An Income Statement Format
When you’re looking to prepare up an income statement, I wanted to give you a give low down on how you can properly format your income statement. Not only is it going to make things easier for you, it’s going to make things easier for others as well.
Since you’re running a business, you’re obviously going to want to be as professional as possible. While there are formats for everything, it doesn’t necessarily mean that you’re going to have to follow them.
Your income statement is generally going to show all of your income, as well as your expenses over a certain amount of time. While I like to do it with software, some may want to do it in Excel or on a piece of paper. An income statement is also going to be referred to as a P&L.
A format you could use could be as follows…
| INCOME | ||
| Gross Sales | 545,650 | |
| Less Returns | 2,600 | |
| Net Sales | 543,050 | |
| INVENTORY | ||
| Purchases Made | 210,000 | |
| Delivery Charges | 3,200 | |
| Total | 206,800 | |
| Goods Sold | 192,833 | |
| Total Income | 350,217 | |
| EXPENSES | ||
| Salaries | 77,399 | |
| Utilities | 6,700 | |
| Rent | 19,299 | |
| Supplies | 3,200 | |
| Advertising | 11,209 | |
| Phone | 1,391 | |
| Repairs | 1,929 | |
| Taxes | 14,209 | |
| Total Expenses | 135,336 | |
| Net Income | 214,881 |
First, you’re going to have your income statement. You’re going to have to write down all of the income that you have brought in. If you have returns, as well as any other related items, mark those down as well. You’re going to want to subtract the two.
After you have those numbers are written down, you will have your net sales number. You will want to subtract the inventory numbers by your net sales give you your gross profit.
Once you have your gross profit, you’re going to have to mark down every expense that you have. From your employee’s salary to utilities. After expenses are written down, you should be able to get your net income for net income.
If you have Excel, you can also download a template here to make things easier.
<tr>
<td><strong>INCOME</strong></td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Gross Sales </td>
<td>545,650</td>
<td> </td>
</tr>
<tr>
<td>Less Returns </td>
<td>2,600</td>
<td> </td>
</tr>
<tr>
<td>Net Sales </td>
<td> </td>
<td>543050</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td><strong>INVENTORY</strong></td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Purchases Made </td>
<td>210000</td>
<td> </td>
</tr>
<tr>
<td>Delivery Charges </td>
<td>3200</td>
<td> </td>
</tr>
<tr>
<td>Total </td>
<td>206800</td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Goods Sold </td>
<td> </td>
<td>192833</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Total Income </td>
<td> </td>
<td>350217</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td><strong>EXPENSES</strong></td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Salaries</td>
<td>77,399</td>
<td> </td>
</tr>
<tr>
<td>Utilities</td>
<td>6,700</td>
<td> </td>
</tr>
<tr>
<td>Rent</td>
<td>19,299</td>
<td> </td>
</tr>
<tr>
<td>Supplies</td>
<td>3,200</td>
<td> </td>
</tr>
<tr>
<td>Advertising</td>
<td>11,209</td>
<td> </td>
</tr>
<tr>
<td>Phone</td>
<td>1,391</td>
<td> </td>
</tr>
<tr>
<td>Repairs</td>
<td>1,929</td>
<td> </td>
</tr>
<tr>
<td>Taxes</td>
<td>14,209</td>
<td> </td>
</tr>
<tr>
<td>Total Expenses </td>
<td> </td>
<td>135336</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Net Income </td>
<td> </td>
<td>214,881</td>
</tr>
</table>
Related posts:
