Professional Services
Profit and loss statement for a professional services firm
A services business has few moving parts and one thing that matters: what came in from clients against what went out to people and tools. Because there is no inventory, a lender's attention goes straight to whether the owner is taking money out as payroll or as draws — and those are different lines.
Upload the statements your bank already sends you and we read every transaction, ask about the ones we cannot place, and build a Profit & Loss you can hand to whoever asked for it. Start without an account.
The categories a professional services firm gets
These are provisioned for you on day one — the same rows the product sorts your transactions into, with the suppliers it looks for.
- Subcontract LaborCost of the work
- Payments to subcontractors and freelancers who deliver client work: 1099 contractors, Upwork, Fiverr, white-label service providers.
- Continuing EducationRunning the business
- CE courses, certifications, conferences, and training to maintain professional licenses and skills (CPA, bar, PE, etc.).
- Dues & MembershipsRunning the business
- Professional association dues and memberships: state bar, CPA society, trade associations, chamber of commerce.
- TravelRunning the business
- Business travel costs: airfare, hotels, rental cars, rideshare (Uber, Lyft) for client work and conferences.
- Meals & EntertainmentRunning the business
- Business meals with clients or staff: restaurants, coffee meetings, catering for business meetings.
The deposits that are not income
This is where an owner-prepared P&L usually goes wrong. Money can land in the account without being a sale, and money can leave without being a cost — and a lender notices when it has been counted anyway.
- Loan ProceedsMoney you owe
- Deposits from new borrowing: loan funding, SBA disbursements, merchant cash advances, and line-of-credit draws. Not revenue.
- Owner ContributionOwner's money
- Owner's personal money put into the business: capital injections and owner-funded deposits, often round amounts. Not revenue.
- Internal TransferNot on the P&L
- Movement between the business's own accounts: transfers to or from its own checking or savings. Excluded from the P&L entirely.
- Owner DrawOwner's money
- Money the owner takes out for personal use: owner withdrawals, transfers to personal accounts, personal spending from the business account.
- Equipment PurchaseThings you own
- Purchase of durable equipment, machinery, or vehicles costing roughly $2,500 or more with multi-year useful life. A fixed asset, not an expense.
We ask about these in plain English rather than guessing — “was this $10,000 deposit sales, your own money, or a loan?” — and you see every answer before you pay.
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