Log In Income statement template – free download
FreshBooks income statement templates are a quick and easy solution when you need a simple, efficient income report template. Download the template or try FreshBooks accounting software for free.
What is an income statement?
An income statement, also known as a profit-and-loss (P&L) statement, is a core financial document that provides information about a company’s revenues, expenses, and profits over a specific period.
This document plays an important role in helping small businesses assess their financial performance and make informed decisions for the future. It’s a key indicator of the health of the company, its profitability, and the efficiency of business operations, allowing managers, owners, and shareholders to assess future cash flows.
How do I create an income statement?
To create an income statement, you’ll need to:
Choose a format
Choose the income statement format—spreadsheet or PDF—that you’re most comfortable with.
Download your template
Next, download the free template from FreshBooks to your desktop computer, laptop, or mobile device.
Enter revenue
Fill in the revenue section of the income template with your revenue numbers. This is the amount of money your business has earned before any expenses are deducted (gross amount).
Enter expenses
Add your operating expenses to the appropriate spaces. These are all costs your business incurs during day-to-day operations to generate income like payroll, advertising, depreciation, federal income tax, and interest paid to lenders.
Calculate net income
Input your net income using the following formula: Net Income = Total Revenue – Total Expenses.
Determine profitability
Your template will show the net income as positive if your business is profitable, and if it’s in the negative, your business is operating at a loss.
Download income statement template
Whether you prefer to work on your income statement in a spreadsheet or as a PDF, FreshBooks templates are easy to use and customizable to fit your business needs. If you’re searching for a more efficient way to create a small business income statement, download the FreshBooks free income statement template as a spreadsheet or PDF and start using it right away.
Income statement format
The major components of an income statement for small business are:
1. Revenue
Your revenue is all the gross income that was generated by your business from your normal day-to-day operations, like the sale of goods and services.
2. Cost of goods sold
The cost of goods sold (COGS) is the direct cost of production, including inventory, all raw materials, and labor that went into creating the product. For service business, COGS is the cost of providing services to customers.
3. Operating expenses
Operating expenses (OpEx) include all the money your business needs to pay to stay in operation. This includes employee wages, office supplies, depreciation, rent, equipment repairs, and more.
4. Operating profit (loss)
Operating profit or loss is the net income from the business’s core operations before interest, taxes, and gains and losses incurred not in the ordinary course of business.
Additional accounting templates
Profit and loss statement template
Use our profit and loss statement template for a summary of all the revenues and expenses over a specific amount of time, showing business profitability within that period.
Expense report template
Business owners and employees can use our expense report template to track business spending and list purchases made on behalf of the company.
Simple balance sheet template
Download our simple balance sheet template for a snapshot of your organization’s financial position at a point in time. It includes the company’s assets, liabilities, and stockholders’ equity.
General ledger template
Use our general ledger template for a business’s detailed financial transaction record showing assets, liabilities, expenses, and revenue organized by account. Every transaction is recorded using the double-entry bookkeeping method.
Billing statement template
Our billing statement template is a document you can fill in and send out to clients. It summarizes all transactions they’ve done with your business and any outstanding debts they owe.
Bank reconciliation template
Download our bank reconciliation statement template to compare your company’s bank transactions to your accounting records to ensure there are no discrepancies.
Income statement template vs. FreshBooks accounting software
Features
Free income sheet template
FreshBooks accounting software
Mobile access
Downloadable templates
Pre-designed templates
Automated data entry
No, manual entry
Automated calculations
Manual formula creation
Cloud data storage
Limited
Scalability
Difficult
Automatic recurring reports
FreshBooks accounting software takes your small business finances to the next level with simplified tracking and management, strong global client support, and professional project management tools that make your day-to-day operations more convenient. From double-entry accounting reports to automated invoicing, FreshBooks gives you the tools you need to manage and grow your business from anywhere.
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Helpful resources for your business
Need tips to improve your invoicing skills and knowledge? Want to learn more about our accounting software? Find helpful articles and resources below, including information about creating and sending invoices, advice on growing your business, and accounting tips.
How To Prepare An Income Statement
Balance Sheet vs Income Statement: Differences With Examples
How to Create a Multi-Step Income Statement: A Guide to In-Depth Financial Reporting
How to Create a Single-Step Income Statement and Simplify Your Small Business Accounting
Frequently Asked Questions
Use the formula Revenues – Expenses = Net Income. If the net income is positive, the business has been profitable within the time period captured in the statement. If it’s negative, the business is running at a loss.
The most important items to include on your income statement are revenues, expenses, gains, and losses. This information tells you what you need to know about the company’s financial performance during a period.
The simplest way to create an income statement is to use a FreshBooks business income statement template. Just input the relevant financial details, and your statement will be ready in minutes.
To calculate profit on an income statement, subtract your total expenses from your total revenue. If your net income amount is positive, you’ve generated a profit. If it’s negative, you’re operating at a loss.
While an income statement template is free to use, it’s not much more than a basic form. FreshBooks, on the other hand, is an accounting software providing more features than any income statement templates could, including invoicing, billings, payments, reporting, and more.
FreshBooks cloud accounting software offers mobile invoicing from anywhere, payments, reporting, estimates, proposals, time and mileage tracking, and bank reconciliation, amongst many other features.