How Do You Complete A Profit And Loss Statement?
A profit and loss statement is sometimes called an income statement, and is primarily used to report the profitability of self-employed individuals. It is a financial statement with a simple calculation of revenue generated by the company minus any expenses incurred. The ending figure that is shown is often referred to as the bottom line, which simply means that the company has made a profit or has taken a loss as the end result. When you need to complete a profit and loss statement, follow the steps below. Set up a filing system. Get two individual file folders and label one for income and the other for expenses. Keep all of your income records and expense receipts in the files. Do this for each month of the year, then at the end of the month, staple and write the month on them. Include every expense that pertains to your business and also all income that you have received. Buy a ledger from an office supply store. Make two columns at the top for income and expenses. On each row, writ
