A profit and loss (P&L) statement is a report that shows how much money your business has made and spent over a certain period.
Lenders use this statement to understand how your business is doing financially before your taxes for the year are filed. It gives them a clear picture of your business's current performance.
A year-to-date P&L should include:
Revenue: How much money your business has made from January to today.
Cost of goods sold (COGS): What it costs to make or buy your products or services.
Business expenses: All your business-related expenses (not personal costs).
Net income: The profit left after subtracting all your expenses.
The P&L statement needs to be dated within the last 30 days (e.g., it must be from January 1st to May 14th to be used by June 14th).
If you use software like QuickBooks, you can easily download it. If not, you can get help from your accountant or use our downloadable template to create it.