Below is a full profit and loss statement structure: revenue, cost of goods sold, gross profit, operating expenses, and net profit. Copy it into a spreadsheet, plug in your numbers, and see exactly where your business stands.
The profit and loss statement (also called an income statement or P&L) is the most fundamental financial report. It shows whether your business made or lost money over a specific period. Lenders, investors, and tax authorities all want to see it. This template breaks it down line by line so you understand every number — not just the bottom line.
Header
Fields
Description
Business Name*
Your registered legal name.
Period*
e.g. “For the year ended 31 December 2026” or “Q1 2026”.
Currency
e.g. EUR, USD, GBP.
Revenue
Fields
Description
Sales Revenue*
Income from goods sold or services delivered.
Other Income
Interest, rental income, one-off gains.
Total Revenue*
Sales + Other Income.
Cost of Goods Sold (COGS)
Fields
Description
Materials / Inventory
Direct cost of products sold.
Direct Labour
Wages for production staff.
Total COGS*
Sum of all direct costs.
Gross Profit
Fields
Description
Gross Profit*
Total Revenue − Total COGS.
Gross Margin %
Gross Profit ÷ Total Revenue × 100.
Operating Expenses
Fields
Description
Rent & Utilities
Office, warehouse, electricity, internet.
Salaries & Wages
Non-production staff (admin, sales, management).
Marketing & Advertising
Ads, website, events.
Software & Subscriptions
SaaS tools, hosting, licenses.
Travel & Entertainment
Business trips, client meals.
Professional Fees
Accountant, lawyer, consultant.
Depreciation
Asset value spread over its useful life.
Total Operating Expenses*
Sum of all expenses above.
Net Profit
Fields
Description
Operating Profit (EBIT)*
Gross Profit − Total Operating Expenses.
Interest Expense
Loan and credit interest.
Tax
Corporate income tax.
Net Profit*
The bottom line — what the business actually earned.
Net Margin %
Net Profit ÷ Total Revenue × 100.
How to use
1Set the period — monthly, quarterly, or annually.
2Pull revenue figures from your sales records or invoicing system.
3Calculate COGS only if you sell physical products or have direct delivery costs.
4List every operating expense category — match them to your chart of accounts.
5Subtract COGS from Revenue for Gross Profit, then subtract Operating Expenses for Net Profit.
6Compare to previous periods — trends matter more than any single number.
Or automate this
Building a P&L by hand means pulling numbers from five different places and hoping they add up. Nika can pull revenue and expenses from your connected accounts, categorise them, and generate a clean P&L every month — from {price} per statement. You get the numbers; she does the assembly.
Questions
What is the difference between gross profit and net profit?+
Gross profit is revenue minus the direct cost of producing goods or services (COGS). Net profit is what is left after ALL expenses — operating costs, interest, and tax. Gross profit tells you if your core business is viable; net profit tells you if the whole operation makes money.
Should I use cash or accrual accounting for my P&L?+
Accrual accounting (recording revenue when earned and expenses when incurred) gives a more accurate picture of profitability. Cash accounting (recording when money changes hands) is simpler but can mislead — a profitable month on paper may hide unpaid bills. Most formal P&L statements use accrual.