Even if you aren’t a numbers person by ignoring this statement you don’t have the data on whether the business is profitable or not and are potentially overlooking opportunities to make more money. When running a business, it’s important to evaluate the profitability of your business.
It is also the first one you need to build because the rest of the basic financial statements are partially built off of it. The Income Statement which is often referred to as a Profit and Loss Statement or P&L Statement, is probably the most commonly used financial statement and is also one of the easiest of the three primary financial statements ( Income Statement, Cash Flow Statement and Balance Sheet) to read and fill out. Do you need to see how to format an income statement, looking for an example or want to download a free sample template? Everything you need to know about an income statement is right here!
