jQuery UI Tooltip - Default functionality


Your Income Statement...


Meet Deb Mason


Please Note: This Site Receives Commissions From Affiliate Links And Third-Party Advertising. 

  1. eBizBAM Home
  2. Definitions
  3. Your Income Statement

Your Income Statement is one of the big 3 financial reports that you will generate to establish the profitability of an existing (established) business or the profit potential of a new business.

business financial plan

The Income Statement is a representation of the net results of the small businesses operations over a specified period of time, usually a month, a quarter or for a full financial year.

The statement is generally compiled on a double entry bookkeeping or accrual accounting basis, so that the revenues reported are matched with the expenditure incurred to generate the sales.

Because the Income statement reports on the profit or loss for the period it is sometimes called a Profit and Loss Statement.

The amount of profit or loss reported in the statement comprises of net revenues less expenses for the period.  The Profit and Loss or Income Statement reports on four types of activities:

  • the cost of producing or manufacturing the goods or services sold by the business,
  • the expenses incurred to market, distribute the product or service to the customer and the administrative costs of running the business,
  • the financing costs of the business, for example interest or dividend costs, and of course,
  • the income earned by the small business during the reporting period.

Basic Format of an Income Statement

The usual layout for an Income Statement is:

    Sales or Income Less Cost of Goods Sold

    Equals Gross Profit or Loss

    Less Operating Expenses
    Less Financing Costs
    Less Income Tax

    Equals Net Profit or Loss

 ...and it will look something like this:




Back to the top of Income Statement
Back to the eBizBAM Homepage 



Couldn't Find What You Were Looking for?

Try searching the site using the search box below:

Recent Articles

  1. eCommerce Online Business

    Apr 11, 18 10:10 PM

    An eCommerce Online Business involves creating an online or virtual store front. Your eCommerce site will be open 24-7 and will continue to operate even when you are asleep.

    Read More

  2. Accept Payments Online

    Apr 11, 18 08:47 PM

    If you are planning on incorporating e-Commerce as one of the methods of making money from your online business you are doing to have to consider whether or not to accept payments online and which mec…

    Read More

  3. Choosing Keywords

    Apr 11, 18 06:00 AM

    What to consider when you are choosing keywords for your site, why keywords are important and what you should and should not do with them.

    Read More


Special SiteSell Promotion