Income statements are one of the most important reports you can use as a business owner. Also called profit and loss statements (P&Ls), these give you a snapshot of your business’s health and shows you exactly what your revenue and expenses are. Once you see your income compared to your expenses and cost of business, you’ll establish your net profit.
An income statement provides a total look at both your income and your expenses over a specific time period, often a month or a quarter. Using this report, you can see how to sell more services or products that are particularly profitable while seeing where and how you can reduce or eliminate low-margin goods or services.
Diving into your income statements allows you to make strategic changes in your Hillsborough business, determine what steps you can take moving forward, and even consider expanding your business. A thorough P&L statement makes it easier to:
At our small business accounting firm, we work with all types of businesses and industries in Hillsborough, helping owners and operators prepare their income statements and offering a variety of financial services. We recommend newer businesses run monthly statements because there are more variables during the beginning stages of a business operating, and long-term analysis and tracking hasn’t been established. Once a business stabilizes, quarterly income statements are generally fine.
We know that the first step toward increasing your profits is knowing how your business methods and operations are working for or against you. Our team of accountants are here to help you establish 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 learn more about how our services can directly help your business.