Free Profit and Loss Statement Template (Excel Download)
5 min readA profit and loss statement (P and L) shows the income, expenses and overall profit of your business over a set period — usually 12 months. It helps you understand how much money you’ve made (or lost), making it easier to plan for the future. If you run a limited company, preparing a P and L is essential to meet HMRC reporting requirements. For sole traders, it’s not compulsory — but it’s still a valuable tool for keeping accurate records and managing your tax payments.
A profit and loss statement is a key document that limited companies need to produce to satisfy HMRC requirements.
If you're a sole trader, you are not obliged to complete one, or any formal accounts for tax purposes, however, you will need to 'keep adequate records to complete your self-assessment fully and accurately' and a profit and loss statement is vital for this and will give the sole trader a better understanding so that they can plan their tax payments for the future.
The profit and loss statement illustrates revenues and costs as well as how much profit has been made by the business over the period it has been prepared for (usually the last 12 months)
Download the Profit and Loss Statement Template here
Anyone can prepare the statement although many business owners choose an accountant to ensure all financials are kept in order. The profit and loss statement is part of a general bookkeeping set made up also of the company balance sheet and cash flow forecast.
General headings include:
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Total income
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Cost of sales
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Gross and net profit
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Business expenses
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Profit before tax
We've put together the below useful template for you to download and use:
Business Advisor recommendation:
Download a free Cash Flow Forecast Template
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Frequently Asked Questions:
What is a profit and loss statement?
It’s a simple financial report showing your income, expenses and overall profit over a set period.
Do I need to complete one if I’m a sole trader?
It’s not mandatory, but it helps you manage your business finances and plan your tax.
Is the template free to use?
Yes! The Excel file is completely free to download and edit.
Can I complete it myself, or do I need an accountant?
Many business owners complete it themselves, especially with our simple template — but you can also ask an accountant for help.
Ed Jordan
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