49+ Make A Professional Report with These Free Download Income Statement Template Here

Having an income statement is one of the most important things for all companies. WEll, this is a little bit overwhelming at first but at the end knowing the cash flow will be the best way to notice whether your company is in healthy status or not. To find a clear picture about it, the balance sheet, cash flows and the incomes statement itself are the major points to underline. This will help you to make the decision and decide what you will do for the short or long-term future. And don’t worry! Making an income statement template is not as tricky as you think. You still have the income statement template.

What Is an Income Statement?

The income statement is a crucial thing which this is one of a way to measure a company’s performance and it will be submitted to the Securities Exchange Commission (SEC). Besides, the income statement represents a report within a certain of time indicating the duration.

Moreover, the statement focuses on the revenue, losses and also gains instead of focusing on the cover receipts or even the cash payments. The income statement tends to focus on the details sales and the net income as well as the EPS (earnings per share).

What Are Included in the Income Statement?

The income statement template actually gives you quick arrangement on how to calculate your revenue in an easy way. However, you need to make yourself be familiar with what cover inside the income statement. Even though the format might be different, at least it will cover the following aspects.

Revenues and Gains:

  • Operating Revenue – It is related to the primary activity. For the manufacturers who produce a product, distributors, wholesalers, and retailers the revenues are seen from the product sales. Meanwhile, for a franchise or a company that focuses on the service, the revenue will be seen from the activities.
  • Non-operating Revenue – The revenue is taken from the secondary activities that don’t include the sale of goods and services. This might come from the interest from the money lying in the bank, properties and so on.
  • Gains – This comes from other activities especially the long-term assets, non-time non-business activity for example selling the unused van, the subsidiary company as well as selling off old transportation.

There is a misconception between the revenue and receipts. Remember that receipts come from the cash, meanwhile the revenue focus on the sales I certain times.

 

The benefits of income statements are not only about providing the profitability or a business. This also gives an insight for the internal company compared with other sectors which ones are more profitable. This report is also provided in the segment levels and also the department to give a further insight into the development to each sector and analyzing what can be done in the near future. This also helps the manager to expand the decision based on the report, whether it is the production of the capacity, pushing sales and so on.

In this case, making a reported statement is very important even though for a small business. You can download our income statement template in this page for free and start applying a healthy report there.

 

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