At the end of the project, the executing institution and various lenders must be given account of how the funds were used. The final account is part of the final report.
A profit and loss analysis compares the budgeted amounts for the various accounts and classes of accounts with actual expenditure and income.
Since a project has a limited timeframe, it usually does not require a dedicated balance sheet comparing assets and liabilities. It is sufficient to state the difference between total expenditure and income.
Ideally, your total project revenue will correspond to your budget. This means you have neither a deficit nor a surplus. A surplus is usually less problematic than a deficit. The surplus funds could be used to extend the project or for other projects. However, this requires the written approval of all lenders. Usually, the execution institution has to compensate for a deficit. Deviations must be plausibly justified in both cases.
In health promotion and prevention projects there is an increasing expectation for a favourable ratio of expenditure to income. Careful budgeting, periodic reviews and a final comparison of expected and actual income and expenditure allow you to compare and optimise cost and benefit. If you know why there are deviations in individual accounts, your next project budget will be more realistic.
Do your own profit and loss analysis for your project (or have accounting do one) and learn from deviations from the budget for your next project. Once all project-relevant data have been entered at the end of the project, a modern accounting program can generate the profit and loss analysis as a report at the click of a button. If you have created timesheets, you can analyse the time spent working and evaluate it with regard to the results of your project.