Your income statement, also referred to as profit and loss statement (P&Ls), is an important resource that can give you a clear look at your business’s financial health and show you where you can cut costs and improve performance for improved results. Your income statement provides you with a clear look at your revenue, expenses, and all of the costs of supplies, goods, and services. By comparing all of your income against your expenses, you can see your clear net profit.
Because your P&L shows you such in-depth information about your income and expenses over a given period, such as monthly or quarterly, you can create a strategy to leverage services or products that are helping your profits, and determine how to minimize or eliminate poorly performing goods or services.
Analyzing your profit and loss statements is an excellent way to make informed changes in your Rolesville business, determine future operations, and even consider how you can expand and grow. A thorough income statement gives you the knowledge you need to:
At our small business accounting firm, we partner with all types of sales and service-based businesses in Rolesville, helping them prepare income statements and offering other financial services. We recommend businesses in the early stages receive monthly statements because that is when there are more variables in your finances 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 know that the first step toward increasing your profits is by having a clear picture of how your operations are working for or against you. Our team of CPAs are here to help you create a stable and thriving business by providing income statement preparation and accounting services for your small business. Call C.E. Thorn, CPA, PLLC today at 919-420-0092 or complete our online contact form to discover how we can help you succeed!