How Do I Prepare a Startup Profit and Loss Statement or Income Statement?
How Do I Prepare a Startup Profit and Loss Statement or Income Statement?A profit and loss statement (sometimes called an income statement) shows the revenues and expenses, and resulting profits/losses of a business over a specific time period (a month, a quarter, or a year). Preparing an income statement at startup means you are estimating what your income will be at the end of the first year, so this statement is called a pro forma (projected) statement.Answer: Preparing a Year-end Pro Forma Income (Profit and Loss) Statement Most of the information for this statement comes from your first year monthly budget (cash flow statement), and from estimated calculations on depreciation from your tax adviser. For each row, you will have a quarterly amount then a total for the year. • First, show your business net income (usually titled “Sales”) for ea
