Income Statement Of Service Company Example

Introduction by kristin 1 comment service companies have the most basic income statement of all the types of companies.

Income statement of service company example. Therefore the income statement will be a basic breakdown of income and expenses. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. Since service based companies do not sell a product the income statement will not contain cost of goods sold. Income statement provides a summary of all the revenues and the expenses over the time period in order to ascertain the profit or loss of the company and the example of which includes income statement prepared by a company xyz ltd.

Since service based companies do not sell a product the income statement will not contain cost of goods sold. 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. Here is a sample income statement of a service type sole proprietorship business. 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.

Tag archives for service company income statement income statements for service companies. 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. Let us name the company strauss printing services all amounts are assumed and simplified for illustration purposes.