In any business setting, finances will be a big topic. Companies monitor their income performance to determine their losses and gains, and financial consultants and advisors are hired to help them prepare and review financial statements to know their strengths and weaknesses and how they can do better.
It is very important to keep track of a company’s financial status to maintain stability and competitiveness. For the reasons this is helpful for a company, it is also helpful for your personal finance system. These samples of preparing income statements will help you understand and draft an income statement for your company or for yourself.
Accounting Income Statement Examples
Managerial Accounting Income
Financial Accounting Statement
Accounting Multi-Step Income Sample
Annual Income Statements
Employee Annual Income
Personal Annual Statement
Simple Annual Statement Example
The Purpose of Income Statements
An income statement is just one of the many documents included in a financial statement, which also includes other financial reports like the balance sheet and cash flow statement. Also called the profit and loss statement, the income statement focuses on the revenue and losses of the company, basically providing the company an overall view of their gains and losses in a specific period.
This is very important for an organization to know their profitability. It tells them if they have higher expenses than income so it provides them an opportunity to improve.
Money is the fuel to run a business. Having no knowledge on where your money ends up is the same thing as leading your business to its ruins. Preparing a profit and loss statement will allow you to have a hawk’s eye on your company. You will be able to identify if you are losing a lot that gaining. Then you can have a better perspective on how to properly pull the strings to keep your company from falling apart.
Business Income Statements
Small Business Income Statement
Start Up Business Income
Service Business Statement
Consulting Business Income Sample
Blank Income Statement Example
Free Blank Income Statement
Blank Business Income Example
Blank Personal Statement
Company Income Statement Samples
Service Company Income Statement
Construction Company Statement
Insurance Company Income
Types of Income Statements
There are two types of income statement: single-step income statement and multi-step income statement.
- Single-step Income Statement. This statement has two separate fields. The first one is for the revenue (cash inflows) and the other one is for the expense reports (cash outflows). In one step, you calculate the net profit or loss based on the total revenue minus the total expenses. This basic format is also used when creating a sales report.
- Revenues: Returns from business dealings, market analysis shares, and corporate enterprise, including all the products the company has sold, investment returns, and suppliers’ remittances.
- Expenses: Anything coming out of the company’s pocket, including but not limited to employee salary and bonuses, office and building lease, working materials, hardware maintenance, utilities, employee training and seminars, and other operating costs.
- Multiple-step Income Statement. A multi-step income statement has multiple sub-totals. It separates the sub-totals of the operating revenues and operating expenses from the non-operating revenues and non-operating expenses. This more detailed alternative to single-step statements allows identification of specific information.
- Operating revenue. The revenue from the main operation of the business statement, such as the revenues from a product sales.
- Non-operating revenue. The non-related sales income or revenue. Examples are revenue from sales of assets, dividend income, office leases etc.
- Operating expense. The costs to operate the business, such as employee salary and compensations, building lease (if applicable), hardware and software supplies, furniture and other operation equipment, etc. Basically, any expense used for the main operation of the company to write an income statement.
- Non-operating expense. Includes costs that are not a regular part of the actual operation, such as paid interests on major and minor loans used for the capital, lawsuit settlement fees, discarded inventory charges, etc.
Daycare Income Statements
Home Daycare Income Statement
Dog Daycare Income Sample
Projection Statement for Daycare
Multi-Step Income Statement
Multi-Step Comprehensive Income
Company Multi-Step Statement
Multi-Step Income Sample Statement
Monthly Income Statements
Personal Monthly Income
Blank Monthly Income Statement
Blank Business Statement Free
Manufacturing Income Statements
Manufacturing Company Income Statement
Manufacturing Business Statement
Manufacturing Pro Forma Income
Personal Income Statement Examples
Basic Personal Income Statement
Personal Business Income Statement
Partnership Income Statements
Partnership Business Income
Partnership Company Income Statement
Partnership Accounting Statement
Difference between Profit and Loss Statement and Income Statement
Some people might really be confused about the difference between a profit and loss statement and an income statement. That is because they have a common denominator: they both talk about revenues and expenses. So how are they different? The answer is in their definition.
- Income Statement. This is a report writing of a company’s revenue and expenses at a certain period of time. It is devised to track the business’s growth, and determine the operating and non-operating revenues and expenses.
- Profit and Loss Statement. This is a guide to develop sales objectives and and design competitive prices for the company’s goods and other products. It is an effective marketing report included in real estate statements because it focuses on the goods and the possible returns.
In other words, to read an income statement and a profit and loss statement are different in their function. An income statement has different focuses whereas the profit and loss operates toward one goal.
Real Estate Income Statements
Real Estate Agent Income Sample
Real Estate Company Income Sample
Commercial Real Estate Statement
Service Income Statements
Service Industry Income Statement
Cleaning Service Sample Statement
Service Organization Income Example
Restaurant Income Statement Samples
Small Restaurant Income Statement
Restaurant Monthly Statement
Start Up Restaurant Income Example
Projected Income Statements
Annual Projected Income Statement
Blank Projected Income
Business Projected Statement
Bakery Income Statement Examples
Bakery Shop Income Statement
Small Bakery Income Statement
Basic Income Statements
Basic Accounting Income Statement
Basic Business Income Example
Basic Company Statement
Basic Monthly Income Example
Tips for Reading and Analyzing Income Statements
Analyzing an income statement could be a challenging task because of the many details you have to train your eyes on. Here are some tips that could help you read and better understand an personal statement.
- Be Cautious. Your income statement contains crucial information about your business. Remember to always pay attention to the important details such as the company’s expenses, the sources of the revenues, and the other businesses involved during that period.
- Compare and Check. Whether it is a annual, quarterly, or a monthly statement of your income, make sure to keep copies of all of it and routinely make sure the numbers add up, especially if you are the managing director of a company.
- Determine the Important Factors. If you own the business, make sure you know the differences between an operation expense, non-operation expense, operation revenues, and non-operation revenues. Understand the priority of each factor. Operation expenses should be the main targets of where your finances are going. If you have low revenue but the income statement shows that there are more expenses on non-operation than on the operation, never hesitate to raise your eyebrows.
An income statement is an essential report that contributes to the growth of the company. So whether you are the one making the statement or the one analyzing it, always consider all the business factors involved. Remember that this is not just a written statement objectives of your revenues and expenses but it is also a determining factor of your company’s future.