30+ Free Income Statement Templates

An income statement, also called a profit and loss statement (P&L), is a financial report that shows a business’s revenue, expenses and resulting profit or loss over a set period, such as a month, quarter or year. Owners use it to see whether the business is making money, while lenders, investors and tax preparers ask for it when reviewing a loan, an investment or a tax return.

You’ll find 30+ income statement templates below, editable and free to download. The range includes a simple brief statement for small businesses, a company income statement, a comparative income statement that puts two periods side by side and a current-year annual version. For planning ahead, there are projected and pro forma income statement versions.

Use the same categories every period so results can be compared month to month. Have an accountant review any statement used for taxes or financing.

An income statement is one of three core financial statements. You can also check out our balance sheet templates, cash flow statement templates, and chart of accounts templates to organise the accounts behind each figure. You may also find our financial plan templates and billing statement templates useful.

Income Statement Templates

Simple Brief Income Statement Template

Exclusive Income Statement Template

Company’s Income Statement Template

Comparative Income Statement Template

Pro-Forma Income Statement Template

Current Year Annual Income Statement Template

Projected Income Statement Template

Company’s Simple Income Statement Template

Sample Income Statement Template

Formal Income Statement Template

Easy Income Statement Template

Income Statement Blank Format

Columnar Income Statement Template

Company’s Income Statement Template

Simple Income Statement Example

Detailed Income Statement Template

Company’s Income Statement Format

Elegant Income Statement Template

Personal Income Statement Template

Month Wise Income Statement Template

Exclusive Income Statement Template

Quarter Wise Income Statement Template

Benefits of an Income Statement

As mentioned earlier, an income statement provides valuable information to the stakeholders and owners of the business. Some of its benefits are listed below:

It is a complete document because it takes readers through all the events affecting revenues and expenses during a financial period. No other document provides this much detail on revenues and expenses.
It enables investors to easily analyze the financial strength and position of the business. Information such as net profit and earnings per share for the year is very important for investors when making future decisions.
An income statement serves as a benchmark for tracking the overall performance of a business. The most important measure of performance is profit. The income statement clearly shows the actual ‘profit’ figure by showing ‘profit before interest’, ‘profit after deducting interest and before tax’ and ‘profit after deducting tax’.
Along with other financial statements, the income statement is also used for forecasting and decision making. A projected income statement for any future period can easily be made by analyzing the data in existing income statements.
The income statement includes complete details of the tax expense for a particular period. Current tax and deferred tax are clearly shown, with amounts on the face of the statement, which makes the company’s tax reporting much easier.
If a business wants to borrow money for its operations, lenders usually ask to analyze its income statement. It shows them whether or not the business is in a position to repay the borrowed amount.
A comparative income statement helps in determining overall performance because it makes it easy to compare a company’s revenues, expenses, taxes and profits from one period to another.

Types of Income Statements

An income statement has many different types and formats. Some of them are:

Consolidated Income Statement

This type of income statement is made when a company is the parent of one or more other companies, called subsidiaries. A consolidated income statement is the income statement of the group as a whole.

Projected Income Statement

A projected income statement is used for decision making and budgeting. This type of income statement uses estimated figures rather than historical figures. Companies use such statements to compare actual performance with projected performance.

Comparative Income Statement

A comparative income statement is made with information from the current accounting year and the preceding year. One or more earlier years can also be used to make better comparisons of the company’s current performance. A comparative income statement can also be made for different months of an accounting period.

Absorption Costing Income Statement

This is the standard format for preparing an income statement. It is the format GAAP (Generally Accepted Accounting Principles) requires for external reporting. All manufacturing expenses, both fixed and variable, are treated as part of a product’s cost.

Marginal Costing Income Statement

This type of income statement is made by computing the contribution. Contribution is the profit left after deducting all variable expenses from revenue. To calculate net profit, all fixed costs are then deducted from the contribution. This means that to make a profit, the contribution must be greater than the fixed costs. If the contribution equals the fixed costs, the business is at its break-even point, where it makes neither a profit nor a loss.

Common Size Income Statement

This type of income statement shows how each separate item affects the company’s profitability. Along with the actual amounts, each item is also shown as a percentage of total sales.

CVP Income Statement

CVP (Cost Volume Profit) income statements are used to analyze a company’s profitability in different scenarios. The format can vary from company to company, but this type of statement typically includes revenue, fixed and variable expenses and contribution margins.

Single Step Income Statement

The single step income statement is the most common type of income statement. All revenues are listed together, and then all the business’s expenses for the period are deducted from revenue, giving a net profit or loss figure at the end. Because the income statements of larger companies are more complex and contain more items, single step income statements are mostly used by small businesses.

Preparing an Income Statement From Consistent Records

Choose a layout appropriate to the business and reporting period. An income statement summarizes revenue and expenses; it is not a statement of all cash received and paid. For an Excel-compatible version of the same reporting purpose, see WordNExcelTemplates’ profit and loss statement templates and use classifications consistent with your accounting records.

Set the period and use a consistent accounting basis.
Group revenue, direct costs and operating expenses using the relevant records.
Check calculations and review unusual entries with an appropriate adviser.

Worked Example

Illustration: revenue of 20,000 less direct costs of 8,000 gives gross profit of 12,000. Operating expenses of 7,000 leave 5,000 before other items and tax. The example shows the calculation structure, not a complete set of accounting requirements.

Common Mistakes to Avoid

Avoid recording owner funding as sales or assuming that loan repayments are all operating expenses. Reconcile figures to the supporting records and accounting treatment.

Related Templates

Frequently Asked Questions

Is net profit the same as the bank balance?

No. Timing, borrowing, asset purchases and other transactions can make cash and profit differ. Use a cash-flow statement and balance sheet alongside the income statement where appropriate.

Can I compare months with different classifications?

Reclassify consistently or explain the difference. Otherwise an apparent trend may result from changed categories rather than changed performance.