Service Business Income Statement Format

The most common expenses are preprinted to save you time.

Service business income statement format. If your company is a sole proprietorship this form will guide you to a professional looking income statement. Services sole proprietor. Service related businesses require a different format than the traditional profit and loss statement aka the income statement. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc.

Simply drop in your amounts on the lines provided. Ask a tutor for free. The traditional profit and loss focuses on sales of products and a corresponding cost of goods sold section to help the reader evaluate the gross margin. Stuck on math homework.

Let us name the company strauss printing services all amounts are assumed and simplified for illustration purposes. But in service the owner needs a profit and loss statement formatted to key in on overall productivity and costs. 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. 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.

Search for small business for matching templates. Here is a sample income statement of a service type sole proprietorship business. Revenues less expenses equal net. Remember the income statement can be used to track the service business s financial performance for a given month quarter or year.

Small business income statement. Create an income statement that shows revenue and expense over a period of one year with this accessible template. The income statement can either be prepared in report format or account format. Like all businesses one of the main financial statements a service company will prepare is the income statement.

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. The purpose of income statements. Then subtract all operating expenses. While income statements vary widely in appearance the overall format remains the same.

Since service based companies do not sell a product the income statement will not contain cost of goods sold. Service companies have the most basic income statement of all the types of companies. Therefore the income statement will be a basic breakdown of income and expenses.