Profit and Loss different sections "Excel P&L template"

[Ty]

I am clueless.

I'm trying to do a P&L just for myself as a contractor. I know the
simple things about myself. My salary and my expenses such as laptop,
gas, cell phone...etc... I don't understand what to place in the
different sections on a P&L spreadsheet. I found plenty of templates
plus the Microsoft template but I'm clueless on what should go in what
sections.

Total Revenue(Sales)?
Total Cost of Sales?
Gross Profit?
Net Profit?
Sales Revenue?
Income taxes? for the state of Texas?

Where do I place my Salary?

Do anyone have some spreadsheets with examples?

Thanks in advance..

 

[trip_to_tokyo]

I am clueless.

I'm trying to do a P&L just for myself as a contractor.  I know the
simple things about myself.  My salary and my expenses such as laptop,
gas, cell phone...etc... I don't understand what to place in the
different sections on a P&L spreadsheet. I found plenty of templates
plus the Microsoft template but I'm clueless on what should go in what
sections.

Total Revenue(Sales)?
Total Cost of Sales?
Gross Profit?
Net Profit?
Sales Revenue?
Income taxes? for the state of Texas?

Where do I place my Salary?

Do anyone have some spreadsheets with examples?

Thanks in advance..

TOTAL REVENUE

Your total revenue would be what you charge at: so say you did 7 hours
at USD 100 per hour the total revenue for that day would be USD 700.

TOTAL COST OF SALES

This would be things like the cost of your mobile (cell) phone each
month / stationery costs / things that go out each month including
your salary go in here.

GROSS PROFIT

In terms of the above 2 categories say you had a TOTAL REVENUE for the
year at USD 200 000 and you have TOTAL COST OF SALES at USD 100 000
then your GROSS PROFIT would be USD 100 000.

SALES REVENUE

For you this is probably the same as TOTAL REVENUE.

TAXES

I think that these come out of your GROSS PROFIT (I think - not 100%
on this).

So in terms of the above numbers your GROSS PROFIT was USD 100 K,
let's say the taxes are USD 50 K this would then leave you with a NET
PROFIT of USD 50 K.

You are probably best off constructing your own Workbook as things
seem to be fairly straightfoward.

If my comments have helped please rate my posting (if possible).

Thanks.

 

[Ty]

TOTAL REVENUE

Your total revenue would be what you charge at: so say you did 7 hours
at USD 100 per hour the total revenue for that day would be USD 700.

TOTAL COST OF SALES

This would be things like the cost of your mobile (cell) phone each
month / stationery costs / things that go out each month including
your salary go in here.

GROSS PROFIT

In terms of the above 2 categories say you had a TOTAL REVENUE for the
year at USD 200 000 and you have TOTAL COST OF SALES at USD 100 000
then your GROSS PROFIT would be USD 100 000.

SALES REVENUE

For you this is probably the same as TOTAL REVENUE.

TAXES

I think that these come out of your GROSS PROFIT (I think - not 100%
on this).

So in terms of the above numbers your GROSS PROFIT was USD 100 K,
let's say the taxes are USD 50 K this would then leave you with a NET
PROFIT of USD 50 K.

You are probably best off constructing your own Workbook as things
seem to be fairly straightfoward.

If my comments have helped please rate my posting (if possible).

Thanks.- Hide quoted text -

- Show quoted text -

I finished it. It looks good. Thanks for the help. I did not really
know what to do about TAXES. I will have to pay the IRS at the end of
the year. I'm being paid straight pay without any deductions for IRS/
Taxes. I did some more research by using google. I found a sheet
with just a row right above Net called "Provision for income tax".
Interesting. If any one have any suggestions for Taxes, please let me
know.

I'm doing it by Month and not hourly but the example was excellent
enough for me to figure it out.

What can I do about taxes?

 

[joeu2004]

I'm trying to do a P&L just for myself as a contractor. [....]
I don't understand what to place in the different sections on a
P&L spreadsheet. I found plenty of templates plus the Microsoft
template but I'm clueless on what should go in what sections.

What can I do about taxes?

The handling of taxes is very specific to your jurisdiction. You
mentioned Texas. I do not know about Texas business taxes. And I
might not have found the same template that you are using.

But generally in the US, business income tax is based on Income From
Operations -- Gross Profit less Operating Expenses -- plus any
additional business income unrelated to operations.

This might be figured using a flat-rate or marginal-rate schedule.
The latter can be complicated to compute. For that reason, the
template I found assumes that you simply compute the amount and enter
it manually.

Other taxes might also apply. For example, in the US, payroll taxes
refer to federal withheld income tax and Social Security taxes based
on employee payroll as well as perhaps state and local payroll-related
taxes (none in Texas, as I recall). Property and sales taxes refer to
federal and state taxes based on non-operating business expenses such
as real estate and capital equipment.

Exactly how much of all this does or does not apply to you as a
"contractor" depends on the nature of your business.

If you have a basic accounting understanding as it applies to your
business and you simply want help with Excel formulas, provide some
specifics (with concrete numbers), and we can help with the formulas.

Otherwise, it would behoove you to acquire the basic accounting
understanding through some other means. Starting with Excel templates
will almost certainly lead to misleading, if not incorrect results.
Your state (or country) might have services for learning the basics;
contact your taxing authority. Alternatively, local colleges and
school districts often offer such classes targeted to the small
business owner; in the US, the local Small Business Administration
offices might provide pointers to such services.