How to Create a Profit and Loss Statement in Google Sheets

Published: December 8, 2023 - 3 min read

Julian Alvarado

Creating a profit and loss statement in Google Sheets is more than a financial chore; it’s a strategic tool for business owners to track their financial performance.

It helps companies lay out income, expenses, and profit or loss over a specific period. Understanding the nuances of a profit and loss statement empowers you to make informed decisions for sustainable growth.

In this tutorial, we’ll navigate through the steps to craft a comprehensive profit and loss statement tailored for business operations teams in B2B SaaS companies.

Understanding Profit and Loss Statement

A Profit and Loss (P&L) statement, also known as an Income Statement, is a financial report that summarizes a company’s revenues, expenses, and profits or losses over a specific period. It helps businesses track their performance and make informed decisions.

Importance of Profit and Loss Statement

A well-organized P&L statement is essential for various reasons:

  • Financial management: It allows business owners to monitor their company’s finances and identify areas where they can cut costs or increase revenue.
  • Decision making: P&L statements provide valuable insights for making critical decisions regarding expansions, investments, and budget allocation.
  • Tax reporting: Companies need a comprehensive P&L statement for accurately filing taxes and ensuring compliance with legal requirements.
  • Stakeholder communication: Investors, lenders, and other stakeholders rely on P&L statements to understand the financial health of a business.

Key Elements of a Profit and Loss Statement

A standard P&L statement includes:

  • Revenues: All income from sales, services, or investments.
  • Expenses: Costs incurred, split into:
    • Direct Costs (COGS): Directly linked to product/service production.
    • Indirect Costs: General business expenses like rent and marketing.
  • Net Income: The final profit or loss, calculated as Total Revenues – Total Expenses.
Example table showing key elements of a profit and loss statement in Google Sheets.

Creating a Profit and Loss Statement in Google Sheets

Setting Up Your Google Sheets

  • Open a new Google Sheet or use a template.
  • Input Basic Information: Business name, address, and the statement period at the top.
  • Create Income and Expenses Sections: Customize categories relevant to your business.
Creating a Profit and Loss Statement in Google Sheets

Inputting Income and Expenses

  • In the Income section, list all revenue sources. Use separate rows for clarity.
  • In the Expenses section, detail all business costs.
 Detailed income and expenses sections in a Google Sheets profit and loss statement.

Calculating Net Profit or Loss

Calculating the net profit or loss is an essential part of creating a profit and loss statement. Subtract the total expenses from the total income to determine your company’s net profit or loss.

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In Google Sheets, use formulas to calculate the totals for both sections and the net profit or loss. In this example:

  • Total Income: =SUM(C2:C3)
  • Total Expenses: =SUM(C5:C6)
  • Net Profit or Loss: =C4 – C7
Calculating net profit or loss in a Google Sheets profit and loss statement.


By mastering the creation of a profit and loss statement in Google Sheets, you can make well-informed financial decisions for your business.

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Julian Alvarado Content Marketing
Julian is a dynamic B2B marketer with 8+ years of experience creating full-funnel marketing journeys, leveraging an analytical background in biological sciences to examine customer needs.
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