An income statement, also called your Profit and Loss Statement is a report that gives you a comprehensive look at how your business generates income, where your money is going, and what your net profit for a given period is after all the expenses and liabilities are accounted for.
A properly prepared income statement report will include:
The statement will include all income for a given period (e.g., month, quarter or annually), by subtracting all expenses from revenue to determine profit or loss for the period. While every business varies depending on your reporting needs, our Chapel Hill small business accountants recommend businesses in the early stages receive monthly statements. As a business ages and expenditures stabilize, income statements can be reduced to quarterly or annually.
Over time, the income statements will help you more effectively plan for the future, whether you want to pay off debts more quickly or begin a plan for expansion.
By managing an income statement businesses can:
Working with an experienced small business accountant will help your business survive the volatile first years of its existence and prepare you for years of success, and our knowledgeable accounting team is here to help you along the way. Schedule a consultation by completing the online form or calling 919-420-0092.