Income statement template is an income statement sample that is part of business financial statement. Income statement template, balance sheet template and cash flow statement together can help investors to understand the business better. A well designed income statement example can help business presenting financial information.
Financial Statement Overview
Income statement can help interested groups understand business profitability. The income statement is a part of basic accounting and is basically a report that provides accounting information in the form of a report about a particular business organization to business partners, government entities, shareholders and other parties interested in the business. The core content of an income statement is the status of business activities i.e. profit or loss that is result of the operation of the organization. This statement is generally made for a particular period of time and is mostly made on a day to day basis, month basis or year basis, as per the need.
Income statement needs to include key information. The main parts of income statements are total revenue of the business, total costs of services provided or goods sold, gross profit, operating expenses and operating profit. The purpose of creating such statements is to accurately get a simplified and quick knowledge about the financial status of the business entity and to evaluate the current business position and future predictions.
Income Statement Template
When designing income statement template, it is important to consider income statement template objectives and functions. There are various types of income statement example for different objectives. For example, personal income statement template, common size income statement template etc.
There is free income statement example you may download. You may also use Microsoft Excel or Microsoft Word to design your income statement sample. During the process of design income statement sample, it is important to consider the income statement format, income statement layout and income statement outline in the income statement example.
The first key part in the income statement template is the header. In the section, you need to give basic information on the income statement. You may also need to state the period of income statement.
The second key part in the income statement sample is the main body. In the section, you need to give information on the operating income, expense, net income etc.
The last key part in the income statement example is the footer. In the section, you need to give notes on how those information are gathered and compiled.