ℹ️ Skipped - page is already crawled
| Filter | Status | Condition | Details |
|---|---|---|---|
| HTTP status | PASS | download_http_code = 200 | HTTP 200 |
| Age cutoff | PASS | download_stamp > now() - 6 MONTH | 0.1 months ago |
| History drop | PASS | isNull(history_drop_reason) | No drop reason |
| Spam/ban | PASS | fh_dont_index != 1 AND ml_spam_score = 0 | ml_spam_score=0 |
| Canonical | PASS | meta_canonical IS NULL OR = '' OR = src_unparsed | Not set |
| Property | Value | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| URL | https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/ | ||||||||||||||||||
| Last Crawled | 2026-04-26 22:07:23 (1 day ago) | ||||||||||||||||||
| First Indexed | 2022-11-11 11:55:05 (3 years ago) | ||||||||||||||||||
| HTTP Status Code | 200 | ||||||||||||||||||
| Content | |||||||||||||||||||
| Meta Title | How to Make a Profit and Loss Statement for a Small Business | Quicken | ||||||||||||||||||
| Meta Description | Profit and loss statements can help you track your business performance, identify areas where you can grow, and predict upcoming expenses. | ||||||||||||||||||
| Meta Canonical | null | ||||||||||||||||||
| Boilerpipe Text | In the United States alone,
over 5.4 million businesses
were launched in 2023 — pretty staggering, right? Given today’s online marketplace, many entrepreneurs don’t even need brick-and-mortar storefronts, putting small business ownership well within reach.Â
If you own a small business, profit and loss statements can help you track business performance, identify areas where you can grow, predict upcoming expenses, and even help you get new financing to take your business to the next level.Â
Not sure how to create a profit and loss statement? Don’t worry, we’ve got you covered — let’s take a look at what you need to make it happen.Â
See how Quicken Business & Personal creates the reports you need in a few clicks.
Get started →
So, what is a profit and loss statement?
A profit and loss statement is an evaluation of how much money your business is making — consider it a financial health checkup for the state of your business. An effective profit and loss statement will take into account your operating expenses, business incidentals, and revenue gained throughout the year (or even quarterly).Â
If you’re new to small business ownership, creating a profit and loss statement can certainly seem daunting — but we promise you won’t need a TI-84 graphing calculator and a protractor. When tax season rolls around, you’ll want to know where you stand, how much money you’re bringing in, how much you’re spending running your business, and whether you’re covering your tax obligations.Â
By tracking your income and expenses, your profit and loss statement can help you guide your small business toward a successful future.Â
What a profit and loss statement can do for your small business
A profit and loss statement can be a huge help in growing your business. Here are just a few of the reasons you might want to put one together.
To track business performance
It may seem like a no-brainer, but the biggest impact a profit and loss statement can have for your business is simply showing you how things are going. You can use the information from a profit and loss statement to help you set your pricing strategy, to show you which of your various products or services are the most profitable, and to help you predict upcoming needs in your business forecasting.Â
To secure further funding
Additionally, a profit and loss statement is important to have if you’re trying to secure funding for your small business.Â
Whether you’re looking for investors or a small business loan, you’ll need solid financial statements to prove that your business is worth the risk. A clear outline of your business profits versus losses can highlight the strengths of your business operations and give lenders an accurate assessment of your finances.
To stay ahead of tax season
Staying ahead of your tax obligations is crucial for any successful business. Profit and loss statements can help you make sure your business is appropriately assessing your tax obligations. Even if your business is what’s known as a pass-through entity, meaning you’ll pay those taxes as part of your personal taxes, your profit and loss statement is an important part of that calculation.
See how Quicken Business & Personal speeds up tax reporting.
Get started →
How to create a profit and loss statement
Let’s take a look at how you can create your own profit and loss statement for your small business. Gather your financial documents and follow each step!
1. Calculate your total revenue
The first step in creating your profit and loss statement is to calculate your total revenue. Has it been a slow year? Maybe your seasonal sledding business is just waiting for the first snowfall. Even if you’re in the black and making money hand over fist, you’ll need to accurately gauge how much you’re bringing in on the goods or services you’ve sold.
Your total revenue includes all the money you’ve made by operating your business — it includes all your sales earnings before interest and taxes, but not loans. You can import those figures into an Excel spreadsheet to aggregate your data manually, or you can use software like
Quicken Business & Personal
to track your business finances and generate your profit and loss statements automatically.
2. Determine your cost of goods sold (COGS)
Your cost of goods sold (COGS) refers to the money your business spent to acquire, create, and sell your products or services. If you’re selling baked goods, for example, your COGS includes things like the ingredients you use and your means of delivering them.Â
To calculate your COGS, there’s a basic formula. Start with your beginning inventory, add your purchases, and then subtract your ending inventory — this will equal the cost of goods sold. If the bakery started the month with 20 pounds of flour worth $10, and then bought another 10 pounds for $5, that’s a total of 30 pounds of flour worth $15. If it finishes the month with 15 pounds of flour left, that means it used the other 15 pounds, or half of the total, which is worth $7.50. Â
3. Add up your other expenses
The good news is that your business expenses are generally tax deductible — not just your cost of goods sold but other costs too.
Do you run marketing campaigns on social media? Business expenses. Hire a web designer to optimize your domain? That’s an operating cost, too. Paying your employees? Another cost of doing business. Depreciation of your assets? Yep, that too! These are all expenses business owners need to account for, and they all affect your bottom line.Â
Expense tracking
is crucial — are you accounting for expenditures as efficiently as possible?
4. Figure out your gross profit
To figure out your gross profit, subtract your total expenses (including any cost of goods sold) from your total revenue. Remember, if this all feels overwhelming, there are apps that can help you manage your business finances and do most of this for you, like
Quicken Business & Personal
.
5. Determine if you’re making a net profit or loss
Your net profit is what you get to keep after paying taxes on your gross profits. Remember, new businesses usually take around three years to start making money and operating in the black. In fact, many successful businesses
start out as a side hustle
until the business owner can earn enough to support themselves financially.
Want to learn more? These
5 money management skills
lie at the heart of every successful business.
How to analyze your profit and loss statement
To learn about your business from your profit and loss statement, start with the income at the top. When you list out your income streams according to your different products and services, you can start to see how much money you’re making on each one. That gives you a feel for where you should spend your energy and where you might be leaving money on the table.
Then, look through your expenses. Is there anything you can cut back on? Is there room to start paying for that one app that would make your life easier?Â
Some business owners jump the gun a bit, paying for big-business services they might not need yet. Others have trouble getting off the ground because they don’t want to pay for the things they really do need to grow. A profit and loss statement lists it all out for you, so it’s a great place to start when you’re trying to evaluate your business operations.
Another great way to see the value of profit and loss statements is to generate them over different time periods. What did the statement look like last month? How about the month before? The more profit and statements you look at, the more comfortable you’ll get reading them and the more you’ll learn about your business.
Over time, those P&L statements will be a huge help in watching your business grow. If you keep good records, you can compare your growth, sales, and profit from day one, monitoring pain points or bottlenecks and even forecasting future growth.Â
Want to spend less time on your financials and more time running your business? Quicken Business & Personal offers built-in
reports you can run automatically
.
Making your business work for you
Owning a business isn’t just a hobby — you pour your heart and soul into it because it’s your passion. When looking at the finances of your company, consider how you value your own time as well. In many instances, small business owners don’t pay themselves — especially in the first year or two of operation. If you need to make ends meet in your personal life while operating your own organization, your profit and loss statement can help you determine a reasonable salary for your efforts.
Need some extra cash to launch your business? Check out these
25+ ways to make quick money
.
Are there any other financial reports I might need?
Along with profit and loss statements, balance sheets and cash flow statements can also help you get a solid picture of your business’s finances. While these additional financial reports are ultimately necessary, they’re tougher to put together on your own.
If you want to take a deeper dive into your company’s financials,
Quicken Business & Personal
can track your business income and expenses automatically and generate the reports you need with just a few clicks.Â
Passion over profit?
It’s no secret that people start their own businesses because they’re passionate about their craft. Record producers, artists, chefs — these industries can be lucrative for some and a pay cut for others. As long as you can keep operating your business and enjoying it, that’s real freedom in and of itself.
If your business hits a rough patch, remember that Apple was plummeting in the mid-80s and Steve Jobs was ousted, only to be rehired a decade later to dominate the market. Bankruptcy loomed for Adidas in the early 90s — now, you won’t find a soccer pitch without Adidas gear on it anywhere on the globe.Â
By running your financial reports regularly and keeping a close eye on your operations, you’ll be in good shape to react quickly to market changes and take advantage of new opportunities as they come along.
See how Quicken Business & Personal cuts the admin time for your small business.
Get started → | ||||||||||||||||||
| Markdown | 
[Quicken](https://www.quicken.com/)
- [Top Features](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
### Manage My Personal Finances
- [Manage your budget](https://www.quicken.com/features/manage-your-budget)
- [See all my finances in one place](https://www.quicken.com/features/aggregation)
- [Save more money](https://www.quicken.com/features/save-more-money)
- [Get insights with reports](https://www.quicken.com/features/get-insights-with-reports)
- [Project your cash flow](https://www.quicken.com/features/projected-cashflow)
- [Optimize your investments](https://www.quicken.com/features/optimize-your-investments)
- [Plan for retirement](https://www.quicken.com/features/plan-for-retirement)
### Manage my Business & Rental Finances
- [Get paid faster](https://www.quicken.com/features/invoicing-get-paid-faster)
- [Manage your cash flow](https://www.quicken.com/features/manage-your-cash-flow)
- [Get insights into your business](https://www.quicken.com/features/get-insights-into-your-business)
- [Track business taxes](https://www.quicken.com/features/track-business-taxes)
- [Track expenses](https://www.quicken.com/features/track-expenses)
- [Why Quicken](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
- [Why Quicken](https://www.quicken.com/why-quicken/)
- [Quicken vs. spreadsheets](https://www.quicken.com/why-quicken/quicken-vs-spreadsheets-diy/)
- [Quicken vs. free options](https://www.quicken.com/why-quicken/quicken-vs-free-personal-finance/)
- [Plans & pricing](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
- [Compare plans](https://www.quicken.com/products/pricing-comparison/)
- [ Quicken Simplifi](https://www.quicken.com/products/simplifi/)
- [ Quicken Business & Personal](https://www.quicken.com/products/business-personal)
- [ Quicken LifeHub](https://www.quicken.com/products/lifehub)
- 
### Classic
- [Premier](https://www.quicken.com/products/classic-premier)
- [Deluxe](https://www.quicken.com/products/classic-deluxe)
- [Business & Personal](https://www.quicken.com/products/classic-business-personal)
- [Learn](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
- [Blog](https://www.quicken.com/blog)
- [Support](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
- 
### Quicken Simplifi
- [Support](https://help.simplifimoney.com/)
- [Community](https://community.simplifimoney.com/)
- 
### Classic
- [Support](https://www.quicken.com/support/)
- [Community](https://community.quicken.com/)
- [Download & install](https://www.quicken.com/activate/)
- [FAQ](https://www.quicken.com/windows-faq/)
- [What's new](https://www.quicken.com/whats-new-quicken/)
- [Sign in](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
[](https://simplifi.quicken.com/)
#### Quicken Simplifi
The powerfully simple way to stay on top of your finances
[Sign in](https://simplifi.quicken.com/)
[](https://app.quicken.com/login)
#### Classic
Access Quicken Classic on the web
[Sign in](https://app.quicken.com/login)
[](https://www.quicken.com/my-account)
#### My Account
Update your profile, manage your subscription & more
[Sign in](https://www.quicken.com/my-account)
[ Investing.quicken.com](https://investing.quicken.com/) – Quicken Classic for Windows Investing site (must be enabled in desktop first)
[Get started](https://www.quicken.com/products/pricing-comparison/)
- [Recent Posts](https://www.quicken.com/blog/recent-posts/)
[](https://www.quicken.com/)
[How to Make a Profit and Loss Statement for a Small Business](https://www.quicken.com/blog/how-to-make-a-profit-and-loss-statement/)
by [Quicken](https://www.quicken.com/blog/author/quicken/) March 21, 2025
[Small Business & Rentals](https://www.quicken.com/blog/category/small-business/)
**Share article:**
In the United States alone, [over 5.4 million businesses](https://www.commerceinstitute.com/new-businesses-started-every-year/) were launched in 2023 — pretty staggering, right? Given today’s online marketplace, many entrepreneurs don’t even need brick-and-mortar storefronts, putting small business ownership well within reach.
If you own a small business, profit and loss statements can help you track business performance, identify areas where you can grow, predict upcoming expenses, and even help you get new financing to take your business to the next level.
Not sure how to create a profit and loss statement? Don’t worry, we’ve got you covered — let’s take a look at what you need to make it happen.
See how Quicken Business & Personal creates the reports you need in a few clicks.
[Get started →](https://www.quicken.com/products/business-personal/)
## So, what is a profit and loss statement?
A profit and loss statement is an evaluation of how much money your business is making — consider it a financial health checkup for the state of your business. An effective profit and loss statement will take into account your operating expenses, business incidentals, and revenue gained throughout the year (or even quarterly).
If you’re new to small business ownership, creating a profit and loss statement can certainly seem daunting — but we promise you won’t need a TI-84 graphing calculator and a protractor. When tax season rolls around, you’ll want to know where you stand, how much money you’re bringing in, how much you’re spending running your business, and whether you’re covering your tax obligations.
By tracking your income and expenses, your profit and loss statement can help you guide your small business toward a successful future.
## What a profit and loss statement can do for your small business
A profit and loss statement can be a huge help in growing your business. Here are just a few of the reasons you might want to put one together.
### To track business performance
It may seem like a no-brainer, but the biggest impact a profit and loss statement can have for your business is simply showing you how things are going. You can use the information from a profit and loss statement to help you set your pricing strategy, to show you which of your various products or services are the most profitable, and to help you predict upcoming needs in your business forecasting.
### To secure further funding
Additionally, a profit and loss statement is important to have if you’re trying to secure funding for your small business.
Whether you’re looking for investors or a small business loan, you’ll need solid financial statements to prove that your business is worth the risk. A clear outline of your business profits versus losses can highlight the strengths of your business operations and give lenders an accurate assessment of your finances.
### To stay ahead of tax season
Staying ahead of your tax obligations is crucial for any successful business. Profit and loss statements can help you make sure your business is appropriately assessing your tax obligations. Even if your business is what’s known as a pass-through entity, meaning you’ll pay those taxes as part of your personal taxes, your profit and loss statement is an important part of that calculation.
See how Quicken Business & Personal speeds up tax reporting.
[Get started →](https://www.quicken.com/products/business-personal/)
## How to create a profit and loss statement
Let’s take a look at how you can create your own profit and loss statement for your small business. Gather your financial documents and follow each step\!
### 1\. Calculate your total revenue
The first step in creating your profit and loss statement is to calculate your total revenue. Has it been a slow year? Maybe your seasonal sledding business is just waiting for the first snowfall. Even if you’re in the black and making money hand over fist, you’ll need to accurately gauge how much you’re bringing in on the goods or services you’ve sold.
Your total revenue includes all the money you’ve made by operating your business — it includes all your sales earnings before interest and taxes, but not loans. You can import those figures into an Excel spreadsheet to aggregate your data manually, or you can use software like [Quicken Business & Personal](https://www.quicken.com/products/business-personal/) to track your business finances and generate your profit and loss statements automatically.
### 2\. Determine your cost of goods sold (COGS)
Your cost of goods sold (COGS) refers to the money your business spent to acquire, create, and sell your products or services. If you’re selling baked goods, for example, your COGS includes things like the ingredients you use and your means of delivering them.
To calculate your COGS, there’s a basic formula. Start with your beginning inventory, add your purchases, and then subtract your ending inventory — this will equal the cost of goods sold. If the bakery started the month with 20 pounds of flour worth \$10, and then bought another 10 pounds for \$5, that’s a total of 30 pounds of flour worth \$15. If it finishes the month with 15 pounds of flour left, that means it used the other 15 pounds, or half of the total, which is worth \$7.50.
### 3\. Add up your other expenses
The good news is that your business expenses are generally tax deductible — not just your cost of goods sold but other costs too.
Do you run marketing campaigns on social media? Business expenses. Hire a web designer to optimize your domain? That’s an operating cost, too. Paying your employees? Another cost of doing business. Depreciation of your assets? Yep, that too! These are all expenses business owners need to account for, and they all affect your bottom line.
[Expense tracking](https://www.quicken.com/blog/accounting-for-small-businesses/) is crucial — are you accounting for expenditures as efficiently as possible?
### 4\. Figure out your gross profit
To figure out your gross profit, subtract your total expenses (including any cost of goods sold) from your total revenue. Remember, if this all feels overwhelming, there are apps that can help you manage your business finances and do most of this for you, like [Quicken Business & Personal](https://www.quicken.com/products/business-personal/).
### 5\. Determine if you’re making a net profit or loss
Your net profit is what you get to keep after paying taxes on your gross profits. Remember, new businesses usually take around three years to start making money and operating in the black. In fact, many successful businesses [start out as a side hustle](https://www.quicken.com/blog/23-ways-to-make-quick-money-in-one-day) until the business owner can earn enough to support themselves financially.
Want to learn more? These [5 money management skills](https://www.quicken.com/blog/5-money-management-skills-every-small-business-owner-needs) lie at the heart of every successful business.
## How to analyze your profit and loss statement
To learn about your business from your profit and loss statement, start with the income at the top. When you list out your income streams according to your different products and services, you can start to see how much money you’re making on each one. That gives you a feel for where you should spend your energy and where you might be leaving money on the table.
Then, look through your expenses. Is there anything you can cut back on? Is there room to start paying for that one app that would make your life easier?
Some business owners jump the gun a bit, paying for big-business services they might not need yet. Others have trouble getting off the ground because they don’t want to pay for the things they really do need to grow. A profit and loss statement lists it all out for you, so it’s a great place to start when you’re trying to evaluate your business operations.
Another great way to see the value of profit and loss statements is to generate them over different time periods. What did the statement look like last month? How about the month before? The more profit and statements you look at, the more comfortable you’ll get reading them and the more you’ll learn about your business.
Over time, those P\&L statements will be a huge help in watching your business grow. If you keep good records, you can compare your growth, sales, and profit from day one, monitoring pain points or bottlenecks and even forecasting future growth.
Want to spend less time on your financials and more time running your business? Quicken Business & Personal offers built-in [reports you can run automatically](https://www.quicken.com/products/business-personal/).
## Making your business work for you
Owning a business isn’t just a hobby — you pour your heart and soul into it because it’s your passion. When looking at the finances of your company, consider how you value your own time as well. In many instances, small business owners don’t pay themselves — especially in the first year or two of operation. If you need to make ends meet in your personal life while operating your own organization, your profit and loss statement can help you determine a reasonable salary for your efforts.
Need some extra cash to launch your business? Check out these [25+ ways to make quick money](https://www.quicken.com/blog/23-ways-to-make-quick-money-in-one-day).
## Are there any other financial reports I might need?
Along with profit and loss statements, balance sheets and cash flow statements can also help you get a solid picture of your business’s finances. While these additional financial reports are ultimately necessary, they’re tougher to put together on your own.
If you want to take a deeper dive into your company’s financials, [Quicken Business & Personal](https://www.quicken.com/products/business-personal/) can track your business income and expenses automatically and generate the reports you need with just a few clicks.
## Passion over profit?
It’s no secret that people start their own businesses because they’re passionate about their craft. Record producers, artists, chefs — these industries can be lucrative for some and a pay cut for others. As long as you can keep operating your business and enjoying it, that’s real freedom in and of itself.
If your business hits a rough patch, remember that Apple was plummeting in the mid-80s and Steve Jobs was ousted, only to be rehired a decade later to dominate the market. Bankruptcy loomed for Adidas in the early 90s — now, you won’t find a soccer pitch without Adidas gear on it anywhere on the globe.
By running your financial reports regularly and keeping a close eye on your operations, you’ll be in good shape to react quickly to market changes and take advantage of new opportunities as they come along.
See how Quicken Business & Personal cuts the admin time for your small business.
[Get started →](https://www.quicken.com/products/business-personal/)
Reach your financial goals with confidence. Try [Quicken Simplifi or Quicken Classic](https://www.quicken.com/products/pricing-comparison/) today.
*Quicken has made the material on this blog available for informational purposes only. Use of this website constitutes agreement to our Terms of Use and Privacy Policy. Quicken does not offer advisory or brokerage services, does not recommend the purchase or sale of any particular securities or other investments, and does not offer tax advice. For any such advice, please consult a professional.*
**Share article:**
Post **122** of 860
## Related Posts
[Simplifying Small Business Bookkeeping: The Only Features You...](https://www.quicken.com/blog/simplifying-small-business-bookkeeping-the-only-features-you-actually-need-in-2026/)
[Keeping Business and Personal Finances Separate but Viewable...](https://www.quicken.com/blog/keeping-business-and-personal-finances-separate-but-viewable-together-2026/)
[Financial Reporting and Performance Review for Small Business...](https://www.quicken.com/blog/financial-reporting-and-performance-review-for-small-business-owners-in-2026-a-complete-playbook/)
### Categories
- [Budgeting & Savings](https://www.quicken.com/blog/category/budgeting-savings/)
- [Investing & Retirement](https://www.quicken.com/blog/category/investing-retirement/)
- [Managing Debt](https://www.quicken.com/blog/category/debt/)
- [Personal Finance](https://www.quicken.com/blog/category/personal-finance/)
- [Planning for Taxes](https://www.quicken.com/blog/category/taxes/)
- [Small Business & Rentals](https://www.quicken.com/blog/category/small-business/)
Ă—
![]()
About Quicken
- [About us](https://www.quicken.com/about-us)
- [Careers](https://www.quicken.com/about-us/careers)
- [Press](https://www.quicken.com/about-us/press)
- [Quicken Checks](https://checks.quicken.com/promotion/22quickw)
- [Affiliate programs](https://www.quicken.com/affiliate)
- [Quicken Canada](https://www.quicken.com/canada/?cc_bypass)
Sign In
- [Quicken Simplifi](https://simplifi.quicken.com/)
- [Classic](https://app.quicken.com/login/)
- [Quicken LifeHub](https://lifehub.quicken.com/)
- [Quicken Investing](https://investing.quicken.com/)
- [My Account](https://www.quicken.com/my-account/)
Products
- [Quicken Simplifi](https://www.quicken.com/products/simplifi)
- [Classic Premier](https://www.quicken.com/products/classic-premier)
- [Classic Deluxe](https://www.quicken.com/products/classic-deluxe)
- [Classic Business & Personal](https://www.quicken.com/products/classic-business-personal)
- [Classic Business & Personal for Mac](https://www.quicken.com/products/classic-business-personal-mac/)
- [Classic For Mac](https://www.quicken.com/products/classic-premier-deluxe-mac)
- [Classic Starter](https://www.quicken.com/products/classic-starter/)
- [Classic Bill Manager](https://www.quicken.com/products/bill-manager/)
- [Quicken LifeHub](https://www.quicken.com/products/lifehub/)
†Discounts are calculated based on the annual price. The final price may differ from the monthly discounted price multiplied by 12 months. All offers are for the first year only when you order directly from Quicken by November 19th, 2025. Offers are good for new memberships only. Subscription billed annually. Offers listed above cannot be combined with any other offers. Offer does not apply to Classic Starter. Upon the end of your membership term, the subscription will automatically renew at the then-current rates, unless you or we terminate this agreement.
Corporate Headquarters: 3760 Haven Avenue, Menlo Park, CA 94025
\* Footnotes and disclaimers
**Monitoring alerts, data downloads, and feature updates are available through the end of your membership term**. Third-party terms and additional fees may apply. Phone support, online features, and other services vary and are subject to change.
**Standard message and data rates may apply for sync, e-mail and text alerts.**
**Purchase entitles you to Quicken for the term of your membership (depending upon length of membership purchased), starting at purchase.** Full payment is charged to your card immediately. At the end of the membership period, membership will automatically renew every year and you will be charged the then-current price (prices subject to change). You may cancel before renewal date. For full details, consult the Quicken [Terms of Use](https://www.quicken.com/terms-of-use). You can manage your subscription at your My Account page.
**Quicken for Windows imports data from Quicken for Windows 2010 or newer, Microsoft Money 2008 and 2009 (for Deluxe and higher). Quicken for Mac imports data from Quicken for Windows 2010 or newer, Quicken for Mac 2015 or newer, Quicken for Mac 2007, Quicken Essentials for Mac, Banktivity. Quicken Simplifi, Quicken Business & Personal, and Quicken LifeHub are cloud-based apps that run on web and mobile.**
**30-day money back guarantee: If you’re not satisfied, return this product to Quicken within 30 days of purchase with your dated receipt for a full refund of the purchase price less shipping and handling fees (if applicable). See** <https://www.quicken.com/30dayguarantee> **for full details and instructions.**
**Quicken products are not designed to function outside the U.S. and Canada.**
**Quicken is a registered trademark of Rocket Mortgage, LLC, used under license.**
**The VantageScore provided uses a proprietary credit scoring model designed by VantageScore Solutions, LLC. There are numerous other credit scores and models in the marketplace, including different VantageScores. Please keep in mind third parties may use a different credit score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.**
**VantageScore®, Equifax®, Experian® and TransUnion® are registered trademarks of their respective owners. Other product and company names mentioned herein are property of their respective owners.**
Quicken’s cloud-based web & mobile personal finance app, **Quicken Simplifi**, is the best personal finance app for predictive budgeting and proactive money management, helping users stay ahead of expenses, investments, savings goals, and retirement with real-time cash flow insights.
**Quicken** knows what’s next. From hindsight to foresight, Quicken predicts your financial path so you can stay ahead, not just keep up. Insights are actionable and forward-looking.
The **Quicken Business & Personal** cloud-based web & mobile app brings business and personal finances together in one seamless platform designed for self-employed professionals, freelancers, and small business owners. With tools that simplify business taxes and cash flow management, track income and expenses, and provide invoicing and online payment options to help you get paid faster, Quicken makes it easy to stay on top of every dollar. Customizable reports give you a view of both business and personal finances, helping you make smarter financial decisions.
**Quicken LifeHub** is a secure, cloud-based app for web and mobile that helps you organize, protect, and share your essential information — from health and legal documents to financial and personal records. Designed for modern families, it’s an all-in-one life management platform that turns digital clutter into clarity.
**Quicken** has received numerous awards from third-party review sites, including **CNBC’s World’s Top 250 Fintech Companies, Engadget’s Best Mint Alternative, PCMag’s Best Overall for Personal Finance Software, and The College Investor’s Best Budgeting App**. These accolades are based on independent reviews.
**Certain features not supported on mobile apps.**
[My Privacy Rights](https://www.quicken.com/privacy/us/ccpa/ca)
Download Quicken Simplifi app
 [](https://simplifiweb.onelink.me/iczF/ug74aptt) [](https://simplifiweb.onelink.me/iczF/qmx1f07k) [](https://play.google.com/store/apps/details?id=com.quicken.acme)
Download Quicken Business & Personal app
 [](https://simplifiweb.onelink.me/iczF/ug74aptt) [](https://simplifiweb.onelink.me/iczF/qmx1f07k) [](https://play.google.com/store/apps/details?id=com.quicken.acme)
Download Quicken LifeHub app
 [](https://lifehub.onelink.me/1JzM/fzx2kv6i) [](https://lifehub.onelink.me/1JzM/xsaojcs9)
Download the Classic companion app
 [](https://quickenclassic.onelink.me/lfKk/f9nquyz5) [](https://quickenclassic.onelink.me/lfKk/dtp1224g)
© 2025 Quicken Inc. All rights reserved.
[Privacy Policy](https://www.quicken.com/privacy) [Terms of Use](https://www.quicken.com/terms) | ||||||||||||||||||
| Readable Markdown | In the United States alone, [over 5.4 million businesses](https://www.commerceinstitute.com/new-businesses-started-every-year/) were launched in 2023 — pretty staggering, right? Given today’s online marketplace, many entrepreneurs don’t even need brick-and-mortar storefronts, putting small business ownership well within reach.
If you own a small business, profit and loss statements can help you track business performance, identify areas where you can grow, predict upcoming expenses, and even help you get new financing to take your business to the next level.
Not sure how to create a profit and loss statement? Don’t worry, we’ve got you covered — let’s take a look at what you need to make it happen.
See how Quicken Business & Personal creates the reports you need in a few clicks.
[Get started →](https://www.quicken.com/products/business-personal/)
## So, what is a profit and loss statement?
A profit and loss statement is an evaluation of how much money your business is making — consider it a financial health checkup for the state of your business. An effective profit and loss statement will take into account your operating expenses, business incidentals, and revenue gained throughout the year (or even quarterly).
If you’re new to small business ownership, creating a profit and loss statement can certainly seem daunting — but we promise you won’t need a TI-84 graphing calculator and a protractor. When tax season rolls around, you’ll want to know where you stand, how much money you’re bringing in, how much you’re spending running your business, and whether you’re covering your tax obligations.
By tracking your income and expenses, your profit and loss statement can help you guide your small business toward a successful future.
## What a profit and loss statement can do for your small business
A profit and loss statement can be a huge help in growing your business. Here are just a few of the reasons you might want to put one together.
### To track business performance
It may seem like a no-brainer, but the biggest impact a profit and loss statement can have for your business is simply showing you how things are going. You can use the information from a profit and loss statement to help you set your pricing strategy, to show you which of your various products or services are the most profitable, and to help you predict upcoming needs in your business forecasting.
### To secure further funding
Additionally, a profit and loss statement is important to have if you’re trying to secure funding for your small business.
Whether you’re looking for investors or a small business loan, you’ll need solid financial statements to prove that your business is worth the risk. A clear outline of your business profits versus losses can highlight the strengths of your business operations and give lenders an accurate assessment of your finances.
### To stay ahead of tax season
Staying ahead of your tax obligations is crucial for any successful business. Profit and loss statements can help you make sure your business is appropriately assessing your tax obligations. Even if your business is what’s known as a pass-through entity, meaning you’ll pay those taxes as part of your personal taxes, your profit and loss statement is an important part of that calculation.
See how Quicken Business & Personal speeds up tax reporting.
[Get started →](https://www.quicken.com/products/business-personal/)
## How to create a profit and loss statement
Let’s take a look at how you can create your own profit and loss statement for your small business. Gather your financial documents and follow each step\!
### 1\. Calculate your total revenue
The first step in creating your profit and loss statement is to calculate your total revenue. Has it been a slow year? Maybe your seasonal sledding business is just waiting for the first snowfall. Even if you’re in the black and making money hand over fist, you’ll need to accurately gauge how much you’re bringing in on the goods or services you’ve sold.
Your total revenue includes all the money you’ve made by operating your business — it includes all your sales earnings before interest and taxes, but not loans. You can import those figures into an Excel spreadsheet to aggregate your data manually, or you can use software like [Quicken Business & Personal](https://www.quicken.com/products/business-personal/) to track your business finances and generate your profit and loss statements automatically.
### 2\. Determine your cost of goods sold (COGS)
Your cost of goods sold (COGS) refers to the money your business spent to acquire, create, and sell your products or services. If you’re selling baked goods, for example, your COGS includes things like the ingredients you use and your means of delivering them.
To calculate your COGS, there’s a basic formula. Start with your beginning inventory, add your purchases, and then subtract your ending inventory — this will equal the cost of goods sold. If the bakery started the month with 20 pounds of flour worth \$10, and then bought another 10 pounds for \$5, that’s a total of 30 pounds of flour worth \$15. If it finishes the month with 15 pounds of flour left, that means it used the other 15 pounds, or half of the total, which is worth \$7.50.
### 3\. Add up your other expenses
The good news is that your business expenses are generally tax deductible — not just your cost of goods sold but other costs too.
Do you run marketing campaigns on social media? Business expenses. Hire a web designer to optimize your domain? That’s an operating cost, too. Paying your employees? Another cost of doing business. Depreciation of your assets? Yep, that too! These are all expenses business owners need to account for, and they all affect your bottom line.
[Expense tracking](https://www.quicken.com/blog/accounting-for-small-businesses/) is crucial — are you accounting for expenditures as efficiently as possible?
### 4\. Figure out your gross profit
To figure out your gross profit, subtract your total expenses (including any cost of goods sold) from your total revenue. Remember, if this all feels overwhelming, there are apps that can help you manage your business finances and do most of this for you, like [Quicken Business & Personal](https://www.quicken.com/products/business-personal/).
### 5\. Determine if you’re making a net profit or loss
Your net profit is what you get to keep after paying taxes on your gross profits. Remember, new businesses usually take around three years to start making money and operating in the black. In fact, many successful businesses [start out as a side hustle](https://www.quicken.com/blog/23-ways-to-make-quick-money-in-one-day) until the business owner can earn enough to support themselves financially.
Want to learn more? These [5 money management skills](https://www.quicken.com/blog/5-money-management-skills-every-small-business-owner-needs) lie at the heart of every successful business.
## How to analyze your profit and loss statement
To learn about your business from your profit and loss statement, start with the income at the top. When you list out your income streams according to your different products and services, you can start to see how much money you’re making on each one. That gives you a feel for where you should spend your energy and where you might be leaving money on the table.
Then, look through your expenses. Is there anything you can cut back on? Is there room to start paying for that one app that would make your life easier?
Some business owners jump the gun a bit, paying for big-business services they might not need yet. Others have trouble getting off the ground because they don’t want to pay for the things they really do need to grow. A profit and loss statement lists it all out for you, so it’s a great place to start when you’re trying to evaluate your business operations.
Another great way to see the value of profit and loss statements is to generate them over different time periods. What did the statement look like last month? How about the month before? The more profit and statements you look at, the more comfortable you’ll get reading them and the more you’ll learn about your business.
Over time, those P\&L statements will be a huge help in watching your business grow. If you keep good records, you can compare your growth, sales, and profit from day one, monitoring pain points or bottlenecks and even forecasting future growth.
Want to spend less time on your financials and more time running your business? Quicken Business & Personal offers built-in [reports you can run automatically](https://www.quicken.com/products/business-personal/).
## Making your business work for you
Owning a business isn’t just a hobby — you pour your heart and soul into it because it’s your passion. When looking at the finances of your company, consider how you value your own time as well. In many instances, small business owners don’t pay themselves — especially in the first year or two of operation. If you need to make ends meet in your personal life while operating your own organization, your profit and loss statement can help you determine a reasonable salary for your efforts.
Need some extra cash to launch your business? Check out these [25+ ways to make quick money](https://www.quicken.com/blog/23-ways-to-make-quick-money-in-one-day).
## Are there any other financial reports I might need?
Along with profit and loss statements, balance sheets and cash flow statements can also help you get a solid picture of your business’s finances. While these additional financial reports are ultimately necessary, they’re tougher to put together on your own.
If you want to take a deeper dive into your company’s financials, [Quicken Business & Personal](https://www.quicken.com/products/business-personal/) can track your business income and expenses automatically and generate the reports you need with just a few clicks.
## Passion over profit?
It’s no secret that people start their own businesses because they’re passionate about their craft. Record producers, artists, chefs — these industries can be lucrative for some and a pay cut for others. As long as you can keep operating your business and enjoying it, that’s real freedom in and of itself.
If your business hits a rough patch, remember that Apple was plummeting in the mid-80s and Steve Jobs was ousted, only to be rehired a decade later to dominate the market. Bankruptcy loomed for Adidas in the early 90s — now, you won’t find a soccer pitch without Adidas gear on it anywhere on the globe.
By running your financial reports regularly and keeping a close eye on your operations, you’ll be in good shape to react quickly to market changes and take advantage of new opportunities as they come along.
See how Quicken Business & Personal cuts the admin time for your small business.
[Get started →](https://www.quicken.com/products/business-personal/) | ||||||||||||||||||
| ML Classification | |||||||||||||||||||
| ML Categories |
Raw JSON{
"/Finance": 961,
"/Finance/Accounting_and_Auditing": 587,
"/Finance/Accounting_and_Auditing/Bookkeeping": 464,
"/Business_and_Industrial": 276,
"/Business_and_Industrial/Small_Business": 188,
"/Business_and_Industrial/Small_Business/Business_Formation": 144
} | ||||||||||||||||||
| ML Page Types |
Raw JSON{
"/Article": 998,
"/Article/How_to": 935
} | ||||||||||||||||||
| ML Intent Types |
Raw JSON{
"Informational": 994
} | ||||||||||||||||||
| Content Metadata | |||||||||||||||||||
| Language | en-us | ||||||||||||||||||
| Author | null | ||||||||||||||||||
| Publish Time | not set | ||||||||||||||||||
| Original Publish Time | 2022-11-11 11:55:05 (3 years ago) | ||||||||||||||||||
| Republished | No | ||||||||||||||||||
| Word Count (Total) | 3,035 | ||||||||||||||||||
| Word Count (Content) | 1,736 | ||||||||||||||||||
| Links | |||||||||||||||||||
| External Links | 24 | ||||||||||||||||||
| Internal Links | 112 | ||||||||||||||||||
| Technical SEO | |||||||||||||||||||
| Meta Nofollow | No | ||||||||||||||||||
| Meta Noarchive | No | ||||||||||||||||||
| JS Rendered | Yes | ||||||||||||||||||
| Redirect Target | null | ||||||||||||||||||
| Performance | |||||||||||||||||||
| Download Time (ms) | 728 | ||||||||||||||||||
| TTFB (ms) | 494 | ||||||||||||||||||
| Download Size (bytes) | 142,994 | ||||||||||||||||||
| Shard | 128 (laksa) | ||||||||||||||||||
| Root Hash | 17217912096907709128 | ||||||||||||||||||
| Unparsed URL | com,quicken!www,/blog/how-to-make-a-profit-and-loss-statement/ s443 | ||||||||||||||||||