If you are searching for income statement examples and income statement templates, I’ve got you covered. I’m going to share with you 5 free income statements you can use for your own business.
But first, before I show you them, let’s exactly define what an income statement is.
Income statement definition: An income statement is a financial statement that measures a company’s performance over a specific period of time. It summarizes how to business generates revenue and incurs expenses over this period of time. The main point of an income statement is to see if there is a net gain or net loss for the financial period in question.
If you are a small business, you can easily calculate your own income statement. Getting a professional to do this work for you is perfectly fine as well. You’ll likely find your small business is small enough that you can manage this on your own.
Below are 5 income statement templates all in Excel format. They are blank and are great examples of what a proper income statement should look like. They more or less all do the same thing. The nice thing is that they are all free and easily downloadable to your computer for you to fill out.
5 Example Income Statement Templates
1. Tidy Forms
TidyForms offers many different types if income statement templates, which is why I always like going to them when I’m looking for spreadsheets and templates of anything. They have yearly income statement templates, income statement, multi step income statement template, and sample balance sheets as well as income statements. I’d say, overall, Tidy Forms has one of the best looking templates out of the 5 free ones I am listing here.
2. SME Tool Kit
SME Tools offers a very simple and useful template for your income statements. There isn’t anything fancy here. It’s just a simple form that is easy to read and understand. It has the basic things all income statements need and not much more. When you download it, just make sure to navigate the bottom Excel tabs to get to the actual income statement part.
Quickbooks has long offered many great tools for business and personal matters. Even their free stuff is pretty awesome. I really like this income statement template they have, because everything is on one page and you get a better picture of everything. It’s all about how it’s displayed here. I highly recommend using this one if you are looking for an excellent all in one template.
This income statement template is a basic one that will get the job done as well. You’ll be able to calculate things like revenue, loss, expenses, etc. You can use this income statement to calculate for various periods, such as monthly, quarterly, and yearly.
Vertex has long made simple and effective templates. Their income statement template here is no exception. As you can see from the picture above, it’s a good looking income statement with the main headlines of revenue, expenses, and below the line.
This particular income statement is actually split into two. It was designed for a small business owner or for your accountant. It actually contains two income statements. You will find them on a tab at the bottom of the Excel document when you download it. The first income statement is the simple one, where it’s a one step process. The revenue and expenses are lumped together.
The second income statement worksheet is a multi step income statement which will of course calculate more things, such as gross profit and operating income.
Overall, this one would be one of my go-to income worksheets if you are having a hard time deciding which one you want to use. I really like the idea that you get two income statements – a basic one and a more complete one.
Income Statement Knowledge
I just wanted to share some income statement financial essential information. There are a few really important definitions to go through, and I wanted to talk about them. They are revenue, expenses, operating income, income from continuing operations, and below the line items.
Revenue: Revenue is the money you generate by selling something or providing a service, and even earning interest on an investment. Basically, it’s any money your business generates.
Business Expenses: This is the cost of running your company. It’s the cost you have to pay to operate your business. For example, paying salaries, insurance, accounting fees, taxes, supplies, and rent.
Operating Income: This is your gross profit minus operating expenses. It is the money your business makes after covering all your expenses.
Income From Continuing Operations: This is calculated as operating income minus interest expenses and income taxes.
Below The Line Items: These are items that aren’t expected to occur again in the future, hence “below the line”. For example, if your company generates income from a discontinued operation, and you aren’t expecting to generate this same revenue in the future, it would be considered a below the line item.