A Profit and Loss Report can help you see the state of your income and expenses.
A Profit and Loss Report is set up as follows:
Income
– Cost of Goods Sold
—————————–
Gross Profit
– Expenses
—————————–
Net Income (Loss)
Let’s say you sell hairbows, and you brought in $4,000 last month. You paid $1,000 for hair clips and material, and $500 in website fees and other office expenses. Your Profit and Loss report would look like this:
$4,000
– $1,000
————
$3,000
– $500
————
$2,500
Would you like to learn more about the Profit and Loss report? You can buy D.I.Y. Bookkeeping on Amazon! Chapter 5 is completely devoted to explaining this report with examples!
Buy D.I.Y. Bookkeeping on Amazon
Blessings,
Valerie Johnston