Profit and Loss Statement Notes and Descriptions

The profit and loss statement can give you insight into how your business has done over a period of time. It's also
Category Quarter 1 Quarter 2 Quarter 3 Quarter 4 called an income statement, revenue statement or P&L.

Revenue Add up the total value for the period you chose. Revenue is the amount of money that a business earns during a specific period.
Sales Money made from selling products.
Services Money made from selling services.
Other revenue Money the business makes from other sources.
LESS: Returns and refunds Subtract the cost for returns or refunds. Use a negative number.
Total Net Revenue $0.00 $0.00 $0.00 The total money the business makes before expenses.

Cost of goods sold The direct material and labor costs associated with the products and services above.

GROSS PROFIT $0.00 $0.00 $0.00 Net revenue minus the cost of goods sold. This is also called net sales.

Operating Expenses Add up the total value for the period you chose. Operating expenses (OPEX) are the additional expenses that it takes to run a business.
Salaries, payroll and benefits Employees' wages, payroll taxes and benefits for labor that isn't directly related to producing goods.
Training Money spent on trainings or seminars for employees.
Contractors Money paid to contract workers.
Professional services Money paid to professional service providers, such as attorneys or accountants.
Office supplies Expenses for office supplies and equipment.
Repairs and maintenance Expenses for repairs or maintenance of equipment and buildings.
Advertising Cost of advertising and marketing campaigns.
Travel Business-related travel. Include the cost of transportation, accommodations and meals.
Telecom Phone and internet service.
Rent (buildings) Rent paid for the business's buildings.
Rent (other) Other rental expenses, such as for equipment or vehicles.
Utilities Utility bills, such as heat and water.
Insurance Total for all the business's insurance policies.
Licenses and permits Total you've paid for business licenses or permits.
Other expense 1 An expense that doesn't fit into one of the above categories.
Other expense 2 An expense that doesn't fit into one of the above categories.
Other expense 3 An expense that doesn't fit into one of the above categories.
Total Operating Expenses $0.00 $0.00 $0.00 $0.00 The total of the above operating expenses.

Also called EBIT, this is the gross profit minus the total operating expenses is the total profit that a business makes before
EARNINGS BEFORE INTEREST AND TAXES $0.00 $0.00 $0.00 $0.00 paying interest and income taxes.

Interest expenses Interest paid on loans or lines of credit.

EARNINGS BEFORE TAXES $0.00 $0.00 $0.00 $0.00 Also called EBT, this is the gross profit minus the total operating expenses and interest expenses.

Income taxes Total local, state and federal income taxes paid.
NET EARNINGS/NET INCOME $0.00 $0.00 $0.00 $0.00 The gross profit minus the total operating expenses, interest and taxes. This is the business's profit.