Build a clean P&L for any period — list income and expenses, and net profit, loss, and margin calculate instantly. Print or save as PDF. Free and private.
The P&L answers the most basic business question — did this period make money? — but the detail is where the value is. Group expenses meaningfully (materials, vehicle, insurance, software, rent) rather than one "expenses" blob, because trends per category are what tell you where money leaks. Net margin (profit ÷ income, shown on the generated statement) is the number to track over time: a growing revenue with a shrinking margin means you're working more for less.
A P&L records profitability, not cash — invoiced income you haven't been paid for yet appears here but not in your bank account. That gap is why profitable businesses still run out of money; pair this statement with our Cash Flow Planner to see both pictures. For lodgment-ready figures, hand your P&L to an accountant — this builder is for management reporting, not formal financial statements.
A profit and loss statement (P&L) — also called an income statement — lists all income earned and all expenses incurred over a set period, ending in net profit or net loss. It's one of the core financial reports every business should review regularly, because it answers the most basic question in business: did this period make money, and how much?
Unlike a cash flow statement, a P&L counts income when it's earned and expenses when they're incurred — not when the cash actually moves. That's why a business can show a healthy net profit margin on its P&L while still being tight on cash, if a lot of that income is sitting in unpaid invoices.
| Profit & Loss Statement | Cash Flow Statement | |
|---|---|---|
| Measures | Income earned and expenses incurred | Cash actually moving in and out of the bank |
| Answers | "Is the business profitable?" | "Will I have enough cash to pay the bills?" |
| Unpaid invoices | Counted as income once earned | Excluded until the customer actually pays |
| Key output | Net profit / loss and net margin | Running bank balance by period |
Build both to see the complete picture — start the cash view with the Cash Flow Planner.
| Who | Common Use |
|---|---|
| 🏢 Small business owners | Track whether the business is actually profitable each period |
| 🔨 Sole traders & contractors | Prepare a simple income statement without accounting software |
| 📊 Bookkeepers & accountants | Give clients a quick management P&L between formal reporting periods |
| 🏦 Loan & finance applications | Show recent profitability alongside other supporting documents |
| 📈 Growing businesses | Compare net margin over time to catch cost creep early |
What period should a P&L cover?
Whatever question you're answering: monthly for running the business, quarterly to match BAS, and the July–June financial year for tax. Consistency matters more than the choice — same periods compare cleanly.
Should I enter amounts with or without GST?
If you're GST-registered, use ex-GST amounts — the GST you collect isn't income (it's the ATO's money passing through), and the GST you pay isn't an expense if you claim it back. Non-registered businesses use full amounts.
What's a good net margin?
It varies wildly by industry — trades often run 15–30%, retail far less, consulting more. The more useful comparison is your own margin over time: falling margin with steady revenue means costs are creeping.
What's the difference between profit and cash flow?
Profit counts income when earned and expenses when incurred; cash flow counts money when it actually moves. An unpaid invoice is profit but not cash — which is why you can be profitable and still miss payroll.
Is my financial data uploaded anywhere?
No. The statement is built entirely in your browser — nothing is transmitted or stored. Save the PDF before you close the page.
What's the difference between a P&L statement and an income statement?
None — "profit and loss statement" and "income statement" are two names for the same report: income minus expenses over a set period, ending in net profit or loss. Small businesses tend to say P&L; formal accounting reports more often say income statement.
How do I calculate net profit margin?
Net profit margin is net profit divided by total income, shown as a percentage. This builder calculates it automatically on the generated statement once your income and expense lines are entered — no separate formula needed.
Can I use this instead of a P&L template in Excel?
For management reporting, yes — it gives you the same structure (income, expenses, net profit, margin) without setting up formulas yourself. If your accountant needs a specific format for lodgment or formal financial statements, follow their template instead.