Generating Income Statements for Wendell Small Businesses

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:

  • Revenue
  • Expenses
  • Cost of goods or services

Income Statements are Important to Small Business Success

Income Statements from Small Business Accountants for Wendell businessesYour 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:

  • 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 expenses,suchas
    • increase in supply costs
    • increase in operating costs
    • utility increases
  • Prepare for tax liability for fiscal year
  • Determine depreciation of capital assets
  • Project interest to be paid to debts
    • Short term
    • Long term

Contact Our CPAs for Income Statement Support

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.

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

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