How to Explain Changes in Monthly Profit and Loss

1. Prepare the source and scope

Import sales.csv into a new worksheet with headers in row 1. Leave the source columns in their original order for the formulas below. Review the data dictionary before choosing the reporting period. Keep identifiers as text and convert numeric columns explicitly. Save a working copy so you can return to the original fixture.

2. Build the calculation

Calculate revenue less cost for each month in both years. Compare matching months, then reconcile the annual change to revenue change less cost change.

=(SUM(D14:D25)-SUM(E14:E25))-(SUM(D2:D13)-SUM(E2:E13))

3. Reconcile and interpret the output

The expected check is annual gross profit increase: 14400 USD. This fixture supports a gross-profit bridge only. Add operating expenses, interest and tax to explain a full profit-and-loss statement. If your result differs, inspect the selected rows, data types and date filters before changing the formula.

4. Adapt the workflow to a recurring report

Replace the sample with a copy of your own source, retaining the same column meanings and units. Extend bounded ranges to include new rows, refresh PivotTables where used, and compare the result to an independent source total. Record the reporting period and any exclusions beside the output. Do not label revenue minus cost of goods sold as net profit.