Small Business Help And Training

Profit And Loss Form

This page provides you a free profit and loss form with instructions for completing your profit and loss statement.

This form and instructions in this page relate specifically to an online micro internet business. (For a definition of a micro-business go to Micro Business Definition.) It is laid out to allow a micro-business owner to track multiple streams of income as individual profit centers. It should be included in your internet business plan. See Internet Business Planning.

The information below assumes that you know how to use a Profit and Loss Statement for an internet based business. If you are not completely familiar with how to use your profit and loss statement, go to Profit And Loss Statement

The information below is to be used in conjunction with the form that you get by clicking on Profit And Loss Form. Note that the form is a spreadsheet in .xls format . You will be asked if you want to open it. When you open it, a new browser window will open on your computer and you will have an .xls form that you can use to make your own projections. The line items are explained below.

If you do not open the form, you will be returned to this page.

For an internet business, you will have a master business P&L and a P&L for each website. The P&L for each website is commonly called a statistics page or stats page.

The form is to be used to monitor the performance of any one website and should be part of any website plan. The totals from each website P&L should be copied to a master business P&L. Put another way, a form is used as a statistics page that shows the income and expenses for each website. Then the "stats" are transferred to your master P&L so that you can see the totals for your business.


Here are the line items.

Total Net Sales -- this number is your estimate of the monthly sales that you will make.

This will come from your web site plan. Your web site plan will tell you how many visitors you expect to get and what your conversion rate should be. That should give you your number for total net sales. If you do not have a web site plan, you can get a copy of the web site planning guide at this link. Web Site Planning Guide

Note on the form that there are several lines under the "Income" title. If you are using the form for a single website, then you list the revenue from each source in the website. If you are using it as your master P&L, then you list the revenue from each website.

Cost Of Sales -- for products, this is the cost of the inventory items sold to your customers. If you are drop shipping, it is a cost to you for the product. This figure includes the cost of purchasing product, shipping, labor, packaging, services, and anything that it cost you to get the product on your shelf and shipped.

If you are selling as an affiliate for something like where you work on a percentage, your cost of sales is zero.

Gross Profit -- gross profit is your total net sales minus the cost of sales. On the form, this will auto calculate.

Expenses - The numbers for this section come from your business plan. As you have done your research in the past it should be just a matter of copying those numbers to the sheet.

If you are using this form for a website, include only those items that are specifically related to that website. By way of example, in the rent category, include the rent only on your master P&L and not on each website unless you have to pay extra rent so that you can use that website as part of your business. The same applies to all other expense items.

Salaries/Wages -- -base pay plus overtime. As a micro business owner, you will probably work alone in the beginning. Do not include anything you will take out of the business. What you can take out is at the bottom of the profit and loss statement.

Benefits -- paid vacations, sick leave, health insurance, unemployment insurance, Social Security taxes and any other benefits provided to your employees.

Legal/Accounting -- if you use an outside bookkeeper instead of an accountant, include that here. If you have an employee doing the bookkeeping and tax returns for you, include that in the salaries and wages section.

Professional Services -- this includes the cost of web programmers, and any other third-party consultant that you may hire to keep your business online.

Outsourcing Services -- content writers, article spinners, and costs of any other services that you outsource.

Advertising -- this number comes from you advertising and marketing plan for your web site.

Travel -- this includes the use of you automobiles if it is used in business, parking, tolls, and any other travel costs related to your business.

Office Supplies And Maintenance -- this includes all those supplies that you use in the office plus cleaning and anything else it takes to run that business

Postage And Shipping -- any costs related to shipping or sending mail.

Dues And Subscriptions -include here memberships and drop ship program costs, training services, e-book services, web directories.

Internet services -- your internet connection, the cost of domains, auto responders, and any other services that are related to keeping your web site online and providing customer service.

Utilities -- electric, gas, telephone, water, and so on.

Taxes -- include any taxes such as real estate taxes, personal property taxes, excise taxes, sales taxes and any other taxes related to your business.

Repairs And Maintenance -- include in this computer maintenance, painting, and any other repairs that you might think you should have to pay for.

Miscellaneous -- in this column you add everything else that is not categorized above. If you can't think of anything, add an extra 20% of the costs of everything above here. It's called the, “Oh! I forgot!” figure. There is going to be a lot that will come up that you forgot about. Add his twenty percent in the planning process. After your business is running you will be able to refine this column as you get actual figures.

Rent – the cost of your floor space.

Depreciation -- the amortization of capital assets. Your accountant will calculate this for you at tax time. But for now use 20% of the total amount of your equipment and programs as an estimate.

Insurance -- include fire, liability, and product insurance as well as product liability insurance where necessary. Also include workers compensation here.

Licenses/Permits -- this includes the cost of any license or permit it is necessary for you to register your business and/or operate your business.

Total Expenses – Self explanatory. On the form, this will auto calculate.

Net Profit Or Loss Before Taxes – this is the bottom line – before the Government gets to you. On the form, this will auto calculate.


Net Profit Or Loss After Taxes. - What you worked for. On the form, this will auto calculate.