Income Statement For Small Retail Business

Often referred to as your store s financial reports by a banker these statements report on the history of your business and can also help predict the future.

Income statement for small retail business. An income statement is one of the most important business financial statements. The income statement is a very useful document for the investors of the small retail business if it has any yet because it allows them to look at the revenues and expenses of the business. Income statement for the seven months ending july 31 2015 the income statement is also known as the statement of operations profit and loss statement and p l income statement. Last the income statement can be used to estimate income tax liability as it includes depreciation which is used as a business write off.

While not for everyone most small business owners will find the. A profit and loss statement p l is an accounting of how your retail store performed during a certain period of time. For a service business you simply determine gross receipts then subtract business expenses from gross receipts to arrive at net income. The easiest income statement to prepare the single step income statement provides an at a glance look at revenues and expenses.

You use an income statement to track revenues and expenses so that you can determine the operating performance of your business over a period of time. This information is useful when they are deciding if the company is doing well or not as well as deciding whether to invest keep or sell the investments the particular investor has in the business. Reporting income for a retail business reporting income for a retail business is a bit more involved than for a service business. Small business owners use these statements to find out which areas of their business are over or under budget.

The balance sheet and the income statement are two of the three major financial statements that small businesses prepare to report on their financial performance along with the cash flow statement. The figure shows the company s annual revenues costs and profits for the most recent year as well as for the previous year. Sample of profit and loss statement for small business and sample income statement for small retail business can be beneficial inspiration for those who seek a picture according specific topic you can find it in this site. An income statement summarizes your revenue and costs and shows your net profit in your business plan.