Profit & Loss template (services)

This profit & loss template for services tells you how much money is actually leaving your business and how much is actually coming in. This means that it can show you where you need to take action to cut costs and increase profit. Instead of just relying on your feelings about the business, you will have business data to guide your decisions. This will help you run your business in a more professional way.

“I know my business is profitable, but at the end of the day, I still make a loss. How is this possible?”

There are various reasons why this may be happening:

1. there may be some costs or expenses that you are not including in your calculations. I recommend that you keep track of your expenses and costs for at least 1 month (1 year is best!) to find out if you have any hidden costs.
2. you may be taking too money from the business for personal or family use. The total amount you take from the business for personal use should always be less than your total net profit. If you are taking more money out than your net profit, your business cannot survive. If that is the case, find a way to reduce your personal or family expenses, or look for ways to increase your sales & profit.
3. your selling price is too low. This may be because you did not take into account all your direct expenses when you were calculating your price. If so, you will need to adjust your price now that you know your expenses.
4. somebody is stealing from you. The best way to check this is to keep good records, assign separate responsibilities to staff, and carry out regular checks.

This Profit & Loss template for services will help you determine how much profit (or loss) you are making after taking into account all the costs and expenses in your business.

Note: a separate Profit & Loss template is available for products and goods (manufacturing, retail etc).