An Income Statement, or Profit and Loss Statement, is a report that shows you a detailed look at how well your business can generate income. Income statements compare sales to expenses and calculates your net profit after all expenses have been accounted for.
A properly prepared income statement report will include:
Your income statement is a comprehensive look at all income for a given period (e.g., month, quarter or annually). It is calculated by subtracting all the costs and outgoing expenses from the income generated to determine profit or loss for the period.
Generally, our small business accountants recommend businesses in Wendell who are in the early stages of opening 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 your business plan for expansion.
By analyzing an income statement, businesses can:
Working with an experienced small business accountant will help you keep your business going, even through the shaky first years so you can succeed. 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.