Generating Income Statements for Cary Businesses

A profit and loss statement, or an income statement, refers to the kind of detailed report that shows an owner of a business what their potential ability is to generate income. They do this by comparing sales and expenditures, and then looking at the net profit that would be made after every expense is accounted for.  It is vital for all business in Cary to work with professionals to help them navigate the process of generating income statements.

Income statements that are prepared correctly include:

  • Revenue
  • Expenses
  • Cost of goods or services

Accurate Income Statements are Important to Small Business Success

Income statements show all the income received for a specified period of time, whether it be for a month, a quarter of the year, or annually. This is done by subtracting the expenses from the revenue so that the profit or loss for the given period can be known. These reports help business owners understand how they are doing and what needs to be done financially within their business.

At our small business accounting firm, we would recommend small businesses in Cary that are just starting out to receive monthly statements. As time goes on and businesses continue to develop and stabilize, we would recommend these statements to be reduced to either quarterly or annual reports.

After receiving several income statements about the small business, business owners can determine how to better strategize for expansion and growth.

Income statements help businesses to:

  • Track revenue versus income streams
  • Assemble expenses
  • Discover net profit before AND after taxes
  • Maximize operating performance
  • Analyze under or over budget areas of business
  • Track returns, costs, etc., and how they impact sales operating costs
  • Easily find unexpected expenditures
    • Increase in supply costs
    • Increase in operating costs
    • Increase in utilities
  • Prepare for tax liability for fiscal
  • Discover depreciation of capital assets
  • Determine project interest that must be paid to debts
    • Short-term
    • Long-term

Contact a Cary Small Business CPA To Generate Income Statements

Our experienced accounting team is more than willing to assist your small business with all financial endeavors. We can help you establish your small business and create a successful future for it for years to come.

Interested in a consultation? Reach out to our office by completing the online form or give us a call at 919-420-0092.

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