smallbusiness.co.uk: Helping your business think big

Email a Friend

Profit and loss template
Use our P&L template for accounts

Use this blank template to build your own profit and loss account.

A profit and loss account template is important whether you are running a business or in the process of setting one up. If the latter, as a part of P&L forecasting, it forms a required part of a business plan (see our article What should be in your business plan). 

A profit and loss sheet shows business performance over a specific period of time, recording incomings and outgoings and sales income generated, including estimates of work in progress but not yet invoiced.

As part of your Annual Accounting

A P&L statement is usually prepared annually and shows revenues and costs and how much profit has been made over the period. It should form part of your overall bookkeeping set of documents - along with a Balance Sheet and Cash Flow Forecast.

For limited companies, and sole traders earning over £50,000 a year, a Profit and Loss Statement is required for HMRC.

As part of a Business Plan

The financial analysis section within a business plan should be about three pages - with data in an optional appendix. The first parts should consist of: i   - Summary of forecasts.
ii  - Monthly profit and loss forecast for two years.
iii - Profit forecast for further three years.
iv - Monthly cash flow forecast for two years.
v  - Cash flow forecast for further three years (optional).

Use the blank template's below to build your own profit and loss account.

The templates are done to be in line with HMRC reporting requirements for self-employed professionals. The numbers are for illustration purposes only and completely random.

...........................................................................................................................................................

Click here to download the profit and loss pdf template for companies with under £77,000 turnover.

Click here to download the profit and loss pdf template for companies with over £77,000 turnover.

...........................................................................................................................................................

Sales:

All income from sales should be added for the period the P&L is being prepared for whether or not your have received payment. Sales with no received payment should be added to the debtors account in your balance sheet.

Cost of sales:

Includes any direct costs involved in making and selling the product purchased, including the wages of  those involved in making the product and purchases made from suppliers for goods or raw materials used in the accounting period.

Overheads:

Includes general expenses and all other costs you have been invoiced for during the period, such as: rent, rates, professional fees, te vehicle costs, national insurance and pensions, utlilities etc. Items invoiced for but not yet paid are added to your creditors account on your balance sheet.

Depreciation:

It is a judgement call on how long a period fixed assets should be depreciated over but be consistent in your application of it.

 

See also: Balance sheet template

Related topics: Accounting Cash flow, Profit and loss

Previous article

Balance sheet template

Next article

Getting paid by credit and debit card

Post a comment

5 comments

Jonathan Sumner

The article has been updated with a new profit and loss pdf template for companies with under £77,000 and further profit and loss pdf template for companies with over £77,000 turnover. I hope this helps.

Janet Horne

Me neither !

Kay Bowman

Where is the template please? I can't see it either. Tried different browsers but no good.

J R

i can't even see the download link on this page.

John Jones

The template is just what I needed for my small business. However, PDF format is not the most effective tool for this business process - where is, or where can i find your template in Excel??????????

Related

Comment & opinion | Accounts & tax

Find an accountant
Purchase orders explained

Comment & opinion | Accounts & tax

Purchase orders explained

Expert view | Accounts & tax

Offsetting a loss against future profits

Expert view | Accounts & tax

Accounts packages

Small Business Offers

More from Small Business

Starting a Business
How to proceed in the event of an employee being arrested 

How to proceed in the event of an employee being arrested 

Amy Paxton, senior employment consultant at Croner, explores the course of action to take when...  

Running a Business
The entrepreneur perspective on getting to 50 employees 

The entrepreneur perspective on getting to 50 employees 

Richard Healy discusses how to navigate the road to acquiring the right staff for your...  

News
Consumers happy to share personal data with brands

Consumers happy to share personal data with brands

UK consumers are 'surprisingly relaxed' about sharing their data with businesses, research finds. ...  

Blog
Small businesses find the going tough in modern economy

Small businesses find the going tough in modern economy

More than three quarters of SME leaders are not confident in the steady recovery of...