Looking to improve your business? Review your company profitability today with a simple income statement. Spot growth opportunities, cut costs, and build a better business.
Free income statement
What is an income statement?
An income statement is a key financial document used by business owners and investors to analyse and improve performance. Income statements are also referred to as profit and loss statements, P&Ls, or statements of earnings. Whatever you call it, your income statement is used to show your business income versus expenses – and help calculate profitability.
Creating an income statement for your business allows you to review performance over time, and spot opportunities to cut costs and boost profits. Use your income statement alongside your Wise for business account to save time and money when connecting with suppliers and customers abroad.
Download your free income statement template, and get started today.
How to prepare an income statement?
1. Choose the time period & gather the figures you’ll need
2. Add sales or revenue information
3. Enter expense information
4. Calculate gross profit and operating profit
5. Add income before tax, and then tax information
6. Complete net profit or loss - the bottom line
Choose and download an income statement template
Basic income statement
Traditional income statement
Multi step income statement
How to fill in the income statement sample
1. Add revenue
2. Enter expenses
3. Calculate net profit
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Income statement formula
Income statements can provide rich insight into any business. However, the primary aim of any income statement is to show net profit over the time period. Here’s the basic income statement calculation:
Total Revenues – Total Expenses = Net Income
If your total revenues are higher than your total expenses, your business has made a profit. If your expenses were higher than your income, you’ve made a loss.
Income statements are most useful as a tool for comparing performance over time. You can see how your business performance changes from month to month, and predict future profitability based on your data.