How to Create a Profit and Loss Statement: Step-by-Step Guide
- Revenue: How much money your business made
- COGS (Cost of Goods Sold): The direct costs to produce and ship products
- Operating Expenses: Ongoing business costs like marketing, tools, salaries
- Net Profit or Loss: What’s left after all expenses
- Sales revenue: From your Shopify dashboard or other platforms
- COGS: Product costs, shipping, packaging
- Marketing spend: Facebook, TikTok, Google Ads, influencer payouts
- Operating expenses: Subscriptions (Shopify apps, tools), salaries, freelancers
- Other income or expenses: Refunds, chargebacks, or interest earned
- Product returns and refunds
- Payment gateway fees (Shopify, PayPal, Stripe, etc.)
- Canceled orders or chargebacks
- Product sourcing or wholesale cost
- Fulfillment and shipping expenses
- Packaging materials (branded boxes, fillers, inserts)
- Any customs duties or import taxes
- Advertising spend (Meta, TikTok, Google Ads, influencers)
- Shopify and third-party app subscriptions
- Staff costs (VAs, freelancers, customer service teams)
- Email marketing tools, CRM, analytics software
- Office supplies, phone bills, or any home-office allocations
- Bank interest or income from side services
- Business loan repayments or interest charges
- Currency conversion losses/gains
- Government grants or tax credits
Senior Content Executive at TrueProfit & SEO/Content Specialist
Tracy is a senior content executive at TrueProfit – specializing in helping eCommerce businesses scale profitably through content. She has over 4 years of experience in eCommerce and digital marketing editorial writing. She develops high-impact content that helps thousands of Shopify merchants make data-driven, profit-focused decisions.
Tracy is a senior content executive at TrueProfit – specializing in helping eCommerce businesses scale profitably through content. She has over 4 years of experience in eCommerce and digital marketing editorial writing. She develops high-impact content that helps thousands of Shopify merchants make data-driven, profit-focused decisions.
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