Profit and Loss Statement
A profit and loss statement is a critical analysis by a manager of a business that how well it is performing. A phrase that contains the revenues, costs and expenses of a company with in a specific time of period, usually a year or quarter of year indicates the profit and loss statement. With the help of these records, the information is obtained that at which pace the company stands. Moreover, this statement predicts the ability of a company to produce profit by increasing the revenues and reducing the costs. Same as it indicates the suffering of a company in the face of loss. Moreover, profit and statement is also known as “income statement” or an “income and expense statement”. The statement of profit and loss in a form begins with an entry for revenue and withdraws from revenue, the costs of running the business, counting cost of goods sold, operating expenses, tax expense and interest expense. The bottom line indicates the net income (profit). However, to follow the format of profit and loss statements it’s easy to find it on internet.
Above all the balance sheet, income statement and statement of cash flows are considered to be the most significant elements in financial statements shaped by a company. Rather considering one element, all elements have their equal participation that is considered to be analyzed together. This should be considered that this statement is surety of profit that is gained or has been gaining for years or about loss, else manager can predict anything without assurance that may lead him to wrong perceptions. At other side to consider the profit and loss statement the only way to analyze the health of business can be wrong, balance sheet also plays important role in this analysis. So to conclude the analysis it is necessary to have balance in analysis and should not demand profit and loss statements too often like in weeks.
To keep an eye on the money and the changes of money you have to write a Profit and Loss Statement. Profit and Loss Statement Excel Sheet basically makes you able to create a comprehensive Profit and Loss Statement. It calculates the percentage from from the prior period and budget. You can download it in PDF, Excel and JPEG formats for free. The links have been given at the end.