Q:

How do you use a profit loss template form?

A:

Quick Answer

To use a profit-and loss template form, input all of the business sales and product costs to determine gross profits, and then subtract all of the expenses to determine the net profit for the period, states Dummies.com. Input the same information for previous periods to compare budgeted expenses and changes in sales.

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Full Answer

A profit-and-loss statement, also known as an income statement, is a worksheet that businesses use to track all of the received revenues and expenses to determine the company's net profit, states Dummies.com. Profit-and-loss template worksheets are forms that track the total sales revenue as well as all expenses including the cost of sales, operating expenses, taxes and other expenses. To use a profit-and-loss template, follow the steps below.

  1. Choose a template
  2. Create a template or utilize an already created form, such as the one offered through Microsoft Excel. Excel templates allow bookkeepers to track revenues and expenses from period to period.

  3. Input revenues
  4. Input the total amount of sales for the current period along with the costs of the products to determine the gross profit.

  5. Input expenses
  6. Input all operating expenses, including sales and marketing, research and development, general and administration, taxes and all other expenses. The Excel template calculates all subtotals as well as the net profit and changes from past periods.

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