What is Income Statement Template?
An income statement is an important financial statement that provides the quick recap of the company performance over a specified time. This essential statement summarized the whole picture of business expenses and revenues.
The income statement template can be formatted in various ways. It can be single-step income statement or the multi-step income statement. The company should use the sheet as per their convenience. The single step income statement exhibits all expenses and revenues while omitting the income tax expense. Both operating income and gross profit can be mentioned on a separate line in the multi-step income statement.
Title, Company Details, And Date:
The professional document contains the title, date and company details on it. Mention the title of income statement on the template. It must be clear, bold and visible. Likewise, mention the duration for which the statement is being prepared. Customize the income statement by mentioning the name of company and contact details of it. The company logo should be displayed on the statement in an adorable manner.
Mention the revenue generated during the mentioned duration. The revenue includes service revenue, sales revenue, interest revenue and other revenues. Mention the number of revenues. Design it in an easy and simple format so that it can be utilized and comprehended easily.
All the expenses made or money spent by the firm during a specified period of time is summarized in the expense field. The expense includes advertising, bad debt, commissions, rent, payroll taxes, depreciation, employee benefits, cost of goods sold, travel, utilities, sales and wages, insurance, furniture and equipment, maintenance, repairs, research and development and others. Mention all the expenses incurred in front of each expense field.
The income statement facilitates the owner to know either the business is working smoothly and efficiently or not. The fields of net income provide the value of income over a specified period of time. The progressive increase in the income statement depicts the positive growth of it. Likewise, the decrease in income depicts that it is the right time to make important decisions for the firm.