2023 Income Statement – Profit & Loss Statement – Small Business

Description
An income statement is one of the three financial statements of a business or a company. Balance Sheet and Cash Flow Statement are the other two.
The income statement is also called using the following names:
Profit and Loss Statement (P&L)
Statement of Profit or Loss
Revenue Statement
Statement of Financial Performance
Earnings Statement
Statement of Earnings
Operating Statement
Statement of Operations


There are 7 parts (or key components) of an Income statement as below:
1. Sales/Revenue: Sales generated by company
2. Cost of Sales/Cost of Revenue: Cost of producing the goods sold
3. Gross Margin = Sales – Cost of Sales
4. Operating Expenses: Expenses in operating the business
5. Operating Income = Gross Profit – Operating Expenses
6. Other Income/Expense Net: Net of non-operating income/expense
7. Net Income = Operating Income – Other Income/Expense Net


There are three calculated indicators in the Income Statement. Their simple formulas are shown below.
i. Gross Margin = Sales – Cost of Sales
ii. Operating Income = Gross Margin – Operating Expenses
iii. Net Income = Operating Income – Other Income/Expense Net


Creating Microsoft’s income statement as a sample is very easy with our Free template.
Step 1: Define transaction categories and subcategories.
Step 2: (Optional) Customize the terms used.
Step 3: Enter quarterly transactions

Step 4: Customize Income Statement


Benefits of this template :
1. All the calculations/math are done automatically
2. Flexible (Monthly/Quarterly/Yearly)
3. Dynamic – Number of subcategories
4. Customize – Change the labels easily
5. Enter raw transaction-level data.