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A profit and loss (P&L) statement is one of the three types of financial statements prepared by companies. The other two are the balance sheet and the cash flow statement. The purpose of the P&L statement is to show a company's revenues and expenditures over a specified period of time, usually over one fiscal year.

P&L statements can be done for any given period of time, but it's helpful to review your P&L monthly or at least quarterly. How to Create a P&L Statement. ... Step 1 ? Track Your Revenue. ... Step 2 ? Determine the Cost of Sales. ... Step 3 ? Figure Out Your Gross Profit. ... Step 4 ? Add Up Your Overhead.

First, you can pull together your own statement and create the document using a spreadsheet. Tools like Excel and Google Sheets have templates. We've created a simple profit and loss statement template for you to use here. Or, you can use small business accounting software like Freshbooks.

A certified profit and loss statement is a company's summary of sales, expenses, and income or loss over a specific period that has been audited by an independent certified public accountant. The auditor typically examines and certifies the accuracy, fairness, and compliance with the standard of the statement.

The primary functions of a CPA who performs an audit on a profit-&-loss statement are to generate an independent opinion of the income and expense items reported and to express his opinion in a written statement. CPAs who perform audits are third-party reviewers of profit and loss information.

A P&L statement shows a company's revenues and expenses related to running the business, such as rent, cost of goods sold, freight, and payroll. Each entry on a P&L statement provides insight into how much money a company made and spent.

You need to hire a certified public accountant to provide a certified income statement. The CPA certifies financial statements by going over them, comparing them to reality, and certifying that the depiction of your finances is accurate.