Profit and loss statement template is a financial statement which tells the overall profit or loss of the business for six month or a whole accounting year. All expenditures are added up and subtracted from total sales to get profit of the business. All expenditures or the business are settled against total net sales of the business in this statement. This profit and loss statement template is prepared before making other financial statements like income statement or balance sheet. This statement is required for some other purposes also like for applying some sort or loan or it may be shown to the new business partners. This statement must also be drafted in proper formats like other financial statements.
Importance of Profit and Loss Statement Template
As the title shows, a profit and loss statement is one of the most important documents of a business that is created to review the profit margin and loss percentage periodically. Profit and loss statements can be prepared on a monthly basis and yearly basis depending on the requirements of the organization. Mainly this statement consists of facts and figures and amounts of loss and profit of an organization. Finance and Accounts department is responsible for creating profit and loss statements in most professional way. If you are looking for best format to create a professional looking profit and loss statement, you are suggested to use profit and loss statement template as you will find this template very convenient regarding many ways.
