How To Prepare Income Statement Of A Company

An income statement otherwise known as a profit and loss statement is a summary of a company s profit or loss during any one given period of time such as a month three months or one year.

How to prepare income statement of a company. The income statement summarizes the results of a firm. Nonetheless if the company is subject to income tax the income tax expense should be deducted to get the net income. Just download an income statement template that suits your business and use it to easily prepare an income statement. The table below shows an example of a very simplified income statement.

The treatment of income taxes depends upon the applicable laws of the state or country. Income tax expense was not considered in the above example. Preparing an income statement should not be too hard. 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.

In this video video you will learn how to build an income statement in excel with data for any company. Free income statement templates. The income statement records all revenues for a business during this given period as well as the operating expenses for the business. The income statement of your company may be a little more complex and contain more line items.

Here we have more than five templates that can ease the work and take the stress off your back. To prepare an income statement generate a trial balance report calculate your revenue determine the cost of goods sold calculate the gross margin include operating expenses calculate your income include income taxes calculate net income and lastly finalize your income statement with business details and the reporting period. These templates are easy to use.