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Calculated Shard: 123 (from laksa065)

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curl -X POST \
  'http://laksa123.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://startupsavant.com/startup-finance/how-to-prepare-a-profit-and-loss-statement\')), getAhrefsUnparsedNoserviceFromURL(\'https://startupsavant.com/startup-finance/how-to-prepare-a-profit-and-loss-statement\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/startupsavant.com\/startup-finance\/how-to-prepare-a-profit-and-loss-statement","crawl_time":1775791642,"first_indexed_time":1697152159,"http_code":200,"src_unparsed":"com,startupsavant!\/startup-finance\/how-to-prepare-a-profit-and-loss-statement s443","src_root_hash":"15710666046209173723","history_drop_reason":null,"meta_title":"Preparing a Profit and Loss (P&L) Statement for a Startup","meta_descriptions":["This guide walks you through what a P&L statement is, why your company needs it, and how to prepare a profit and loss statement for your startup."],"attrs_boilerpipe_text":"Monitoring your startup’s finances is an integral part of knowing how to sustain and grow your business. A profit and loss (P&L) statement is one key element to measuring the health of your startup’s finances.\nThis guide walks you through what a P&L statement is, why your company needs it, and\nhow to prepare a profit and loss statement for your startup.\nP&L Statements for Startups\nTracking a company’s profit and loss provides entrepreneurs with insight into their startup’s financial wellness and performance over a period of time, allowing them to make better decisions for their business.\nWhile it is possible to prepare a P&L statement using financial management software such as\nQuickBooks\n, knowing how to manually issue one can be valuable for entrepreneurs. Especially if they are looking to deeply familiarize themselves with their company’s financial position.\nWhat Is a Profit and Loss statement?\nA\nprofit and loss (P&L) statement,\ncommonly referred to as an\nincome statement\n, is a summary of the net profit and loss of a company over a period of time. This is one of three financial reports businesses are required to prepare annually and quarterly, along with a\ncash flow statement\nand\nbalance sheet\n.\nThe P&L statement, specifically, indicates whether a business is profitable or not, how much profit is being made, and helps when filing taxes.\nWhy Do I Need a P&L Statement for My Startup?\nAs mentioned above, P&L statements are one of the three reports businesses are required to issue. However, these statements also provide value for entrepreneurs and their teams to better their company’s financial position.\nTax Preparation\nNot only is a P&L used by startup founders to gauge the financial performance of their company, but the\nInternal Revenue Service (IRS)\nuses these statements to make tax assessments as well.\nGenerates Feedback\nThe amount of profit versus expenses may help you better understand how your product or service is performing. This feedback may help you troubleshoot and adapt to better reach your target market.\nHow to Create a P&L statement\nMany businesses choose to use software to track their finances that can easily issue a profit and loss statement. However, if you’d rather prepare one manually, here are six easy steps to create a P&L statement for your startup.\n1. Choose Your Time Period\nWhether you’re issuing an annual, quarterly, or monthly P&L sheet, your first step is to determine the reporting period you’re calculating for. Then, gather all of the information required to calculate revenue, expenses, and any other financial information from that period to create your statement.\n2. Calculate Revenue\nNext, calculate your company’s\nrevenue\nfor your reporting period. This will include any money you gain from the sale of your company’s profits or services.\nIt is helpful to keep these sales documented and organized as they occur.\n3. Calculate Expenses\nAfter you have determined the amount of money you have coming in, you need to calculate the money your company is spending, otherwise known as\nexpenses\nor\ncosts of goods sold\n.\nThis, however, does not include salaries, leases, or any other fixed expenses.\n4. Find the Gross Profit\nYour next step is to determine your\ngross profit\nby subtracting your operating expenses (Step 2) from your revenue (Step 3) listed above.\n5. Add In Overhead Costs\nThen, add your\noverhead costs\n. These are the fixed expenses that typically don’t change based on your revenue, such as salaries, rent, insurance, and other continuous expenses.\nSubtract the total of your\noverhead costs\nfrom your\ngross profits\nto determine your\noperating income.\nKeep in mind that if you have any non-operational expenses or revenue, such as interest or dividends, these will need to be added or subtracted from your operating income.\n6. Assess the Net Profit\nOnce you have your\noperating income\n,\nyou will know your\nnet profit.\nThis is how much profit or loss your company had over the reporting period after revenue and expenses.\nYou can use this number to assess the financial health of your company and make changes if needed to avoid losses in the future.\nP&L Statement Tools for Startups\nWhile it is possible to issue profit and loss statements manually, using financial management or\naccounting software\nmakes the process easier and faster. Here are some great options for startup profit and loss statement tools.\n1. QuickBooks\nWith\nQuickBooks\n’ suite of accounting software tools, startups can easily manage their finances as well as prepare profit and loss statements with ease.\n2. Lili\nIf you’re looking for a free P&L template as well as additional resources,\nLili\noffers a variety of information. Plus, if you utilize Lili’s accounting software, profit and loss statements are automatically generated for you.\nLili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.\n3. FreshBooks\nFinally,\nFreshBooks\noffers a free downloadable P&L template that is compatible with Google Sheets, Google Docs, PDFs, and more.","attrs_markdown":"- [Inspiration](https:\/\/startupsavant.com\/startup-finance\/how-to-prepare-a-profit-and-loss-statement)\n  **[All Inspiration Articles](https:\/\/startupsavant.com\/startup-inspiration)**\n  \n  - **[Top Startups](https:\/\/startupsavant.com\/startups)**\n  - [Environmental](https:\/\/startupsavant.com\/startups-to-watch\/environmental)\n  - [Artificial Intelligence](https:\/\/startupsavant.com\/startups-to-watch\/ai)\n  - [Healthcare](https:\/\/startupsavant.com\/startups-to-watch\/healthcare)\n  - [Silicon Valley](https:\/\/startupsavant.com\/startups-to-watch\/silicon-valley)\n  - [Australia](https:\/\/startupsavant.com\/startups-to-watch\/australia)\n  \n  - **[Startup Ideas](https:\/\/startupsavant.com\/startup-ideas)**\n  - [Tech](https:\/\/startupsavant.com\/best-tech-startup-ideas)\n  - [Education](https:\/\/startupsavant.com\/startup-ideas-for-education-entrepreneurs)\n  - 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[Home](https:\/\/startupsavant.com\/)\n2. [Finance](https:\/\/startupsavant.com\/startup-finance)\n3. How to Prepare a Profit and Loss (P\\&L) Statement for Your Startup\n\n# How to Prepare a Profit and Loss (P\\&L) Statement for Your Startup\nJuly 25, 2024\n\n\\| Written by\n\n[Michaela Peyton](https:\/\/startupsavant.com\/authors\/michaela-dale)\n\n![People working with financial statements and documents.](data:image\/svg+xml,%3Csvg%20xmlns='http:\/\/www.w3.org\/2000\/svg'%20width='1200'%20height='630'%20viewBox='0%200%201200%20630'%3E%3C\/svg%3E)\n\n![People working with financial statements and documents.](https:\/\/startupsavant.com\/images\/startup-center\/articles\/p-l-statement-startup.jpg)\n\nMonitoring your startup’s finances is an integral part of knowing how to sustain and grow your business. A profit and loss (P\\&L) statement is one key element to measuring the health of your startup’s finances.\n\nThis guide walks you through what a P\\&L statement is, why your company needs it, and **how to prepare a profit and loss statement for your startup.**\n\n## P\\&L Statements for Startups\nTracking a company’s profit and loss provides entrepreneurs with insight into their startup’s financial wellness and performance over a period of time, allowing them to make better decisions for their business.\n\nWhile it is possible to prepare a P\\&L statement using financial management software such as [QuickBooks](https:\/\/www.dpbolvw.net\/click-5628080-12724848?sid=%2Aw%3Asupsa%2Ap%3Astartup-finance%2Fhow-to-prepare-a-profit-and-loss-statement%2Al%3Atop \"Link to QuickBooks\"), knowing how to manually issue one can be valuable for entrepreneurs. Especially if they are looking to deeply familiarize themselves with their company’s financial position.\n\n### What Is a Profit and Loss statement?\nA **profit and loss (P\\&L) statement,** commonly referred to as an **income statement**, is a summary of the net profit and loss of a company over a period of time. This is one of three financial reports businesses are required to prepare annually and quarterly, along with a [cash flow statement](https:\/\/startupsavant.com\/startup-finance\/how-to-create-a-cash-flow-statement \"Link to How to Create a Startup Cash Flow Statement\") and [balance sheet](https:\/\/startupsavant.com\/startup-finance\/how-to-create-a-balance-sheet \"Link to How to Create a Balance Sheet for a Startup\").\n\nThe P\\&L statement, specifically, indicates whether a business is profitable or not, how much profit is being made, and helps when filing taxes.\n\n### Why Do I Need a P\\&L Statement for My Startup?\nAs mentioned above, P\\&L statements are one of the three reports businesses are required to issue. However, these statements also provide value for entrepreneurs and their teams to better their company’s financial position.\n\n#### Tax Preparation\nNot only is a P\\&L used by startup founders to gauge the financial performance of their company, but the [Internal Revenue Service (IRS)](https:\/\/www.irs.gov\/ \"Link to IRS\") uses these statements to make tax assessments as well.\n\n#### Generates Feedback\nThe amount of profit versus expenses may help you better understand how your product or service is performing. This feedback may help you troubleshoot and adapt to better reach your target market.\n\n## How to Create a P\\&L statement\nMany businesses choose to use software to track their finances that can easily issue a profit and loss statement. However, if you’d rather prepare one manually, here are six easy steps to create a P\\&L statement for your startup.\n\n### 1\\. Choose Your Time Period\nWhether you’re issuing an annual, quarterly, or monthly P\\&L sheet, your first step is to determine the reporting period you’re calculating for. Then, gather all of the information required to calculate revenue, expenses, and any other financial information from that period to create your statement.\n\n### 2\\. Calculate Revenue\nNext, calculate your company’s **revenue** for your reporting period. This will include any money you gain from the sale of your company’s profits or services.\n\nIt is helpful to keep these sales documented and organized as they occur.\n\n### 3\\. Calculate Expenses\nAfter you have determined the amount of money you have coming in, you need to calculate the money your company is spending, otherwise known as **expenses** or **costs of goods sold**.\n\nThis, however, does not include salaries, leases, or any other fixed expenses.\n\n### 4\\. Find the Gross Profit\nYour next step is to determine your **gross profit** by subtracting your operating expenses (Step 2) from your revenue (Step 3) listed above.\n\n### 5\\. Add In Overhead Costs\nThen, add your **overhead costs**. These are the fixed expenses that typically don’t change based on your revenue, such as salaries, rent, insurance, and other continuous expenses.\n\nSubtract the total of your **overhead costs** from your **gross profits** to determine your **operating income.**\n\nKeep in mind that if you have any non-operational expenses or revenue, such as interest or dividends, these will need to be added or subtracted from your operating income.\n\n### 6\\. Assess the Net Profit\nOnce you have your **operating income**,you will know your **net profit.** This is how much profit or loss your company had over the reporting period after revenue and expenses.\n\nYou can use this number to assess the financial health of your company and make changes if needed to avoid losses in the future.\n\n## P\\&L Statement Tools for Startups\nWhile it is possible to issue profit and loss statements manually, using financial management or [accounting software](https:\/\/startupsavant.com\/7-business-accounting-software-tools \"Link to Business Accounting Software Tools for Startups\") makes the process easier and faster. Here are some great options for startup profit and loss statement tools.\n\n### 1\\. QuickBooks\nWith [QuickBooks](https:\/\/quickbooks.intuit.com\/ca\/cash-flow\/ \"Link to QuickBooks\")’ suite of accounting software tools, startups can easily manage their finances as well as prepare profit and loss statements with ease.\n\n### 2\\. Lili\nIf you’re looking for a free P\\&L template as well as additional resources, [Lili](https:\/\/lili.co\/resources\/accounting\/profit-and-loss-statement \"Link to Lili\") offers a variety of information. Plus, if you utilize Lili’s accounting software, profit and loss statements are automatically generated for you.\n\n*Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.*\n\n### 3\\. FreshBooks\nFinally, [FreshBooks](https:\/\/www.freshbooks.com\/accounting-templates\/profit-and-loss \"Link to FreshBooks\") offers a free downloadable P\\&L template that is compatible with Google Sheets, Google Docs, PDFs, and more.\n\nShare this article:\n\n- [\\#](https:\/\/startupsavant.com\/startup-finance\/how-to-prepare-a-profit-and-loss-statement)\n- [\\#](https:\/\/startupsavant.com\/startup-finance\/how-to-prepare-a-profit-and-loss-statement)\n- [\\#](https:\/\/startupsavant.com\/startup-finance\/how-to-prepare-a-profit-and-loss-statement)\n- [Reddit](https:\/\/startupsavant.com\/startup-finance\/how-to-prepare-a-profit-and-loss-statement)\n\nFurther Reading\n***\n- [Best Financial Management Tools to Track Startup Growth](https:\/\/startupsavant.com\/service-reviews\/best-financial-tools-for-startups)\n  January 20, 2025\n- [Guide to Financial Modeling for Startups](https:\/\/startupsavant.com\/startup-center\/financial-modeling-for-startups)\n  July 25, 2024\n- [Startup Costs Entrepreneurs Should Know](https:\/\/startupsavant.com\/startup-costs)\n  July 25, 2024\n\nTopics to Explore\n***\n- [Startup Ideas](https:\/\/startupsavant.com\/startup-ideas)\n- [Startup Basics](https:\/\/startupsavant.com\/startup-basics)\n- [Startup Leadership](https:\/\/startupsavant.com\/startup-leadership)\n- [Startup Marketing](https:\/\/startupsavant.com\/startup-marketing)\n- [Startup Funding](https:\/\/startupsavant.com\/startup-finance\/funding)\n\nBrowse Tags\n***\n[reviews](https:\/\/startupsavant.com\/service-reviews) [guides](https:\/\/startupsavant.com\/guides) [inspiration](https:\/\/startupsavant.com\/startup-inspiration) [resources](https:\/\/startupsavant.com\/startup-resources) [finance](https:\/\/startupsavant.com\/startup-finance) [foundations](https:\/\/startupsavant.com\/startup-foundations)\n\n![](data:image\/svg+xml,%3Csvg%20xmlns='http:\/\/www.w3.org\/2000\/svg'%20width='0'%20height='0'%20viewBox='0%200%200%200'%3E%3C\/svg%3E)\n\n![](https:\/\/startupsavant.com\/wp-content\/uploads\/supsa-logo-light.svg)\n\nreviews\n\n[Best LLC Services](https:\/\/startupsavant.com\/7-business-incorporation-services)  \n[Best Registered Agent Services](https:\/\/startupsavant.com\/best-registered-agent-services)  \n[Best Banks for Startups](https:\/\/startupsavant.com\/best-business-bank-accounts)  \n[Best Website Builders](https:\/\/startupsavant.com\/best-business-website-builders)  \n[Best Business Plan Software](https:\/\/startupsavant.com\/7-business-planning-software-tools)  \n[Best Press Release Services](https:\/\/startupsavant.com\/best-press-release-distribution-services)  \n[Best Incorporation Services](https:\/\/startupsavant.com\/best-incorporation-services-for-startups)  \n[Best Nonprofit Formation Services](https:\/\/startupsavant.com\/best-nonprofit-formation-services)\n\nstartups\n\n[Company Profiles](https:\/\/startupsavant.com\/startup-center\/company-profiles)  \n[Top Startups to Watch](https:\/\/startupsavant.com\/startups)  \n[Strategy Stories](https:\/\/startupsavant.com\/startups\/strategy-stories)  \n[Feature News](https:\/\/startupsavant.com\/news)  \n[Podcast](https:\/\/startupsavant.com\/startup-savant-podcast)\n\nhow-to guides\n\n[Start a Startup](https:\/\/startupsavant.com\/how-to-start-a-startup)  \n[Start a Small Business](https:\/\/startupsavant.com\/how-to-start-a-business)  \n[Start an LLC](https:\/\/startupsavant.com\/how-to-start-an-llc)  \n[Start a Corporation](https:\/\/startupsavant.com\/start-a-corporation)  \n[Get a DBA](https:\/\/startupsavant.com\/how-to-get-a-dba)  \n[Start an S Corp](https:\/\/startupsavant.com\/how-to-start-an-s-corp)\n\ntopics\n\n[Startup Ideas](https:\/\/startupsavant.com\/startup-ideas)  \n[Startup Resources](https:\/\/startupsavant.com\/startup-resources)  \n[Startup Funding](https:\/\/startupsavant.com\/startup-finance\/funding)  \n[Startup Leadership](https:\/\/startupsavant.com\/startup-leadership)  \n[Startup Marketing](https:\/\/startupsavant.com\/startup-marketing)\n\nconnect with us\\!\n\n- [Facebook](https:\/\/www.facebook.com\/startupsavant)\n- [Instagram](https:\/\/www.instagram.com\/startupsavant\/)\n- [X](https:\/\/x.com\/StartupSavant)\n- [Pinterest](https:\/\/www.pinterest.com\/startupsavant\/)\n- [LinkedIn](https:\/\/www.linkedin.com\/company\/startup-savant)\n- [YouTube](https:\/\/www.youtube.com\/channel\/UCFU51ISkkROy-Pl81ue4YTw)\n- [Reddit](https:\/\/www.reddit.com\/r\/startupsavant\/)\n\nsign up for our  \nnewsletter\n\n[**Subscribe**](https:\/\/truic.com\/newsletter-signup-startupsavant)\n\n© 2024 TRUiC, All rights reserved\n\n[About Us](https:\/\/startupsavant.com\/about-us) \\| [Terms of Use](https:\/\/startupsavant.com\/terms-of-use) \\| [FTC Disclosure](https:\/\/startupsavant.com\/disclosure) \\| [Privacy Policy](https:\/\/startupsavant.com\/privacy-policy) \\| [Contact Us](https:\/\/startupsavant.com\/contact)\n\nThis website is meant to be opinion and information based, not legal advice of any kind. We spend hundreds of hours per month updating and refining our content as things change, but to be used as-is. For questions while starting a business, we recommend consulting with an attorney or accountant. Names, trademarks and logos mentioned all belong to their respective owners. Some of the links may be affiliate links, earning us a small commission if you decide to use them, allowing us to continue creating content.\n\nWhen readers purchase services discussed on our site, we often earn affiliate commissions that support our work. [Read our FTC Disclosure](https:\/\/startupsavant.com\/disclosure).\n\n×","attrs_readable_markdown":"Monitoring your startup’s finances is an integral part of knowing how to sustain and grow your business. A profit and loss (P\\&L) statement is one key element to measuring the health of your startup’s finances.\n\nThis guide walks you through what a P\\&L statement is, why your company needs it, and **how to prepare a profit and loss statement for your startup.**\n\n## P\\&L Statements for Startups\nTracking a company’s profit and loss provides entrepreneurs with insight into their startup’s financial wellness and performance over a period of time, allowing them to make better decisions for their business.\n\nWhile it is possible to prepare a P\\&L statement using financial management software such as [QuickBooks](https:\/\/www.dpbolvw.net\/click-5628080-12724848?sid=%2Aw%3Asupsa%2Ap%3Astartup-finance%2Fhow-to-prepare-a-profit-and-loss-statement%2Al%3Atop \"Link to QuickBooks\"), knowing how to manually issue one can be valuable for entrepreneurs. Especially if they are looking to deeply familiarize themselves with their company’s financial position.\n\n### What Is a Profit and Loss statement?\nA **profit and loss (P\\&L) statement,** commonly referred to as an **income statement**, is a summary of the net profit and loss of a company over a period of time. This is one of three financial reports businesses are required to prepare annually and quarterly, along with a [cash flow statement](https:\/\/startupsavant.com\/startup-finance\/how-to-create-a-cash-flow-statement \"Link to How to Create a Startup Cash Flow Statement\") and [balance sheet](https:\/\/startupsavant.com\/startup-finance\/how-to-create-a-balance-sheet \"Link to How to Create a Balance Sheet for a Startup\").\n\nThe P\\&L statement, specifically, indicates whether a business is profitable or not, how much profit is being made, and helps when filing taxes.\n\n### Why Do I Need a P\\&L Statement for My Startup?\nAs mentioned above, P\\&L statements are one of the three reports businesses are required to issue. However, these statements also provide value for entrepreneurs and their teams to better their company’s financial position.\n\n#### Tax Preparation\nNot only is a P\\&L used by startup founders to gauge the financial performance of their company, but the [Internal Revenue Service (IRS)](https:\/\/www.irs.gov\/ \"Link to IRS\") uses these statements to make tax assessments as well.\n\n#### Generates Feedback\nThe amount of profit versus expenses may help you better understand how your product or service is performing. This feedback may help you troubleshoot and adapt to better reach your target market.\n\n## How to Create a P\\&L statement\nMany businesses choose to use software to track their finances that can easily issue a profit and loss statement. However, if you’d rather prepare one manually, here are six easy steps to create a P\\&L statement for your startup.\n\n### 1\\. Choose Your Time Period\nWhether you’re issuing an annual, quarterly, or monthly P\\&L sheet, your first step is to determine the reporting period you’re calculating for. Then, gather all of the information required to calculate revenue, expenses, and any other financial information from that period to create your statement.\n\n### 2\\. Calculate Revenue\nNext, calculate your company’s **revenue** for your reporting period. This will include any money you gain from the sale of your company’s profits or services.\n\nIt is helpful to keep these sales documented and organized as they occur.\n\n### 3\\. Calculate Expenses\nAfter you have determined the amount of money you have coming in, you need to calculate the money your company is spending, otherwise known as **expenses** or **costs of goods sold**.\n\nThis, however, does not include salaries, leases, or any other fixed expenses.\n\n### 4\\. Find the Gross Profit\nYour next step is to determine your **gross profit** by subtracting your operating expenses (Step 2) from your revenue (Step 3) listed above.\n\n### 5\\. Add In Overhead Costs\nThen, add your **overhead costs**. These are the fixed expenses that typically don’t change based on your revenue, such as salaries, rent, insurance, and other continuous expenses.\n\nSubtract the total of your **overhead costs** from your **gross profits** to determine your **operating income.**\n\nKeep in mind that if you have any non-operational expenses or revenue, such as interest or dividends, these will need to be added or subtracted from your operating income.\n\n### 6\\. Assess the Net Profit\nOnce you have your **operating income**,you will know your **net profit.** This is how much profit or loss your company had over the reporting period after revenue and expenses.\n\nYou can use this number to assess the financial health of your company and make changes if needed to avoid losses in the future.\n\n## P\\&L Statement Tools for Startups\nWhile it is possible to issue profit and loss statements manually, using financial management or [accounting software](https:\/\/startupsavant.com\/7-business-accounting-software-tools \"Link to Business Accounting Software Tools for Startups\") makes the process easier and faster. Here are some great options for startup profit and loss statement tools.\n\n### 1\\. QuickBooks\nWith [QuickBooks](https:\/\/quickbooks.intuit.com\/ca\/cash-flow\/ \"Link to QuickBooks\")’ suite of accounting software tools, startups can easily manage their finances as well as prepare profit and loss statements with ease.\n\n### 2\\. Lili\nIf you’re looking for a free P\\&L template as well as additional resources, [Lili](https:\/\/lili.co\/resources\/accounting\/profit-and-loss-statement \"Link to Lili\") offers a variety of information. Plus, if you utilize Lili’s accounting software, profit and loss statements are automatically generated for you.\n\n*Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.*\n\n### 3\\. FreshBooks\nFinally, [FreshBooks](https:\/\/www.freshbooks.com\/accounting-templates\/profit-and-loss \"Link to FreshBooks\") offers a free downloadable P\\&L template that is compatible with Google Sheets, Google Docs, PDFs, and more.","meta_canonical":null}

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Boilerpipe Text	Monitoring your startup’s finances is an integral part of knowing how to sustain and grow your business. A profit and loss (P&L) statement is one key element to measuring the health of your startup’s finances. This guide walks you through what a P&L statement is, why your company needs it, and how to prepare a profit and loss statement for your startup. P&L Statements for Startups Tracking a company’s profit and loss provides entrepreneurs with insight into their startup’s financial wellness and performance over a period of time, allowing them to make better decisions for their business. While it is possible to prepare a P&L statement using financial management software such as QuickBooks , knowing how to manually issue one can be valuable for entrepreneurs. Especially if they are looking to deeply familiarize themselves with their company’s financial position. What Is a Profit and Loss statement? A profit and loss (P&L) statement, commonly referred to as an income statement , is a summary of the net profit and loss of a company over a period of time. This is one of three financial reports businesses are required to prepare annually and quarterly, along with a cash flow statement and balance sheet . The P&L statement, specifically, indicates whether a business is profitable or not, how much profit is being made, and helps when filing taxes. Why Do I Need a P&L Statement for My Startup? As mentioned above, P&L statements are one of the three reports businesses are required to issue. However, these statements also provide value for entrepreneurs and their teams to better their company’s financial position. Tax Preparation Not only is a P&L used by startup founders to gauge the financial performance of their company, but the Internal Revenue Service (IRS) uses these statements to make tax assessments as well. Generates Feedback The amount of profit versus expenses may help you better understand how your product or service is performing. This feedback may help you troubleshoot and adapt to better reach your target market. How to Create a P&L statement Many businesses choose to use software to track their finances that can easily issue a profit and loss statement. However, if you’d rather prepare one manually, here are six easy steps to create a P&L statement for your startup. 1. Choose Your Time Period Whether you’re issuing an annual, quarterly, or monthly P&L sheet, your first step is to determine the reporting period you’re calculating for. Then, gather all of the information required to calculate revenue, expenses, and any other financial information from that period to create your statement. 2. Calculate Revenue Next, calculate your company’s revenue for your reporting period. This will include any money you gain from the sale of your company’s profits or services. It is helpful to keep these sales documented and organized as they occur. 3. Calculate Expenses After you have determined the amount of money you have coming in, you need to calculate the money your company is spending, otherwise known as expenses or costs of goods sold . This, however, does not include salaries, leases, or any other fixed expenses. 4. Find the Gross Profit Your next step is to determine your gross profit by subtracting your operating expenses (Step 2) from your revenue (Step 3) listed above. 5. Add In Overhead Costs Then, add your overhead costs . These are the fixed expenses that typically don’t change based on your revenue, such as salaries, rent, insurance, and other continuous expenses. Subtract the total of your overhead costs from your gross profits to determine your operating income. Keep in mind that if you have any non-operational expenses or revenue, such as interest or dividends, these will need to be added or subtracted from your operating income. 6. Assess the Net Profit Once you have your operating income , you will know your net profit. This is how much profit or loss your company had over the reporting period after revenue and expenses. You can use this number to assess the financial health of your company and make changes if needed to avoid losses in the future. P&L Statement Tools for Startups While it is possible to issue profit and loss statements manually, using financial management or accounting software makes the process easier and faster. Here are some great options for startup profit and loss statement tools. 1. QuickBooks With QuickBooks ’ suite of accounting software tools, startups can easily manage their finances as well as prepare profit and loss statements with ease. 2. Lili If you’re looking for a free P&L template as well as additional resources, Lili offers a variety of information. Plus, if you utilize Lili’s accounting software, profit and loss statements are automatically generated for you. Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC. 3. FreshBooks Finally, FreshBooks offers a free downloadable P&L template that is compatible with Google Sheets, Google Docs, PDFs, and more.
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[Home](https://startupsavant.com/) 2. [Finance](https://startupsavant.com/startup-finance) 3. How to Prepare a Profit and Loss (P\&L) Statement for Your Startup # How to Prepare a Profit and Loss (P\&L) Statement for Your Startup July 25, 2024 \\| Written by [Michaela Peyton](https://startupsavant.com/authors/michaela-dale) ![People working with financial statements and documents.](data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20width='1200'%20height='630'%20viewBox='0%200%201200%20630'%3E%3C/svg%3E) ![People working with financial statements and documents.](https://startupsavant.com/images/startup-center/articles/p-l-statement-startup.jpg) Monitoring your startup’s finances is an integral part of knowing how to sustain and grow your business. A profit and loss (P\&L) statement is one key element to measuring the health of your startup’s finances. This guide walks you through what a P\&L statement is, why your company needs it, and how to prepare a profit and loss statement for your startup. ## P\&L Statements for Startups Tracking a company’s profit and loss provides entrepreneurs with insight into their startup’s financial wellness and performance over a period of time, allowing them to make better decisions for their business. While it is possible to prepare a P\&L statement using financial management software such as [QuickBooks](https://www.dpbolvw.net/click-5628080-12724848?sid=%2Aw%3Asupsa%2Ap%3Astartup-finance%2Fhow-to-prepare-a-profit-and-loss-statement%2Al%3Atop "Link to QuickBooks"), knowing how to manually issue one can be valuable for entrepreneurs. Especially if they are looking to deeply familiarize themselves with their company’s financial position. ### What Is a Profit and Loss statement? A profit and loss (P\&L) statement, commonly referred to as an income statement, is a summary of the net profit and loss of a company over a period of time. This is one of three financial reports businesses are required to prepare annually and quarterly, along with a [cash flow statement](https://startupsavant.com/startup-finance/how-to-create-a-cash-flow-statement "Link to How to Create a Startup Cash Flow Statement") and [balance sheet](https://startupsavant.com/startup-finance/how-to-create-a-balance-sheet "Link to How to Create a Balance Sheet for a Startup"). The P\&L statement, specifically, indicates whether a business is profitable or not, how much profit is being made, and helps when filing taxes. ### Why Do I Need a P\&L Statement for My Startup? As mentioned above, P\&L statements are one of the three reports businesses are required to issue. However, these statements also provide value for entrepreneurs and their teams to better their company’s financial position. #### Tax Preparation Not only is a P\&L used by startup founders to gauge the financial performance of their company, but the [Internal Revenue Service (IRS)](https://www.irs.gov/ "Link to IRS") uses these statements to make tax assessments as well. #### Generates Feedback The amount of profit versus expenses may help you better understand how your product or service is performing. This feedback may help you troubleshoot and adapt to better reach your target market. ## How to Create a P\&L statement Many businesses choose to use software to track their finances that can easily issue a profit and loss statement. However, if you’d rather prepare one manually, here are six easy steps to create a P\&L statement for your startup. ### 1\. Choose Your Time Period Whether you’re issuing an annual, quarterly, or monthly P\&L sheet, your first step is to determine the reporting period you’re calculating for. Then, gather all of the information required to calculate revenue, expenses, and any other financial information from that period to create your statement. ### 2\. Calculate Revenue Next, calculate your company’s revenue for your reporting period. This will include any money you gain from the sale of your company’s profits or services. It is helpful to keep these sales documented and organized as they occur. ### 3\. Calculate Expenses After you have determined the amount of money you have coming in, you need to calculate the money your company is spending, otherwise known as expenses or costs of goods sold. This, however, does not include salaries, leases, or any other fixed expenses. ### 4\. Find the Gross Profit Your next step is to determine your gross profit by subtracting your operating expenses (Step 2) from your revenue (Step 3) listed above. ### 5\. Add In Overhead Costs Then, add your overhead costs. These are the fixed expenses that typically don’t change based on your revenue, such as salaries, rent, insurance, and other continuous expenses. Subtract the total of your overhead costs from your gross profits to determine your operating income. Keep in mind that if you have any non-operational expenses or revenue, such as interest or dividends, these will need to be added or subtracted from your operating income. ### 6\. Assess the Net Profit Once you have your operating income,you will know your net profit. This is how much profit or loss your company had over the reporting period after revenue and expenses. You can use this number to assess the financial health of your company and make changes if needed to avoid losses in the future. ## P\&L Statement Tools for Startups While it is possible to issue profit and loss statements manually, using financial management or [accounting software](https://startupsavant.com/7-business-accounting-software-tools "Link to Business Accounting Software Tools for Startups") makes the process easier and faster. Here are some great options for startup profit and loss statement tools. ### 1\. QuickBooks With [QuickBooks](https://quickbooks.intuit.com/ca/cash-flow/ "Link to QuickBooks")’ suite of accounting software tools, startups can easily manage their finances as well as prepare profit and loss statements with ease. ### 2\. Lili If you’re looking for a free P\&L template as well as additional resources, [Lili](https://lili.co/resources/accounting/profit-and-loss-statement "Link to Lili") offers a variety of information. Plus, if you utilize Lili’s accounting software, profit and loss statements are automatically generated for you. Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC. ### 3\. FreshBooks Finally, [FreshBooks](https://www.freshbooks.com/accounting-templates/profit-and-loss "Link to FreshBooks") offers a free downloadable P\&L template that is compatible with Google Sheets, Google Docs, PDFs, and more. 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Readable Markdown	Monitoring your startup’s finances is an integral part of knowing how to sustain and grow your business. A profit and loss (P\&L) statement is one key element to measuring the health of your startup’s finances. This guide walks you through what a P\&L statement is, why your company needs it, and how to prepare a profit and loss statement for your startup. ## P\&L Statements for Startups Tracking a company’s profit and loss provides entrepreneurs with insight into their startup’s financial wellness and performance over a period of time, allowing them to make better decisions for their business. While it is possible to prepare a P\&L statement using financial management software such as [QuickBooks](https://www.dpbolvw.net/click-5628080-12724848?sid=%2Aw%3Asupsa%2Ap%3Astartup-finance%2Fhow-to-prepare-a-profit-and-loss-statement%2Al%3Atop "Link to QuickBooks"), knowing how to manually issue one can be valuable for entrepreneurs. Especially if they are looking to deeply familiarize themselves with their company’s financial position. ### What Is a Profit and Loss statement? A profit and loss (P\&L) statement, commonly referred to as an income statement, is a summary of the net profit and loss of a company over a period of time. This is one of three financial reports businesses are required to prepare annually and quarterly, along with a [cash flow statement](https://startupsavant.com/startup-finance/how-to-create-a-cash-flow-statement "Link to How to Create a Startup Cash Flow Statement") and [balance sheet](https://startupsavant.com/startup-finance/how-to-create-a-balance-sheet "Link to How to Create a Balance Sheet for a Startup"). The P\&L statement, specifically, indicates whether a business is profitable or not, how much profit is being made, and helps when filing taxes. ### Why Do I Need a P\&L Statement for My Startup? As mentioned above, P\&L statements are one of the three reports businesses are required to issue. However, these statements also provide value for entrepreneurs and their teams to better their company’s financial position. #### Tax Preparation Not only is a P\&L used by startup founders to gauge the financial performance of their company, but the [Internal Revenue Service (IRS)](https://www.irs.gov/ "Link to IRS") uses these statements to make tax assessments as well. #### Generates Feedback The amount of profit versus expenses may help you better understand how your product or service is performing. This feedback may help you troubleshoot and adapt to better reach your target market. ## How to Create a P\&L statement Many businesses choose to use software to track their finances that can easily issue a profit and loss statement. However, if you’d rather prepare one manually, here are six easy steps to create a P\&L statement for your startup. ### 1\. Choose Your Time Period Whether you’re issuing an annual, quarterly, or monthly P\&L sheet, your first step is to determine the reporting period you’re calculating for. Then, gather all of the information required to calculate revenue, expenses, and any other financial information from that period to create your statement. ### 2\. Calculate Revenue Next, calculate your company’s revenue for your reporting period. This will include any money you gain from the sale of your company’s profits or services. It is helpful to keep these sales documented and organized as they occur. ### 3\. Calculate Expenses After you have determined the amount of money you have coming in, you need to calculate the money your company is spending, otherwise known as expenses or costs of goods sold. This, however, does not include salaries, leases, or any other fixed expenses. ### 4\. Find the Gross Profit Your next step is to determine your gross profit by subtracting your operating expenses (Step 2) from your revenue (Step 3) listed above. ### 5\. Add In Overhead Costs Then, add your overhead costs. These are the fixed expenses that typically don’t change based on your revenue, such as salaries, rent, insurance, and other continuous expenses. Subtract the total of your overhead costs from your gross profits to determine your operating income. Keep in mind that if you have any non-operational expenses or revenue, such as interest or dividends, these will need to be added or subtracted from your operating income. ### 6\. Assess the Net Profit Once you have your operating income,you will know your net profit. This is how much profit or loss your company had over the reporting period after revenue and expenses. You can use this number to assess the financial health of your company and make changes if needed to avoid losses in the future. ## P\&L Statement Tools for Startups While it is possible to issue profit and loss statements manually, using financial management or [accounting software](https://startupsavant.com/7-business-accounting-software-tools "Link to Business Accounting Software Tools for Startups") makes the process easier and faster. Here are some great options for startup profit and loss statement tools. ### 1\. QuickBooks With [QuickBooks](https://quickbooks.intuit.com/ca/cash-flow/ "Link to QuickBooks")’ suite of accounting software tools, startups can easily manage their finances as well as prepare profit and loss statements with ease. ### 2\. Lili If you’re looking for a free P\&L template as well as additional resources, [Lili](https://lili.co/resources/accounting/profit-and-loss-statement "Link to Lili") offers a variety of information. Plus, if you utilize Lili’s accounting software, profit and loss statements are automatically generated for you. Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC. ### 3\. FreshBooks Finally, [FreshBooks](https://www.freshbooks.com/accounting-templates/profit-and-loss "Link to FreshBooks") offers a free downloadable P\&L template that is compatible with Google Sheets, Google Docs, PDFs, and more.
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