How to Generate a Profit and Loss Statement for a Bank Loan Modification

How to Generate a Profit and Loss Statement for a Bank Loan Modification
Lenders require profit and loss statements to calculate self-employment income.

Step 1

Title the statement with your business name, followed by "Profit and Loss Statement" in the sheet's header. Typically, the name should be consistent with that which was used for the business bank account or business license, as the lender will reference these items as well.

Step 2

Indicate the time period for the profit and loss statement. When generating the most recent quarterly (three-month period) statement, indicate the beginning and ending date for the quarter. If generating a monthly profit and loss, list the month for which each statement applies, as the lender will likely require three of them. Put this information directly under the profit-and-loss header.

Step 3

Create a row itemizing all revenues, income, sales or commissions generated by the business under the heading of Gross Income or Revenues. The name of the type of income is listed to the left of the sheet, while the amount in dollars is listed directly to the right of it at the other end of the sheet.

Step 4

Calculate the total income generated and put it at the bottom of the row, or section, next to the words Total Gross Income, Total Revenue or Total Sales.

Step 5

Create an itemized list of the business costs, or Cost of Sales, in a separate row below the Income section. Acceptable costs are those that were paid to obtain any goods sold. The business may not have such costs, in which case this row does not apply.

Step 6

Calculate the total of the costs and put them at the bottom of the row with Costs of Sales on the left and the amount to the far right.

Step 7

Itemize business expenses in a third section, or row. Business-related expenses include advertising, marketing, fees, transportation, professional services, rent, utilities, supplies, labor, employee benefits and other items paid for exclusively for business purposes.

Step 8

Calculate the total business expenses and put them at the bottom of the section with Total Expenses on the far left and the dollar amount to the far right.

Step 9

Deduct the total amount of costs and expenses from the total income. Put this difference at the bottom of the profit and loss statement next to the term Net Profit or Net Loss. If the calculation is a positive number, it is a profit; but if it is a negative number, it is a loss.