“Show Me the Money: How to Fill Out Your Profit & Loss Like a Pro”
If you are self-employed or work for Uber, Lyft, or other gig platforms, we’ll need your business income and expenses (Profit & Loss) for the six months before your case is filed. Here’s what you’ll need to create your Profit and Loss statement.
How to Complete a Profit & Loss (P&L) Statement
For Small Business Owners and Self-Employed Individuals
If you are self-employed or run a small business, you are required to provide a Profit & Loss (P&L) Statement showing your income and expenses for the six months prior to filing your case. This helps us determine your actual monthly income.
This guide will walk you through what a P&L statement is, how to complete it, and what it should look like.
✅ Step 1: Choose Your Timeframe
You’ll need to complete a monthly P&L statement for the six full months before your case is filed.
- Example: If filing in September 2025, your P&L must cover March through August 2025.
✅ Step 2: Calculate Gross Income
This is your total business revenue before any expenses. Include all business income received during each month:
- Payments from clients or customers
- Tips, bonuses, commissions
- Earnings through payment apps (Venmo, PayPal, Zelle, etc.)
- Transfers from platforms like Etsy, Shopify, or Square
Use income reports, bank statements, or app dashboards to total each month’s gross income.
✅ Step 3: List Monthly Business Expenses
Business expenses are the costs you pay to operate your business. Only include business-related expenses.
Common examples:
- Gas or mileage (use actual costs or IRS mileage rate, not both)
- Supplies/materials
- Business use of cell phone or internet
- Business insurance
- Tools/equipment
- Website hosting or advertising
- Repairs or maintenance
- Software or subscriptions
- Office rent or business-related utilities
- Subcontractor or employee payments
Keep receipts, logs, or statements to back up your numbers if needed.
✅ Step 4: Calculate Net Income
Net Income is your profit after expenses. Gross Income – Total Expenses = Net Income
You’ll do this calculation for each of the six months individually.
✅ Step 5: Prepare Your P&L Statement
Here’s what your finished statement should look like—broken down monthly, with totals at the bottom.
📄 Sample Profit & Loss Statement (Detailed – 6 Months)
Client Name: John Smith Business Name: Smith Contracting Services Business Type: Self-Employed / Sole Proprietor Reporting Period: February 1, 2025 – July 31, 2025
| Month | Gross Income | Expenses | Total Expenses | Net Income |
|---|---|---|---|---|
| Feb | $3,200 | Gas: $300, Supplies: $250, Phone: $75, Insurance: $150, Advertising: $100, Repairs: $125 | $1,000 | $2,200 |
| Mar | $3,500 | Gas: $350, Supplies: $275, Phone: $75, Insurance: $150, Advertising: $150, Repairs: $200 | $1,200 | $2,300 |
| Apr | $2,900 | Gas: $275, Supplies: $200, Phone: $75, Insurance: $150, Repairs: $100, Misc.: $100 | $900 | $2,000 |
| May | $3,100 | Gas: $325, Supplies: $250, Phone: $75, Insurance: $150, Equipment Purchase: $250 | $1,050 | $2,050 |
| Jun | $3,000 | Gas: $300, Supplies: $225, Phone: $75, Insurance: $150, Website/Software: $100 | $850 | $2,150 |
| Jul | $3,400 | Gas: $375, Supplies: $250, Phone: $75, Insurance: $150, Marketing: $150, Equipment Repair: $200 | $1,200 | $2,200 |
| Totals | $19,100 | $6,200 | $12,900 |
📌 Additional Tips:
- You can use our P&L template, a spreadsheet, or even a handwritten version—just be sure it includes each month with income, expenses, and net income clearly shown.
- Estimates are acceptable if you don’t have exact numbers, but they should be based on your actual business habits.
- Save supporting documentation in case it’s requested later: tax returns, 1099s, income reports, receipts, etc.
- If you use your car for business, choose either actual expenses or the standard IRS mileage rate—not both.
⚠️ Submitting Your P&L
Before submitting:
- Make sure your P&L covers 6 full months
- Double-check the math is correct
- Include clear expense descriptions
- Use realistic and honest numbers
Here is the link to the P and L spreadsheet that we would like you to use
https://millermillerlaw.com/forms/
“Quick Video Guide: Master Your P&L in Minutes!”