Expense-based income statement | Free template

Expense-based income statement is a free template that you can use to prepare a profit statement for your business where expenses are divided into expense categories.

An income statement shall summarize a company's revenues and expenses during a fiscal year. An income statement can be either expense-based or function-based and a change of layout can only occur if there are special reasons with an explanation of the reasons given in a note. In an income statement are the amounts of the reporting period and the amounts for the previous comparative period, if available, stated.

This template for an expense-based income statement is complete according to the requirements for this type of income statement. An income statement will show a company's performance and resource consumption during a specific period. A company's overall performance is measured by the profit and this profit can be positive, a gain, or negative, a loss.

A company's performance is measured as income minus expenses, where revenues represent the value of services rendered and the costs represent the value of resources used. An expense-based income statement contains a number of income measurements to provide a good overview of the profit structure.

In an expense-based income statement are expenses divided into different expense categories such as raw materials and consumables, staff expenses, external expenses and depreciation. One should not feel limited to the headings in this statement, but these can be changed to better reflect income and expenses in that particular company.

You can use this template to create an expense-based income statement for any accounting period. Updated: 01/01/2015 | Created by All-templates.biz

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Tags: bookkeeping