An income statement is a financial report that describes a company’s monetary performance over a particular fiscal year. It evaluates the summary of revenues and expenses of a company or an organization whether are operating or non-operating activities. Income statement is also known as profit or loss statement because it delineates either your business is going towards profit or loss. If you are running a small business or a company we recommend you to use following income statement templates given in our article.
Income statement template will allow you to know which expenses are incurred over a year and resulting profit or loss. Unlike balance sheet, which summarizes company’s current performance, the income statement narrates its whole year performance. Income statement typically composed at the end of fiscal year because the net income or loss must be calculated and proceeded over to the statement of owner’s equity before other financial statements can be prepared. Making income statement allows investors and creditors to check overall benefits of company as well as how competently the company is making profits from its revenues.
Income statement has two formats that are generally prepared. Single-step income statement includes all expenses and revenues listed together whereas, in multi-step income statement cost of goods sold, operating and non-operating expenses are separated out and used to calculate gross profit, operating income and then net income. The operating portion of the income statement reveals information about revenues and expenses that are a direct result of regular business activities. Running your business on a very hard budget? Hopefully you’ll be able to make these income statement templates work for you.
Income Statement Templates Are Added Below
