Profit & Loss Statement For Ecommerce Businesses
Download our free ecommerce P&L template that has been used in countless acquisitions over the past 4+ years.
100% Free To Download
No more manually calculating figures. We calculate everything for you. Just enter in the appropriate data and it spits out a fully flushed out P&L.
It’s common for a shopify store to do high numbers one month and a crash the month after. Our standard deviation shows you just how stable an ecommerce business really is. A standard deviation is a great metric to know if someone just had a bad month or if there is a real concern. Anything over a 1 coefficient of variation is abnormal. Too much variation mens the business is not stable.
Automatic Traffic Diversity Chart
Get a visual view of which sales channels are bringing in the most revenue.
What is a profit & loss statment?
A profit & loss statement is like the report card of a business. It tells the buyer a story about how the business has been trending & if there is any tell tell signs of an issue. A P&L is different than a balance sheet however. The main difference is that a balance sheet shows the debt & assets of a business where a P&L shows the revenue and expenses. If you want to be able to get funding you will need to know how to read a P&L very quickly.
Are there other ways to generate a P&L for my shopify store?
Yes, you can use a tool called order metrics. Order metrics allows you to automatically create a financial statement for your ecommerce business.
- Automated tracking
- Ability to add in shipping data
- Integrates with Facebook & Adwords
- Accurate shopify fees tracking
- Integrates with popular shipping apps like shipstation & shopify shipping
Note: please do not send individual screenshots of your order metric dashboard to your buyers. This is just lazy and doesn’t look professional. Use their export feature to make a legit profit and loss. Or you can simply transfer your order metrics data with our P&L template.
My revenue & expenses are tied to multiple businesses what do I do?
Unfortunately this is called co-mingling of funds. If your looking to sell your business for a considerable amount its suggested that you get an accountant that can sort through your records and put together a proper document. Also note that if you don’t have a separate LLC its going to be hard for the buyer to get funding. It’s also good to have tax returns ready for your shopify store.
Why are advertising expenses so high with dropshipping stores?
Most dropshippers rely on paid traffic to acquire customers mainly through Facebook & Google adwords. Most store owners look for a 2 to 1 ratio. This means if they can spend $1 to make $2 they are extremely happy. However in a lot of instances those numbers go way down until the entrepreneur closes down the store completely due to high costs. Not all dropshipping stores are created equal. There are some really great business owners who have built a long term asset.