Income Statement Template
An income statement template is a pre-structured document or tool used to organize and report a company’s financial performance over a specified period. The income statement, also known as a profit and loss (P&L) statement, statement of earnings, or statement of operations, presents a company’s revenues, costs, expenses, and net income or net loss.
Here’s a basic example of an income statement template:
Company Name
Income Statement
For the Year Ended December 31, 2023
Revenues:
Sales Revenue: $________
Cost of Goods Sold: $________
_________________________________________________________
Gross Profit (Sales Revenue - Cost of Goods Sold): $________
Operating Expenses:
Selling, General and Administrative Expenses: $________
Depreciation Expense: $________
Research and Development Expenses: $________
Other Expenses: $________
_________________________________________________________
Total Operating Expenses: $________
Operating Income (Gross Profit - Total Operating Expenses): $________
Non-operating (or other) income and expenses:
Interest Expense: $________
Interest Income: $________
_________________________________________________________
Total Non-operating Income and Expenses: $________
Pre-tax Income (Operating Income + Non-operating Income and Expenses): $________
Income Tax Expense: $________
_________________________________________________________
Net Income (Pre-tax Income - Income Tax Expense): $________
In this template, you’d replace each $________ with the corresponding financial figure for your business for the time period in question. You can add or remove categories as necessary to suit your business’s particular needs, as long as it correctly represents your business’s revenue and expenses to show a clear picture of its profitability. This is a simplified template, real-world businesses may have a more complex income statement based on their operations, size, and industry.
Remember, an income statement template is merely a tool to help you organize and understand your company’s financial data. To make the most of it, you’ll need a solid understanding of accounting principles.
Example of an Income Statement Template
Let’s take a simplified example of an income statement for a hypothetical company named “ABC Enterprises” for the year ended December 31, 2023.
ABC Enterprises
Income Statement
For the Year Ended December 31, 2023
Revenues:
Sales Revenue: $500,000
Cost of Goods Sold: $200,000
_________________________________________________________
Gross Profit (Sales Revenue - Cost of Goods Sold): $300,000
Operating Expenses:
Selling, General and Administrative Expenses: $50,000
Depreciation Expense: $20,000
Research and Development Expenses: $30,000
Other Expenses: $10,000
_________________________________________________________
Total Operating Expenses: $110,000
Operating Income (Gross Profit - Total Operating Expenses): $190,000
Non-operating (or other) income and expenses:
Interest Expense: $5,000
Interest Income: $1,000
_________________________________________________________
Total Non-operating Income and Expenses: $4,000
Pre-tax Income (Operating Income + Non-operating Income and Expenses): $186,000
Income Tax Expense (assume tax rate is 20%): $37,200
_________________________________________________________
Net Income (Pre-tax Income - Income Tax Expense): $148,800
This income statement example shows that ABC Enterprises earned $500,000 in revenue during 2023. After accounting for the cost of goods sold, operating expenses, non-operating income and expenses, and income tax, the company ended up with a net income of $148,800 for the year.
Please note that this is a simplified example. A real-world income statement may include additional line items, and the tax calculations can be more complicated due to different tax rates and regulations.
