Income statements, also called profit and loss statements (P&Ls) are one of the most important tools you can use to get a clear look at your business’s financial health and determining where you can improve performance for future success. Your income statement provides a comprehensive look at your revenue, expenses, and your cost of supplies, goods, and services. By comparing all of your income against your expenses, you can see your clear net profit.
Because your income statement shows such a comprehensive look at your income and expenses over a given period, such as monthly or quarterly, you can see how to leverage services or products that are especially profitable, and determine how to minimize or eliminate poorly performing goods or services. Analyzing your profit and loss statements empowers you to make informed changes in your Fuquay-Varina business, determine future operations, and even consider how you can expand and grow. A thorough income statement provides clarity and allows you to:
At our small business accounting firm, we work with all types of sales and service-based businesses in Fuquay-Varina, helping them prepare income statements and offering other financial services. We recommend newer businesses receive monthly statements because during the early stages, there are more variables and long-term tracking hasn’t been established. Once a business gets older and expenses become more stable, quarterly P&Ls are often sufficient.
We understand that the first step toward maximizing your profits is by having a clear picture of how your operations are working for or against you. Our team of CPA’s are here to help you create a stable and thriving business by providing income statement preparation and accounting services for small businesses. Call C.E. Thorn, CPA, PLLC today at 919-420-0092 or complete our online contact form to discover how our services can directly help your business.