P & L Statement
I have just opened (4weeks) new a Home Decor store- I am clueless with accounting- My banker is wanting a P & L statement for a loan I am applying for to help me in my new business.
I have square as my POS-
I have read as much as I am able to grasp on P & L statements and because funds are extremely low at this point I am trying to do this without paying for someone else to do it for me, but I pray that soon that will end and someone will be able to do all of my financial reports.
I’ve signed up for various free accounting software in hopes that it will be easy enough for me to do, but as of right now I’m still clueless.
Any of your help will be greatly appreciated.
Hi Crystal, congratulations on becoming a small business owner! Many small business owners don’t have a background in accounting/bookkeeping so you are not alone.You are doing the right thing by learning as much as you can about the profit and loss statement. You mentioned that you have tried various free accounting software programs but I was curious as to whether you have tried Wave Accounting? Wave is 100% free to use and it will allow you to keep track of all of your income and expenses. It is very easy to use and you can easily generate a profit and loss statement once you have entered all of your data.
I also recommend that you read our SMB Accounting & Tax guide. It breaks down a lot of the accounting lingo into much simpler language, provides you with how you should record your income and expenses and covers financial reports like the profit and loss statement.
Before you know it, you will get this bookkeeping thing down – just hang in there.
Crystalynn Shelton, CPA