The major goal of your business is to make profits, and you need to be sure that you’re achieving this goal. Download Vencru’s income statement template to stay informed on just how well your business is performing.

What’s an income statement?

An income statement is an accounting report that tells you whether your business is profitable and how much profits you’ve made over a period, say, one year. It contains detailed information about your revenue, your expenses, and your net profit–that is, your profit after all expenses. An income statement is also known as a profit and loss statement. 

The income statement is one of the most important reports in every business, and it’s one that every business owner must fill. The report provides information about your company’s ability to generate profits, and it can help you raise more funds for your next business year if you need to.

Why do I need an income statement?

Income statements are useful for understanding the financial performance of your business. When you know that your brand is raking in more profits, you’re confident to approach the next business year with even bigger goals.

Also, income statements help you compare your business profits over time, by showing your changes in revenue and spending. The income statement can tell you if your expenses are growing faster than your income, causing you to make less profits than you made in the past year. With this insight, you can make moves to cut down your spending while keeping your revenue high.

How to fill an income statement template

Creating an income statement report is much easier with this template, available for download. Here’s a simple set of steps to fill out your template:

• Download and open your free template.
• Fill in your company name, address, and other details as applicable.
• Include the period being covered.
• Collect all records necessary to obtain information about your revenue and expenses.
• Add all revenue by filling in the revenue details and amounts.
• If applicable, add the ‘cost of goods sold’–that is, the cost of manufacturing or delivering products sold during the period.
• Calculate and fill in the ‘Gross Profit’ by subtracting the cost of goods sold from the total revenue.
• Next, add all expenses by filling in the expense details and amounts.
• Calculate and fill in the total expense amount.
• Calculate and fill in the ‘Net income’ by subtracting the total expense amount from the gross profit.
• Check to see if all details and amounts are correct.

More bookkeeping templates

Need more resources for your bookkeeping? Vencru has all the templates you need to keep your records in check, and they’re free to use.

• Billing Statement Template
• Debtors Statement Template
• Expense Report Template
• General Ledger Template

Even better, Vencru’s reliable bookkeeping platform helps you save time by generating these reports automatically for you. Vencru keeps all records up to date and gives you more insight into the numbers, so you never have to worry about time-wasting calculations and you’re equipped to make the best decisions for your clients and for your business.