📊 Statement

Profit & Loss Statement: The Complete Guide

Know your profitability at a glance. Everything you need to know — plus a free tool to do it instantly.

What is p&l?

The Profit & Loss (P&L) statement — also called an income statement — is the most important financial report for any business. It shows whether your business is profitable over a given period by comparing total revenues against all costs and expenses. Accountdesq's P&L tool supports four sections (Revenue, COGS, OpEx, Other), per-line tax rates, EBIT calculation, corporate income tax, and exports a fully formatted PDF and Excel workbook.

How it works

Configure your company name, period, and currency. Add revenue streams and expense rows across four sections. Toggle per-line tax rates (e.g. VAT at 20% on product sales, GST at 10% on services). Set your corporate income tax rate. The tool calculates Gross Profit, EBIT, EBT, and Net Profit in real time. Export a branded PDF or structured Excel file with all workings.

Why it matters

Without a P&L, you're flying blind. A monthly P&L reveals which revenue streams are growing, which costs are creeping up, and whether you're actually profitable after tax.

Common mistakes

Mixing COGS and OpEx — keep direct production costs separate from overhead
Forgetting depreciation as an expense — it reduces taxable income
Not reconciling P&L with bank statements — profit isn't cash
Preparing P&L only annually — monthly is essential for management decisions

Best practices

Review P&L monthly and compare to the same period last year
Track gross margin % and net margin % as your key KPIs
Include depreciation and amortisation in OpEx
Separate one-off items from recurring revenue and costs

Ready to put this into practice?

Use the free Profit & Loss Statement to create a real p&l in under a minute — no signup, exports to PDF and Excel.

Open P&L tool