Generating Income Statements in Chapel Hill

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:

  • Revenue
  • Expenses
  • Cost of goods or services

Leveraging Your Income Statement for Small Business Success

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.

Functions of Your Income Statement

By managing an income statement businesses can:

  • Track revenue/income streams
  • Compile expenses
  • Determine net profit before and after taxes
  • Business operating performance
  • Analyze areas of business under or over budget
  • Monitor returns, costs, etc., and how they impact sales operating costs
  • Easily find unexpected expenditures
    • increase in supply costsgenerating income statement with Chapel Hill small business accountant
    • increase in operating costs
    • utility increases
  • Prepare for tax liability for fiscal year
  • Determine depreciation of capital assets
  • Projects interest to be paid to debts
    • Short term
    • Long term

Contact a Chapel Hill Small Business CPA for Income Statement Support

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.

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