Income statement template
The income statement (sometimes referred to as a profit and loss statement) shows you if your company has earned a profit over a specified period of time. Your external accountant prepares an income statement for the entire year for tax filing purposes, but you need information more frequently to keep better track of your business. While an income statement is usually generated through an accounting software, you can use this free template to create one manually if needed.
The income statement allows you to see important information about your business at a glance, including:
- Revenue for the period—The money that is earned from customers when a product is sold and/or a service is provided. It is also possible to earn money from selling equipment or other assets, but this is considered a non-operating item.
- Expenses for the period—The money that is spent running the business (cost of raw materials, inventory, wages, rent, utilities, etc.).
- Net income (revenue minus expenses) for the period—Net income, or profit, represents the money that is remaining after all expenses have been paid. This value indicates whether your business is profitable (positive net income) or not profitable (negative net income).