Income Statement Format For Service Company

The income statement of a service type business is quite simple.

Income statement format for service company. The income statement also called the profit and loss statement is a report that shows the income expenses and resulting profits or losses of a company during a specific time period. See how creating an internal income statement can help you stay on top of your business matters. While income statements vary widely in appearance the overall format remains the same. For example consider the income statement shown in illustration 4 3 for boc hong company.

Here is a sample income statement of a service type sole proprietorship business. Free income statement template. Let us name the company strauss printing services all amounts are assumed and simplified for illustration purposes. Example 2 multi step income statement.

Remember the income statement can be used to track the service business s financial performance for a given month quarter or year. It is more rep resentative of the type found in practice. The income statement starts with a heading made up of three lines. The income statement can either be prepared in report format or account format.

As compared to a single step income statement a multi step income statement examples are more complex. The multi step income statement format comprises a gross profit section where the cost of sales is deducted from sales followed by income and expenses to reach an income before tax. Revenue accounts are presented first followed by all of the company s expenses. Sample income statement for abc cleaners.

The statement covers the company s financial performance for a given period a month quarter or even year. Illustration 4 2 income statement boc hong company income statement for the year ended. Use only those categories that pertain to your small business. It is an essential tool when looking to define the company s sales its direct costs its indirect costs in addition to its gross profit and net profit.

This statement is a condensed version of the more detailed income statement presented in illustration 4 2. For example if you have a service business you would probably use fees collected or something similar.