The spreadsheet will give you a gross income and net income summary that can be manually carried over to other accounting software (or given to your accountant) but won’t be able to automatically export to another system without a series of steps to get there.īefore we dive into the details of this template, let’s make sure we’re on the same page and cover a few accounting basics. Most accounting software programs will have a database as the backend for the data – allowing the data to be sorted and queried in almost unlimited formats (although, the software program usually limits the query options through it’s included, pre-programmed queries).Īlso, going with a simple accounting spreadsheet will hinder any potential for that data to be integrated with accounting systems (such as payroll taxes, self-employed taxes, estimated taxes, and income tax return software). The result of the single-file approach is that the spreadsheet data can only be exported through copy/paste functions or as a printout. The spreadsheet is a “flat” file versus a “relational” database. There are a couple of disadvantages to using Excel: limited export options and no accounting system integration. Now, you also need to realize that Excel isn’t the end-all solution. Also, if you already own the Microsoft Office suite (or need it for your business communication), then there is no extra expense to use an Excel template. No bouncing between multiple windows or understanding what software-specific buttons do. The rows and columns are on the screen in one window and you simply scroll to the location where you need to enter the data. Assuming you have a basic understanding of Excel, it’s very easy to enter data into a spreadsheet. The other goal, using your knowledge of an Income Statement, is to help you evaluate if this downloadable Independent Contractor Profit and Loss Statement template will help you as an independent contractor (or a self-employed business owner).Īs a small business owner, there are a couple of advantages to using an Excel template that you should consider: simplicity and inexpensiveness. One is to give you some information regarding a business Profit and Loss Statement (also called an Income Statement). I have a couple of goals in writing this article. But, during the initial stages of all my ventures, I usually began the process with a simple Excel spreadsheet. More recently, I prefer the ease and accessibility of an online solution. Early on, I used packaged software installed on a local PC (or network). Working as an independent technical contractor, I’ve used a variety of accounting solutions to manage my business income and expenses.
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