Function-based income statement | Free template

Function-based income statement is a free template that you can use to prepare a profit statement for your business where costs are divided into functions. A function is a specific operation performed within the company such as sales, administration and research.

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 a function-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 costs, where revenues represent the value of services rendered and the costs represent the value of resources used. A function-based income includes multiple performance measures to provide a good overview of the profit structure.

In a function-based income statement is "Gross income" calculated as net sales less cost of goods sold. In a function-based income statement are the company's costs divided into functions such as sales, administration and research & development. One should not feel limited to the headers in this template, but these can be changed to better reflect income and expenses in a particular company.

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

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Tags: bookkeeping