How to create profit and loss statement
**Profit and loss needed when you are filing self-employed business and/or 1099-misc**
Step 1
You must first add up all income for the year (if no 1099-misc is available). Example is to go through bank statements and add up each month deposits. If you do not have bank statements, please then refer to your business journal and/or invoices.
- Income from sales (this is income from business sales)
- Income from loans (this is income from SBA, Bank, etc...)
- Income from owner (this is income business owner has deposited from his or her personal bank account)
Step 2
Add up all your expenses such as:
auto payments 12 x $
auto insurance 12 x $
cell phone 12 x $
rent 12 x $
utilities 12 x $
sunpass 12 x $
fuel 52 x $
repairs $
new computer purchase$
permits and license $
etc....
***Please remember expense must be ordinary or necessary for the business
You can complete profit and loss statement online via pdf filler link: CLICK HERE
Step 3
Income should be on top with all year to date expenses below. Subtract the expense from income on top to give you your profit/loss for the year.
Once completed it should look like Profit and Loss example I have provided.