Income Statement or Profit/Loss Statement template is an Excel Spreadsheet to help you putting your financial transaction summary into readable report to your investors/stakeholders.
Managing a business is never become an easy task that may just flow as the time goes by. For the people who run their own business, they will need to be able to make a very nice balance of outcome and income and eventually make the income larger than outcome in order to cover up for the funds being used in a business. In order to keep everything on track, the report of income and outcome must be made very accurate and obvious. The report must also be checked and reviewed from time to time in order to maintain balance or solve problems those may occur in the process.
Meaning of Income Statement
This is why the income statement is needed. It is used to get a clear and accurate report of an income had by a company. By checking on the income statement every time it needs to be checked will give a good way of reviewing the report of income had by a company. The statement is very much made to be the clear image of the current condition of income in a company. The income reported in the statement is the clean income because it has been deducted by the outcome that also included in the statement.
Income statement is important for as business. In the statement, there will be the amount of the profit gross as well as the list of expenses and in the end the amount of profit made by a company through a product or a special event that is intended for the marketing purposes or other reasons. But, if you want to evaluate your company performance, do not rely on income statement only. You still need to see its balance sheet and cash flow statement to get the whole picture of your company situation. It needs an accounting or finance people to understand it, though. Also, feedback from marketing and sales people should be counted. From there, if you are the owner of the company, you can decide the future of your company and business.
Income Statement Models
In accounting terms, there are three different models of income statements. There are income statement for Service, Merchandise and Manufacturing companies. The most obvious difference between those threes are on their Cost of Goods Sold parts. Service company doesn’t have one while Manufacturing company has a more detail inventory and production item to be reported. In practical, they are almost similar. It depends on particular companies to define their business categories.
Using Microsoft Excel to simplify your spreadsheet tasks is not as difficult as you think. I learned how to use it in less than 24 hours and rely on internet to find the solution if I got stuck. I am not an Excel expert, but here are all useful spreadsheets I have collected and created.