Income Statement Generation in Carrboro

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Income statements, also called profit and loss statements, are reports that give the business owner a detailed look at business’s ability to generate income. Income statements compare sales to expenses and calculate the net profit after all expenses have been deducted.

Properly prepared income statement reports include:

  • Revenue
  • Expenses
  • Cost of goods or services

Income Statements are Vital to Small Business Success

Profit and loss statements include all income for a given period (a month, a quarter, or a year), by subtracting all expenses from revenue to determine profit or loss for the period. Since every business is unique, each business requires a different level of reporting. It is recommended that newer businesses receive monthly statements and as the business ages and stabilizes, statements be reduced to quarterly or even annually.

Income statements help businesses determine their future operating performances and help the company plan for expansion.

By managing an income statement, businesses can:

  • Track revenue and income streams
  • Compile expenses
  • Determine net profit (before and after taxes)
  • Analyze different areas of business that are under or over budget
  • Audit returns, costs, etc., and how they impact sales operating costs
  • Easily find unexpected expenses such as increases in supply or operating costs
  • Prepare for their tax liability for the fiscal year
  • Determine any depreciation of capital assets
  • Project any interest that will be paid on debts

Our Carrboro Small Business CPAs Can Provide Income Statement Support

Help your business survive those unstable first years and prepare for success by working with a team of professional accountants. Our team of CPAs are experienced with small businesses and are here to help you along the way.

To learn more about how our Carrboro small business accountants can individually help your business, complete our online contact form or call (919) 420-0092.

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