Link title in the Profit and Loss Statement

Aug 6th, 2022
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How to link title in the Profit and Loss Statement

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hello there this is the bookkeeping master on YouTube welcome to this video I want to show you how to create a profit and loss statement using Microsoft Excel or a similar package this is just an introduction to the video and there will be a link to the rights and also in the description that will take you to a series of videos that I recently did its all for free its all on YouTube the series of videos shows you how to create a number of management accounts using Excel and the start of videos or the first reports are show you how to create our profit and loss statements and balance sheets so if you click on the link to the right or in the description then youll be taken to that video thank you in advance for watching please like please subscribe and please check out my website for more videos thank you

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The PL will include three key componentsrevenue, expenses, and income. There are three key steps to making a profit and loss statement.
The top section of the profit and loss account, up to and including the gross profit, is referred to as the trading account. This is because it shows only the direct trading activities of the business. Within this, sits the sales figure and costs of sales.
Profit Loss Account summarizes business income and expenses during a period, essential for assessing profitability and decision-making. Important components include revenue, COGS, operating expenses, operating profit, net income.
The income statement is connected to the balance sheet through retained earnings in shareholders equity: Income (revenues, etc.) increases retained earnings: reflected as a credit to retained earnings. Expenses (COGS, SGA, etc.)
A profit and loss account will include your credits (which includes turnover and other income) and deduct your debits (which includes allowances, cost of sales and overheads).
A profit and loss statement includes a businesss total revenue, expenses, gains, and losses, arriving at net income for a specific accounting period. Management analyzes a PL to determine how to increase profitability by increasing revenue, lowering costs or both.
State your company name on the first line, then Profit and Loss or Income Statement on the second line and finally the time period it covers (for instance: For the Year Ending December 2010).
The major links in the three financial statements are: Net income from the IS links to the BS (retained earnings) and the CFS operating section. Property, plant and equipment in the BS creates depreciation in the IS and the CFS operating section, and also creates capital expenditure in the CFS investing section.

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