Built for coffee shops specifically — our coffee shop template allows you to build a model that is built around the number of customer tickets per month and the average customer spend per order. It allows you to add both food and drink options as well as merchandise sales. Profit and loss template is obtainable here for free and can be used to access the financial position of a business, company or organization in mentioned period of time. Profit and loss statement is one of the fundamental financial statements and lists down overall sales and expenses of the business or company.

A profit and loss statement is an important way of working out not only how your business has been performing in the past, but for predicting how it will perform in the future. It can be valuable in helping you create an annual income projection, and can be used to help show investors and creditors why they should get on board with your business.

This spreadsheet can record income from up to four different products or services, so can be used in a variety of areas. For restaurants, which have slightly different sales and expenses to other businesses, please see the specific restaurant profit and loss statement we have created. It is designed to work over a year, with four columns for entering data over each of the four quarters. Should you require a projection covering a longer period of time, this can always be altered to show data for whole years, rather than quarters, simply by changing the text. Please see our balance sheet spreadsheet if it is a balance sheet, rather than profit or loss statement that you require.

Profit and Loss Statement

Description

There is space on the spreadsheet to enter everything you need in order to create a profit and loss statement. The only information you need to fill in is the white cells, where data from each quarter should go. The spreadsheet will automatically calculate percentages and totals based on this information.

Income

The income section allows you to keep track of any money you are bringing in through sales of your products and services. Names of your individual products and services can be entered in column B (in place of the Product/Service 1) text, simply by clicking in the cell and typing over it.

Your gross profit will be calculated automatically once you enter your sales revenue and cost of sales data.

If you receive any non-operation income, for example rental or interest, fill this out below, as this will be used to calculate your total income.

Your total income will be calculated by adding both your sales revenue and non-operation income, minus your cost of sales.

Expenses

The expenses section is split into two main parts: operating expenses and non-recurring expenses. The spreadsheet will combine all of this information and give you a total of your expenses. The operating expenses section is split into 3 subsections, making it easier to fill in. Each of these subsections has space for you to add up to 2 additional expenses in the Other expenses (specify). As with the products and services, this information can simply be typed over.

The marketing and advertising section covers things such as standard advertising and direct marketing.

The development section allows you to record details of expenses including technology licences and patents.

The administrative section is the biggest of the 3 subsections, allowing you to record everything from wages through to office supplies and building maintenance.

It is important to keep track of your non-recurring expenses separately, as when it comes to analysing the data in your profit and loss statement, if you have made a loss, or the profit margin is poor, it is easy to see how much you spent on things like computer software and hardware that is unlikely to need replacing for several years.

Taxes

The amount of tax paid varies by country, and in many cases even by region within the country. This spreadsheet therefore does not try and calculate the tax you have paid, rather there is space for you to fill out all of your tax information, covering income taxes, payroll taxes and real estate taxes. There is also space for you to specify and enter details of any other taxes that apply to you.

Net Income

There is nothing to be filled out in the net income section of the spreadsheet. It simply takes your total income, and subtracts all of your expenses, including taxes.

Share Distributions/Dividends

Depending on how your business has been set up, you may take dividends as an owner or shareholder instead of, or in addition to your wages. This information needs to be filled in so that the spreadsheet can calculate your net profit correctly.

Net Profit

As with the net income section, there is nothing here to be filled out. The spreadsheet takes your net income, minus any share distributions and dividends to calculate your net profit, both in terms of actual numbers and as a percentage of your sales. If you have filled in information for more than one quarter, this will be added together in order to create a total for the year so far (Year to Date). These details are useful for creating a financial plan projection.

Out of all the business plan, I was dreading the financial section most, however it’s probably the most important. It addresses how much money you need to start your business, keep it operating, when you’ll be profitable, what you can afford, and where the money even comes from– among other things.

Since you can make your forecasts as detailed and accurate as you want, just the thought of endless numbers makes my head spin! To help start somewhere, I compiled a collection of financial basics to include in your business plan.

Financials Contents

Budget:

• Calculate your start-up costs. What is needed to open the doors of your coffee shop? This includes all business fees, permits, licenses, insurance, marketing, rent, equipment, and beginning inventory. You should probably include cash float to keep on hand, because if one month no money comes through the door, you’ll still have to pay those operating expenses.
• Calculate your operating expenses. These are the costs to keep your business running day to day, and month to month. This includes business and legal fees, rent, payroll, and your product inventory. Regardless of making any sales, these need to be paid.

Forecast:

• Draft Pro forma statements to forecast your financial projections. Pro forma just means the numbers are estimated. Depending on how detailed your information is, you can choose to have everything in one excel statement, or create different sheets for your projected sales, income, cash flow, and balance sheet statements. Look up some of these statements to get familiar with the layouts.
  1. Sales (or revenue)- Estimate how many how many units you’ll sell for what price based on your market share. If you have 150 customers a day, and they each spend $5, your projected sales will be $22,500 a month. Don’t forget to account for seasonality and days open a week.
  2. Income (or profit & loss)- Estimate your profit from your projected sales after all your expenses are paid:
     Revenue (or sales or income)
     – Cost of Goods Sold (variable cost of selling your product)
     = Gross Margin (or profit)
     – Operating Expenses (fixed costs)
     = Net Profit
     
  3. Cash flow–Estimate the balance between cash inflows and outflows. This statement keeps track of how much cash you have at any given point:
     Starting Cash
     + Cash In
     -Cash Out
     = Ending Cash
  4. Balance Sheet– Your balance sheet takes a “snapshot” look of your business financials at any given time, usually month to month:
     Assets (cash, accounts receivable, inventory, etc.)
     -Liabilities (debts, accounts payable, accrued expenses, etc.)
     = Net Worth (or capital)

Come up with different business scenarios: pessimistic, realistic, optimistic and breakeven figures (covering all costs, but no profit). Have figures for every month for the first year, then each year for the next three years. Don’t forget to address assumptions madein your projections.

• Calculate your break-even point. This is the point when all your start-up and operating costs are covered, and you are making profits. Based on your profit and loss, know how long it will take to pay off those start-up costs. Also know how many coffees you need to sell to pay expenses every month. One basic equation you can use:
  BEP = (Cost of Goods Sold + Operating Costs) / Dollars Per Sale
  = transactions per month
  = the number of sales per day to cover your costs and break even

Funding:

• Explain the source and use of funds. Where is your money coming from? If you’re raising money from investors, detail exactly how you plan to use their money. Include where you plan on allocating your profits. When and how much do you plan on paying yourself to cover your own living expenses?
• Mention future plans or exit strategy. Where do you see your coffee shop going? Whether it’s franchising it or selling it, have a plan whether or not your future turns out to be profitable, or running at a loss, or even whether something happens to you where you’re not able to continue the business.

There are different techniques and strategies to predict your numbers, many templates you can use, different things you can include or omit– so research a few and do what works for you. Whether it’s simple or detailed, make sure you understand and find it useful. Definitely draft a budget, sales projections and a profit-loss statement for your company, as many templates are available online too. If anything, your accountant can provide an actual profit/loss, cash flow, and balance sheet you can use for your business.

Coffee Shop Profit And Loss Template Word

I used a downloadable template from “Start & Run A Coffee Bar,” Matzen & Harrison that combined the revenue, profit/loss and cash flow projections in a spreadsheet.

Click here for a downloadable Dream|a|Latte Financials Checklist to help outline the financial section of your business plan!

Other Coffee Shop Business Plan Sections:

• Marketing: Market/Industry Analysis, Competitive/Internal Analysis, & using the Marketing Mix

Sources:

• MSU Management Program

Coffee Shop Profit And Loss Template Download

Note: As a fellow aspiring entrepreneur that simply wants to share my journey with you, know this is information I’ve gathered from various books on starting a coffee shop, business websites, and courses that have helped me in writing my business plan to start a coffee shop. I only hope to share some of these resources to help you get started and inspired, however this is by no means extensive. All materials available in this series are for informational purposes only, and not to be business consulting or legal advice– so do contact a licensed consultant, accountant, or attorney to obtain advice with respect to any particular issue or problem.

Coffee Shop Profit And Loss Statement