How often should I prepare a P&L statement?

Monthly P&L statements give you the fastest feedback on business performance. At minimum, prepare one quarterly and annually. Annual P&L statements are required for most tax filings (Schedule C for sole proprietors, Form 1120 for corporations).

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

A P&L (income statement) shows revenue and expenses over a period of time and tells you whether the business was profitable. A balance sheet is a snapshot of assets, liabilities, and equity at a single point in time. Both are needed for a complete financial picture.

Do I need a P&L statement to apply for a small business loan?

Yes. Most lenders — including banks, the SBA, and online lenders — require at least two years of P&L statements for established businesses, or year-to-date P&L for startups. Lenders use them to evaluate revenue trends, expense control, and whether you can service the debt.

Free Profit and Loss Statement Template — Fill Out & Download Instantly

Free — No Sign-Up RequiredPDF & WordUpdated April 3, 2026

A profit and loss statement (P&L), also called an income statement, is one of the three essential financial statements for any business. It summarizes your revenue, cost of goods sold, gross profit, operating expenses, and net income (or loss) over a defined period.

⚠️ Legal Disclaimer: This template is attorney-reviewed and built to US legal standards. It does not substitute for professional legal advice. For complex situations, we recommend consulting a licensed attorney.

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Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

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PROFIT AND LOSS STATEMENT

[Business Name]

Period: [Period Start Date] through [Period End Date]

REVENUE

Revenue Source 1: $[Revenue — Source 1]

Revenue Source 2: $[Revenue — Source 2 (optional)]

TOTAL REVENUE: $[Total Revenue]

COST OF GOODS SOLD (COGS): $[Cost of Goods Sold (COGS)]

GROSS PROFIT: $[Gross Profit]

OPERATING EXPENSES

Salaries & Wages: $[Salaries & Wages]

Rent / Lease: $[Rent / Lease]

Utilities: $[Utilities]

Marketing & Advertising: $[Marketing & Advertising]

Insurance: $[Insurance]

Depreciation & Amortization: $[Depreciation & Amortization]

Other Operating Expenses: $[Other Operating Expenses]

TOTAL OPERATING EXPENSES: $[Total Operating Expenses]

===============================================

NET INCOME / (LOSS): $[Net Income / (Loss)]

===============================================

Prepared by: _________________________

Date: ________________________________

Note: This statement has not been audited or reviewed by an independent certified public accountant.

Document Completeness0%

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

Business Name*

Period Start Date*

MM/DD/YYYY

Period End Date*

MM/DD/YYYY

Revenue — Source 1*

e.g., Product Sales, Service Revenue, Consulting Fees

Revenue — Source 2 (optional)

Total Revenue

Sum of all revenue sources

Cost of Goods Sold (COGS)*

Direct costs of producing products or services

Gross Profit

Salaries & Wages

Rent / Lease

Utilities

Marketing & Advertising

Insurance

Depreciation & Amortization

Other Operating Expenses

Total Operating Expenses

Net Income / (Loss)

What Is a Profit and Loss Statement?

When Do You Need It?

You need a profit and loss statement for your taxes (Schedule C for sole proprietors), when applying for a business loan or SBA loan, when presenting your business to investors or partners, when reviewing quarterly or annual business performance, when working with an accountant, or when evaluating whether to continue, expand, or change your business model..

What's Included in This Template

Business name and reporting period (start and end dates)
Two revenue line items
Total revenue calculation
Cost of goods sold (COGS)
Gross profit calculation
Six operating expense categories: salaries, rent, utilities, marketing, insurance, depreciation
Other expenses line
Total expenses calculation
Net income (or loss) calculation
Professional P&L layout

How to Fill It Out

Enter business name and reporting period — Fill in your business name and the start and end dates of the period you are reporting on (monthly, quarterly, or annual). Consistent reporting periods allow meaningful comparisons over time.

Enter revenue — Enter your revenue by source in the Revenue 1 and Revenue 2 fields. For example, Revenue 1 might be 'Product Sales' and Revenue 2 might be 'Service Revenue.' The total revenue is the sum of all revenue sources.

Enter cost of goods sold and operating expenses — Cost of goods sold (COGS) includes the direct costs of producing your products or services — materials, direct labor, manufacturing overhead. Gross profit is Total Revenue minus COGS. Then enter all operating expenses: salaries and wages, rent, utilities, marketing, insurance, depreciation, and any other expenses.

Calculate net income and download — Net Income = Gross Profit minus Total Operating Expenses. A positive number is a net profit; a negative number is a net loss. Review all figures for accuracy and download as PDF for your records, tax filing, or loan application.

Legal Requirements & Notes

This profit and loss statement template is provided for general business record-keeping and planning purposes. It does not constitute accounting advice. For tax filings, loan applications, investor presentations, or audited financial statements, consult a licensed CPA or accountant. Financial statements used in loan applications or investment offerings may require preparation or review by a qualified accounting professional to be accepted by lenders or regulators.

Frequently Asked Questions

Gross profit is revenue minus the direct cost of goods sold (COGS). Net income is gross profit minus all operating expenses (salaries, rent, utilities, marketing, etc.). Gross profit shows how efficiently you produce your product or service; net income shows the overall profitability of the business after all costs.

Free Profit and Loss Statement Template — Fill Out & Download Instantly

PROFIT AND LOSS STATEMENT

REVENUE

OPERATING EXPENSES

===============================================

===============================================

What Is a Profit and Loss Statement?

When Do You Need It?

What's Included in This Template

How to Fill It Out

Legal Requirements & Notes

Frequently Asked Questions

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Income Statement

Balance Sheet

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