How Do You Create A Profit And Loss Statement?
A Profit and Loss Statement is also commonly called an Income Statement. The purpose of the statement is to measure and record a company’s income and expenses over the specified period of time. This shows a company whether they are operating in the red or in the black and where changes need to be made. This article will instruct you on how to prepare a Profit and Loss Statement for your business. Create a heading at the top of your paper. There are two lines needed and both should be centered. The first line should read “Profit and Loss Statement (your company’s name goes here).” The second line tells what period of time you are reviewing so it should read, “For the month ended March 31, 2008”. Change March 31, 2008 with your ending date and your heading is done. Create your categories. These categories should be centered left. You should have two categories and a final Net Income. So first you are going to write Revenue: and hit enter. Leave space to write all your sources of revenue.