An Income Statement is a summary of an organisation's income and expenses over a period of time. It is vitally important because it tells its reader a story about what has happened over that period of time.
For external stakeholders, it can show an organisation's past performance and predict how it will perform in the future (e.g. looking for a loan to cover an unexpected situation). Internally, it is very important in dictating your strategy and spending.
You can:
- Measure your health against different operating periods
- Determine the profitability of each activity and your ability to continually cover those costs
compare line items and identify movement across different statement periods for trends
Download the template below, and for more guidance, read the how-to guide by clicking here Bookkeeping - Managing Your Daily Finances
