Free income statement template

This template comes with an income statement example and how-to guide that shows how to fill one out. We’ve already set up the format of the income statement for you. In short, you’ll add in your revenue then subtract your expenses to find out your profit (or loss).

An income statement will show how much money a business is making. It can also help you calculate profit margins, which show how good the business is at converting revenue into profits.

Income statements can be tricky. Missing off a cost or miscalculating income can really throw out your results. It’s a good idea to connect with an accountant or bookkeeper when filling out a template like this. You can find one in our directory.

Go to the download section on this page, fill in your details and we’ll send you an email with the template as a downloadable PDF. We’ll also send a guide on how to use it with a sample income statement. You’ll need to have a PDF reader installed to use the template.

Record your income and expenses in line with your accounting method. With the accrual method, you record revenue or expenses when you earn the money or incur the expense, but with the cash basis method, you don't record anything until the cash actually exchanges hands. You must be consistent about using one or the other if you want to create accurate reports.

Income statements cover specific periods of time such as weeks, months, quarters, or years. Consider looking at a variety of time periods to see how your business does during different intervals – for example, an annual report will show how your business did over a year, while quarterly and monthly income statements can help track seasonal trends. Make sure to use consistent date ranges when comparing different periods.

List all of your business's revenue from different sources in the designated fields, and the template will automatically calculate a total. Next, list your cost of sales and all of your fixed and variable expenses in their designated fields. Once you've entered everything, the template will subtract expenses from revenue to calculate your net profit before tax.

Your net profit before tax will be displayed at the bottom of the template. Use this number and the other details on your report to make informed decisions for your business. Understanding the profitability of your business at different time periods can help you create budgets and make smart financial decisions.

The final row of this income statement template will display the net profit before tax, which can be used to help calculate a business’s tax bill. This assumes that all the expenses listed on the income statement are deductible. Your tax office has details to help you understand what qualifies as being deductible and an accountant can also guide you.

Once you’ve created the statement, it's time to print and/or save it. You can use past income statements to track the history of your business's finances and compare with new reports to see how your business is improving.

Want to learn more about how to understand your income statement or check you're in line with local regulations? An accountant or bookkeeper can help you complete your income statement template and avoid mistakes.