Income Statement For Services Business

Simply drop in your amounts on the lines provided.

Income statement for services business. The most common expenses are preprinted to save you time. If the net income is a positive number the business reports a profit. If it s a negative number the business reports a loss. Let us name the company strauss printing services all amounts are assumed and simplified for illustration purposes.

The income statement one of the four principal financial statements is a bit different for manufacturing and service companies. If your company is a sole proprietorship this form will guide you to a professional looking income statement. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. Sample income statement for abc cleaners.

The purpose of income statements. Service companies have the most basic income statement of all the types of companies. 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. Here is a sample income statement of a service type sole proprietorship business.

The income statement records all revenues for a business during this given period as well as the operating expenses for the business. The total revenue minus total expenses which gives the profit or loss. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. Therefore the income statement will be a basic breakdown of income and expenses.

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. Since service based companies do not sell a product the income statement will not contain cost of goods sold. Generally accepted accounting principles give specific guidelines on the recording of transactions and the presentation of financial statements. Remember the income statement can be used to track the service business s financial performance for a given month quarter or year.

Then subtract all operating expenses.