Income Statement / P&L
A simplified profit and loss statement: revenue, cost of sales, expenses and tax down to the net profit, with margins and a prior-period column.
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Country versions
- International
- United States *
- Korea *
- Japan *
- Germany *
* check with local advice
A template, not advice.
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What it is
An income statement, also called a profit and loss statement or P&L, shows what a business earned and spent over a period (a month, a quarter, a year) and what was left. It starts with revenue, subtracts the direct cost of what was sold to reach the gross profit, subtracts the cost of running the business to reach the operating profit, adds or subtracts other income and expenses, subtracts income tax, and ends with the net profit.
This sheet is a simplified working document for a small business. You type each line for the period and, if you like, for a prior period. The gross profit, the operating profit, the profit before tax and the net profit are worked out as you type, together with three margins: each profit as a percentage of revenue. Expenses are typed as positive amounts and subtracted for you. The income tax is a figure you type, because the sheet does not work out tax.
It is not a statutory financial statement. It is not audited, it does not follow any country's reporting rules, and QuoteBill cannot say whether a bank, an authority or an investor will accept it. The country versions change captions and terms (and, for Japan, add the ordinary profit and special items) so the page looks familiar; they change nothing else.
When to use it
- You want to see whether a month, quarter or year made a profit, and which costs weigh most.
- You compare this period with the one before and want the margins side by side.
- A bank, partner or landlord asks for a simple profit statement and your own bookkeeping stands behind the figures.
- You prepare the figures for your accountant in an order they can check at a glance.
How to fill it in
- Choose the period, the currency and, for the comparison column, a short name for the prior period.
- Fill in the revenue lines, then the cost of sales; the gross profit appears below them.
- Fill in the operating expenses line by line; the operating profit appears below them.
- Add other income and other expenses, then type the income tax. The profit before tax and the net profit follow.
- Check the margins, then print the statement or download it as a Word or Excel file.
Common mistakes
- Typing expenses as negative numbers. They are subtracted for you, so enter them as positive amounts.
- Counting owner draws, dividends or loan repayments as expenses; they reduce cash or equity, not profit.
- Mixing cash and invoice dates. Decide whether you record what was invoiced or what was paid, and keep to it.
- Leaving out depreciation, which makes the profit look larger than it is.
- Comparing periods of different length without saying so, for example a three-month period against a full year.
Steps at a glance
- Fill in
- Check the preview
- Save as PDF, Word or Excel
Country versions
Pick the country you need. Each version uses the wording and layout commonly found there; a version marked “check with local advice” should be read by someone who knows the local rules before it is used.
- International (XX): Written in English, Korean, Japanese, German
- United States (US): Written in English – check with local advice
- Korea (KR): Written in English, Korean – check with local advice
- Japan (JP): Written in English, Japanese – check with local advice
- Germany (DE): Written in English, German – check with local advice
Designs
The same form in several designs. The fields and the wording stay the same; only the look changes.
- Ledger
- Banner
- Executive
- Classic
- Modern
- Formal
- Minimal
- Side band
- Compact
- Boxed form
- Warm
- Plain (black and white)
Your details fill it in
Fields that ask for your name, address or company details are filled from My details, so you do not type them again; you can still change any field for one form. Signed in, your details stay in your account; otherwise they stay in this browser only. A passport, identity or social security number is never saved.
Questions
- What is the difference between gross, operating and net profit?
- Gross profit is revenue less the direct cost of what you sold. Operating profit also subtracts the costs of running the business, such as pay, rent and marketing. Net profit is what remains after other income and expenses and income tax.
- Why do I type the income tax myself?
- Tax depends on your country, legal form, adjustments and rates, none of which this sheet knows. Take the figure from your tax calculation or your accountant and type it in; the net profit then follows.
- Should I enter what I invoiced or what I was paid?
- Either can be right, but use one basis for the whole statement. Many businesses record revenue when it is invoiced and costs when they are incurred; small businesses that keep cash books record money in and out. Ask your accountant which one applies to you.
- How are the margins calculated?
- Each margin is the profit divided by the total revenue, times 100, rounded to one decimal place. With no revenue entered the margin shows 0.
- Can I add a line that is not on the list?
- Yes. Add a row to the group, leave the caption empty or pick the closest one, and name the line in the Note column. It counts in the group's total like any other row.
- Is this form legal, tax or accounting advice?
- No. It is a template: it gives you the usual structure and wording, not advice. Rules differ by country and case, so have someone qualified read anything that matters before you sign, send or file it.
- Which countries and designs does it come in?
- It comes in 5 country versions: International, United States, Korea, Japan, and Germany. 12 designs.
A form is a template, not legal, tax or accounting advice. Rules differ by country and case.