Profit and Loss Template for Nigerian Small Businesses (in Naira)
🧰 Tools & Templates · By Fincaly Team · · 8 min read
A profit and loss template shows your income, subtracts your costs and leaves your profit for the period. This one uses Naira and a layout you can copy into a notebook or spreadsheet. The figures below are an example, not real data. Replace them with your own.
If you have never prepared a profit and loss statement, this is the simplest place to start. It takes about an hour the first time and ten minutes once your records are in order.
The profit and loss template
| Line | Amount (₦) |
|---|---|
| Income | |
| Sales | 1,200,000 |
| Other income | 50,000 |
| Total income | 1,250,000 |
| Cost of goods sold | |
| Stock and materials | 520,000 |
| Packaging | 40,000 |
| Total cost of goods sold | 560,000 |
| Gross profit | 690,000 |
| Operating expenses | |
| Rent | 120,000 |
| Salaries | 200,000 |
| Transport and delivery | 60,000 |
| Data, power and utilities | 45,000 |
| Marketing | 35,000 |
| Bank and POS charges | 15,000 |
| Total operating expenses | 475,000 |
| Net profit | 215,000 |
How to fill in the template
- Total income: add every sale and other income for the month, whether received by cash, transfer, POS or wallet.
- Cost of goods sold: include only what it cost to make or buy what you sold in the month.
- Gross profit: total income minus cost of goods sold (1,250,000 - 560,000 = 690,000). Read gross profit vs net profit.
- Operating expenses: list the costs of running the business.
- Net profit: gross profit minus operating expenses (690,000 - 475,000 = 215,000).
What each line means
- Sales: money earned from your main activity. Use the selling price, before any costs.
- Other income: interest, commission, rent from a spare space, or other earnings.
- Stock and materials: the cost of goods you sold, not everything you bought. If you bought a lot of stock but sold half, only the sold half belongs here.
- Packaging: boxes, bags, labels and containers.
- Rent: shop, kitchen or office rent for the month.
- Salaries: wages for staff. Include a fair amount for yourself if you work in the business.
- Transport and delivery: fuel, rider fees and your own travel for the business.
- Data, power and utilities: airtime, internet, electricity and generator fuel.
- Marketing: ads, flyers, promotions and photo shoots.
- Bank and POS charges: fees on transfers, POS and payment links.
Check your margins
Divide gross profit and net profit by total income:
- Gross margin: 690,000 ÷ 1,250,000 = 55.2%
- Net margin: 215,000 ÷ 1,250,000 = 17.2%
Learn what a healthy figure looks like in our profit margin guide.
Adjust the template for your business
- A trading business: keep stock and materials as your main cost of goods.
- A food business: include ingredients, gas and packaging in cost of goods. See food business cost of goods sold.
- A service business: cost of goods may be small, such as materials and subcontractors, with salaries as the main cost. See how service businesses track profit.
- An online seller: include delivery, packaging, payment charges and ad spend.
Build it in a spreadsheet
If you use a spreadsheet, put labels in column A and amounts in column B. Use simple formulas: total income as the sum of your income rows; gross profit as total income minus total cost of goods; net profit as gross profit minus total operating expenses. Copy the sheet each month, or add a column per month so you can compare. Keep a tab for raw transactions and another for this summary.
A second example: a service business
The same layout works when you sell services. Here is an illustrative month for a small design studio:
| Line | Amount (₦) |
|---|---|
| Client fees | 1,500,000 |
| Direct costs (stock images, subcontractors) | 220,000 |
| Gross profit | 1,280,000 |
| Salaries | 600,000 |
| Workspace rent | 150,000 |
| Software and subscriptions | 90,000 |
| Data, power and transport | 70,000 |
| Marketing | 40,000 |
| Total operating expenses | 950,000 |
| Net profit | 330,000 |
Here gross margin is about 85%, but net margin is 22%, because salaries and rent take most of the gross profit. For this kind of business, the lever is utilisation and pricing, not stock. See how to track profit without products.
Rules for a clean P&L
- Use the same categories every month so comparisons are fair
- Do not include owner withdrawals as expenses. See separating business and personal money.
- Match income and costs to the same month
- Do not include loan principal repayments as expenses, but do include interest
- Keep a note of one-off items, such as repairs or large purchases
Read your result
Ask:
- Is net profit higher or lower than last month?
- Which expense line grew most?
- Is gross margin steady, or are supplier costs rising?
- Does net profit match how the month felt and how the bank balance moved? If not, check cash flow vs profit.
Compare this month with last month and the same month last year. See month vs month comparisons.
Let the app do it
If you track transactions in Fincaly, the profit and loss report is built automatically. See features, or start with the bookkeeping guide. For a deeper explanation of each part, read understanding profit and loss.
Cover photo by StellrWeb on Unsplash.
Frequently asked questions
What is the difference between gross profit and net profit?
Gross profit is income minus the direct cost of what you sold. Net profit is what is left after you also subtract operating expenses such as rent, salaries and utilities.
How often should I prepare a profit and loss statement?
Monthly is a good habit for most small businesses, with a yearly summary for planning and for sharing with advisers.
Are the numbers in this template real?
No. They are an illustrative example to show how the layout works. Replace them with your own figures.