Basic Income And Expense Statement

Income statement starts with the revenue which a company makes by selling products to its customers.

Basic income and expense statement. Businesses selling physical goods can use the income statement to track changes in returns cost of goods or operating expenses as a percentage of sales to quickly fix issues in the business. Income and expense forms are what is used by those who would like detailed figures regarding how much is being made and spent. An income statement shows the income and expenses of a company over a specified period of time. The second worksheet shown on the right is a multi step income statement that calculates gross profit and operating income.

Income statement provides a basic summary of the company s revenues and expenses within a specified period. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. Since revenue sits at the top of the income statement it is known as the top line for the company. These are basically personal expense forms but not only does it factor in all types of expenses made it also factors in all sources of income and uses it to assess whether it is above or below the total amount of expenses.

The income statement summarizes a company s revenues and expenses over a period either quarterly or annually. This financial statement can also be used to track revenue and expenses to plan annual budgets and sales projections along with determining what areas of the business are over budget or under budget. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. This income statement template was designed for the small business owner and contains two example income statements each on a separate worksheet tab see the screenshots the first is a simple single step income statement with all revenues and expenses lumped together.