Sample Income Statement And Balance Sheet For Small Business

An income statement summarizes your revenue and costs and shows your net profit in your business plan.

Sample income statement and balance sheet for small business. This income statement template was designed for the small business owner and contains two example income statements each on a separate worksheet tab see the screenshots. These topics will show you the connection between financial statements and offer a sample balance sheet and income statement for small business. Unlike the balance sheet that looks at a particular time period the purpose of an income statement is to see how much a business earned and spent in a specific accounting period. Invested in the business.

The statement is often used at the end of a. The first is a simple single step income statement with all revenues and expenses lumped together. Sample transactions debits and credits our six transactions shown below will be the input for our income statement and balance sheet. No balance sheet statement is complete in my opinion without an income statement to go along with it.

As a small business owner i find the income statement to be more useful in the general operation of the business but the. The figure shows the company s annual revenues costs and profits for the most recent year as well as for. Financial statements can be challenging for small business owners and even look like a foreign language. Example balance sheet assets current assets cash 20 000 accounts receivable 15 000 inventory 150 000.

However understanding the balance sheet and income statement gives a small business owner the foundation for making wise financial decisions. Download a balance sheet template to help budget an individual personal or company profit and non profit to calculate the income and expenses for a given time period a simple calculation is the person or company equity plus assets current assets fixed long term assets and any other assets minus expenses current liabilities and long term liabilities to get the final balance. We invested 3 000 in the business so our checking account cash receives a debit and we credit an equity account called paid in capital. Take a look at how a gift shop called broad street emporium uses income statements to manage business finances.