Generating Income Statements for Wake Forest Businesses

An Income Statement or Profit and Loss Statement is a report that gives the business owner a detailed look at the ability for the business to generate income. Income statements 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

Income Statements are Important to 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. Each business is unique and require differing levels of reporting. Generally, our Wake Forest 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 Wake Forest 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. Our fantastic accounting team is here to help you along the way. Give our team a call today to schedule a consultation for your small business accounting needs.

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

2019 financial deadlines