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Remember the income statement can be used to track the service business s financial performance for a given month quarter or year.
Income statement for service company example. Revenue accounts are presented first followed by all of the company s expenses. Therefore the income statement will be a basic breakdown of income and expenses. Let us name the company strauss printing services all amounts are assumed and simplified for illustration purposes. The income statement of a service type business is quite simple.
Since service based companies do not sell a product the income statement will not contain cost of goods sold. Here is a sample income statement of a service type sole proprietorship business. Service companies have the most basic income statement of all the types of companies. The income statement starts with a heading made up of three lines.
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