What is the Right Income Statement Format?
Every business is going to need some sort of income statement. If you decide that you don’t want to do one, it’s going to be awfully hard to track your finances. If you’re new to the business world and you’re just trying to learn about all of these forms, that’s great.
I wanted to give you some links, as well as some simple steps that you can take when you’re looking to create an income statement for your business. It really isn’t that hard and if you think it is, you can always spend the extra money with an accountant.
I provided a very, simple example listed below, but if you want to get other examples as well, you can check out this website, as well as this one.
| Revenue | Q1 | Q2 | ||
| Consulting Services | 6,522 | 7,522 | ||
| Software | 955 | 1,233 | ||
| Book Sales | 233 | 255 | ||
| Total Sales Revenue | 7,710 | 9,010 | ||
| Costs to Run |
||||
| Consulting Services | 1,511 | 1,752 | ||
| Software | 288 | 288 | ||
| Book Sales | 95 | 95 | ||
| Total Sales Costs | 1,894 | 2,135 | ||
| Gross Profit (Loss) | 5,816 | 6,875 | ||
| Expenses | ||||
| Employees | 350 | 350 | ||
| Sales & Marketing | 1,522 | 2,122 | ||
| Other Operating Expenses | 180 | 210 | ||
| Total Operating Expenses | 2,052 | 2,682 | ||
| Operating Income | 3,764 | 4,193 | ||
| Interest Paid | 0 | 0 | ||
| Income before Taxes | 3,764 | 4,193 | ||
| Taxes | 1,317 | 1,467 | ||
| Net Income | 2,447 | 2,726 | ||
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