This is a financial statement that estimates costs and expenses in a specific time period. It summarizes the revenue as well. The Profit and loss statement enables a company to device ways of reducing its cost and increasing its revenue. The statement comprises of a general form which begins with the space for entering your company’s revenue, it includes operating expenses, interest expense, cost of goods and other tax expense.
The net income appears at the bottom line. Apart from containing all the important details about your company’s expenses it enables you to keep a record of your finances properly. Balance sheet, cash flow statements and income statement are the vital statements of any company and you need to analyze them together for keeping a check on your expense and making your business successful. Your company can not prosper in the true sense if you do not have all these legal documents formatted for keeping in your company’s records.
Below you can find the preview and download link of a free profit and loss statement template,