A P&L statement — short for Profit and Loss statement, and also called an income statement — is a summary of the revenue your business earned, the costs it incurred, and the profit or loss that produced over a period. It always follows the same order: total revenue, less cost of goods sold, giving gross profit; less operating expenses such as rent, salaries, software and marketing, giving operating profit or EBITDA; and finally net profit after tax. Indian freelancers and small businesses usually need one for income tax filing, for a bank loan application, or for a CA to review the books. It is not the same as a balance sheet, which is a snapshot of what you own and owe at one moment, whereas a P&L covers a whole year. This generator builds the standard format, shows your margin, and exports it as a PDF you can attach to a loan or ITR application.
A P&L statement includes Revenue (Sales & Fees), Cost of Goods Sold (COGS), Gross Profit, Operating Expenses (Rent, Salaries, Software, Utilities, Marketing), Operating Profit (EBITDA), Tax provisions, and final Net Profit.
Yes, it computes standard accounting metrics required for income tax returns, loan applications, and investor pitches.
Gross Profit = Revenue − Cost of Goods Sold. Net Profit = Gross Profit − All Operating Expenses − Tax. Gross profit shows how profitable the core product is; net profit shows what actually remains.
A negative profit means expenses and/or COGS are higher than revenue. Check whether you have entered all revenue, or whether overheads like rent, salaries or software costs are too high for current sales.
No. GST collected is not your income — it is a liability payable to the government. Always record revenue as the taxable value excluding GST.
Earnings Before Interest, Tax, Depreciation and Amortization. It is the operating profit before financing and depreciation charges, commonly used by lenders and investors to assess operating performance.
For guidance on categorizing your income and expenses, email rautprajwal36@gmail.com with a snapshot of your numbers and we will help you structure them well.