Example Of Income Statement For A Service Company

What is an income statement.

Example of income statement for a service company. The balance sheet and the income statement are two of the three major financial statements that. The purpose of income statements. How to prepare an income statement for a service organization. While income statements vary.

Let us name the company strauss printing services all amounts are assumed and simplified for illustration purposes. Remember the income statement can be used to track the service business s financial performance for a given month quarter or year. Revenue accounts are presented first followed by all of the company s expenses. Downloads are subject to this site s term of use.

An income statement is just one of the many documents included in a financial statement which also includes other financial reports like the balance sheet and cash flow statement also called the profit and loss statement the income statement focuses on the revenue and losses of the company basically providing the company an overall view of their gains and. On the example broad street emporium income statement operating expenses reflect staff salaries advertising costs and production and delivery of the store s catalog three times a year. It is an essential tool when looking to define the company s sales its direct costs its indirect costs in addition to its gross profit and net profit. Watch your overhead expenses like a hawk.

1 the name of the company 2 the title of the financial statement and 3 the period covered by the report. Then subtract all operating expenses. Downloaded 35 000 times. Service companies have the most basic income statement of all the types of companies.

Since service based companies do not sell a product the income statement will not contain cost of goods sold. Like all businesses one of the main financial statements a service company will prepare is the income statement. The income statement also called the profit and loss statement is a report that shows the income expenses and resulting profits or losses of a company during a specific time period the income statement is the first financial statement typically prepared during the accounting cycle because the net income or loss must be calculated and carried over to the. The income statement starts with a heading made up of three lines.

Here is a sample income statement of a service type sole proprietorship business. The statement covers the company s financial performance for a given period a month quarter or even year. Download free version doc format download free version xls format my safe download promise. By examining a sample balance sheet and income statement small businesses can better understand the relationship between the two reports.

Every time a company records a sale or an expense for bookkeeping purposes both the balance sheet and the income statement are affected by the transaction. This projected income statement will assist you in forecasting the income you can expect over a twelve month period.