Generating Income Statements for Holly Springs Businesses

In order for a business owner to analyze their business’ ability to generate income, they must have an Income Statement or Profit and Loss Statement. Income statements are reports that compare sales to expenditures and the net profit after all expense have been accounted for.

A properly prepared income statement report will include:

  • Revenue
  • Expenses
  • Cost of goods or services

Why are Income Statements Important for Small Businesses in Holly Springs?

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. Since all businesses are unique, some require more advanced levels of reporting than others. Generally, our 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 a few per year or annually.

Over time, the income statements will help determine future operating performances to help the company strategize for expansion.

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 costsraleigh 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 Small Business CPA for Your Holly Springs Income Statement Preparation

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. Our fantastic accounting team is here to help you along the way. Give our team a call today to discover how we can help with all of your small business accounting needs.

Contact our office by completing the online form or calling 919-420-0092.

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