A profit and loss statement is needed when filing as self-employed and/or 1099-MISC

Step 1

First, you need to total all your income for the year. If you don’t have a 1099-MISC form, you can go through your bank statements and add up the monthly deposits. If bank statements are unavailable, refer to your business journal and/or invoices.

• Income from sales: This includes all revenue from business sales.
• Income from loans: This includes funds received from SBA, banks, etc.
• Income from owner: This includes personal funds deposited into the business account by the owner.

Step 2

Next, sum up all your expenses, such as:

• Auto payments: 12 x $___
• Auto insurance: 12 x $___
• Cell phone: 12 x $___
• Rent: 12 x $___
• Utilities: 12 x $___
• Toll fees (SunPass): 12 x $___
• Fuel: 52 x $___
• Repairs: $___
• New computer purchase: $___
• Permits and licenses: $___
• Other expenses: $___

Note: Expenses must be ordinary and necessary for the business.

Step 3

List your total income at the top of the statement and all year-to-date expenses below it. Subtract the total expenses from the total income to determine your profit or loss for the year.