information
of your business transactions. Its certainly cheaper than using a
book-keeper or accountant and will ensure you are able to keep up
with the changes in your business cycle - as they evolve.
Percentages shown below are in relation to total Sales Revenue
Except for Cost of goods sold section - where they are based
on cost of sales within each category
|Sample P & L (Operating Statement or Income statement)|
|Mom $ Pop TV & Stereo Retail store|
|Monthly Profit and Loss Statement for Month in Year|
|Cost of goods sold|
|Salaries and commissions||$6000||9.87%|
|Rent (with included utilities)||$4000||35.91%|