FREE Profit and Loss Statement Template for Accounting (Excel)

A Profit and Loss Statement template helps you summarize a company’s revenue, expenses, and net income over a period. It is one of the core financial reports used by accountants, bookkeepers, and small business owners. To make financial reporting easier, we created a ready-to-use P and L template you can customize in Excel or Google Sheets. This template includes built-in formulas, automated calculations, category tabs, and a dashboard that updates as you enter new numbers. It is ideal for monthly, quarterly, or annual reporting.

Download the Editable Profit and Loss Statement Template

Profit and Loss Statement Template (P &L)

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Why Use a Profit and Loss Statement Template

P & L statement gives you clear visibility into profitability and spending trends. It helps you track performance, compare results, and prepare accurate reports with less manual work. Key benefits include:

• Tracking revenue and expenses over time
• Comparing actual results to budget
• Identifying rising costs
• Reviewing year-over-year changes
• Supporting tax preparation
• Producing clean client-ready reports

How to Use the Profit and Loss Template

The template is divided into tabs for Sales, Income, Expenses, Taxes, and Categories. The Dashboard summarizes results automatically.

Step 1: Enter Sales Revenue

Open the Sales tab and list each product or service. Enter values for prior period, current period, and budget. Totals update instantly.

Step 2: Add Additional Income

Record additional income sources in the Income tab. Examples include interest income or other credits.

Step 3: List Operating Expenses

Enter all operating expenses in the Expenses tab. These are grouped into common accounting categories for clear reporting.

Step 4: Enter Taxes

Use the Taxes tab to record income taxes, payroll taxes, real estate taxes, or other tax categories.

Step 5: Review the Dashboard

The Dashboard shows a full summary that updates as you type, including:

• Total sales
• Gross profit
• Operating expenses
• Income from operations
• Other income
• Total taxes
• Net income
• Percent changes from prior period and budget

Features of the Profit and Loss Template

This template is designed for clean reporting and easy customization.

• Automated calculations throughout
• Prior period, current period, and budget columns
• Percent change formulas
• Organized revenue, income, expense, and tax categories
• Built-in dashboard summary
• Editable categories for any business type

How the Profit and Loss Template Works (with simple numbers)

Here are a few quick examples using the built-in formulas in the template.

1. Sales Revenue Example

If you enter:
• Prior period sales: 8,000
• Current period sales: 10,000

The dashboard will show:
• 25 percent growth from the prior period
• Current period as 100 percent of sales because sales are the main revenue source

Meaning: The business increased revenue by 2,000 compared to last month.

2. Cost of Sales Example

If cost of sales is:
• Prior period: 3,500
• Current period: 4,000

The template calculates:
• Gross profit = 10,000 minus 4,000 = 6,000
• Gross margin = 60 percent

Meaning: For every dollar of sales, the business keeps sixty cents after direct costs.

3. Expense Example

If Advertising expenses change from:
• Prior period: 300
• Current period: 450

The template shows:
• 50 percent increase in advertising spend

Meaning: The company spent more on marketing, which may impact operating profit depending on total revenue.

4. Net Income Example

If the dashboard totals show:
• Total revenue: 10,000
• Total expenses (including cost of sales): 8,200

The template calculates:
• Net income = 1,800
• Net margin = 18 percent

Meaning: The business is operating profitably and keeping eighteen percent of each sales dollar.

5. Budget Comparison Example

If the budget for an expense was 1,000 but current spending is 900:
• The template shows 10 percent under budget

Meaning: Spending is in control and below planned levels.

Tips for Using the Profit and Loss Worksheet

• Keep categories consistent for accurate comparisons
• Use the budget column to track expected vs actual results
• Add new categories in the Categories tab if clients operate in different industries
• Duplicate the file for each reporting period
• Use the dashboard for quick summaries during client meetings

Need Help Managing New Client Projects

If your firm handles recurring financial reports, staying organized is challenging. Jetpack Workflow can streamline work, automate deadlines, and keep all client tasks updated. It helps you deliver consistent reporting and reduce manual tracking across the firm.

Final Thoughts

A Profit and Loss Statement is essential for any business. With this editable template, you can simplify monthly and annual reporting, improve accuracy, and deliver clean financial summaries to clients. Download the template and use it to support bookkeeping, tax prep, or advisory work.

Jetpack Workflow gives you:

• Automated recurring job schedules for every client
• Clear visibility into who is working on what
• Deadline tracking for monthly close, payroll, bookkeeping, and tax work
• Custom templates you can apply across all clients
• A simple way to standardize your firm’s workflow

If you need more essential accounting templates, you can also download our other free resources. These include the General Ledger Template, Bank Reconciliation Template, Payroll Template, Balance Sheet Template, and our Bookkeeping Templates collection. Each one is designed to help accountants and bookkeepers complete monthly close work faster and with fewer errors.

If you want to spend less time managing spreadsheets and more time delivering high value advisory work, Jetpack Workflow can help you stay organized at every stage of growth.

Frequently Asked Questions

What is a Profit and Loss Statement?

A Profit and Loss Statement is a financial report that shows a company’s revenue, expenses, and net income during a specific period.

Why is a Profit and Loss Statement important?

It helps businesses evaluate profitability, monitor spending, and assess overall financial health.

Does this template calculate totals automatically?

Yes. The Excel and Google Sheets versions include formulas for totals, percent changes, and key performance metrics.

Can I customize the categories in the template?

Yes. Use the Categories tab to add or adjust categories, and the changes update throughout the workbook.

Is the template suitable for monthly or annual reporting?

Yes. Use it for monthly, quarterly, or yearly periods.

Who should use this Profit and Loss Template?

It is ideal for accountants, bookkeepers, small business owners, and CAS teams.