A profit and loss statement template is a tool which is used to estimate the sales and expenses of a company during a specific period of time. The function of this statement is to calculate earnings and subtract all expenses related to interest. It shows considerate financial progress of a company during the specific time period like income statement, which is being examined. It is a financial statement which describes the proceeds, expenses and cost of consumption during a specific period of time which is usually depended upon monthly, quarterly and yearly. A profit and loss statement helps management in figuring out business development, cost of goods sold, variable expenses and achieved sales targets. This template is very similar to company profit sheet template which helps companies to calculate their net profit for the year before making long-term financial decisions.
Uses of Profit and Loss Statement:
A profit and loss statement shows a meaningful analysis no matter whether a business has made a profit or loss at the end of a financial period. This statement cannot be prepared without the collaboration of the following statements; statement of accounts, cost of goods sold, taxation statement, fixed and variable cost and inventory sheet. These statements are also very important and require skills to prepare. Usually, companies hire an external audited firm to prepare and evaluate them. There is a need for preparing a profit and loss statement which can help you to be sure about the profitable elements of your company. Furthermore, it can explain to you all the positive and negative elements of your business and organization. This statement can help you with various objects and can be used many times. For your comfort and ease, you can download a professional template from the list given below.
