Income Statement Sample
Free Business Planning Toolkit

Free income statement sample template and a business planning course for aspiring leaders.

In the following information, you'll learn the importance of the Income Statement section of a business plan.

The income statement sample provides a manager or potential investor with the meat of what they are interested in, namely revenue, net income and earnings per share.

The income statement holds a vast amount of key information. It shows a firm’s revenues and expenses along with taxes associated with those expenses for a specific period of time.

Whereas the balance sheet is organized in terms of “left and right”, the income statement reads “top-down”.

Site Testimonial   "Thanks for some very helpful tools. I am the newly appointed Customer Service Team facilitator at my company, and I was at a loss for fun warm-up tools. So glad I found them on this site!"   - Francesca Sam-Sin-Nowlin

When prepared the income statement sample for the business planning process, you should realize that potential investors are extremely interested in profits. After all, these people’s business is to make money so they will be very specific in their questions to you about how you intend to earn your income and also exactly how you intend to report it.

Our income statement sample lists the revenue and expenses from top to bottom in order to come to the bottom-line net profit number. Specifically, you read the incomes statement in the following order:

• Revenue = sales proceeds from products or services sold to customers.
• (minus) Cost of Goods Sold = expenses that are due to the cost of materials used to create the product sold.
• (equals) Gross Margin = this is another name for gross profit, simply a reflection of revenue minus cost of goods sold.
• (minus) Operating Expenses = expenses not associated with cost of goods sold. Examples include salaries, advertising, maintenance expense and other.
• (equals) Net Income before Interest and Tax Expense = this reflects net income prior to deducting both interest expense and tax expense.
• (minus) Interest Expense = expenses associated with the interest paid on payment made outstanding company debt.
• (minus) Income Tax Expense = expenses associated with the taxes paid to federal and state agencies.
• (equals) Net Income = this reflects the final profit made after all expenses are taken into account.

It should be noted that depending on the type of business, the format of the income statement sample may vary somewhat. Some businesses choose to break down operating expenses into many sub-categories and some may list out the depreciation expense as its own separate line item.

Regardless, of how many categories are used, all expenses must be taken into account prior to listing the net profit.

Learn more about the income statement sample template and the Income Statement Review, by utilizing these free sample business plans.

Countless number of professional men without any special ability in business has succeeded financially by means of a courteous manner. Many commercial businesses owe their success in large part to their ability in selecting men and women sales representatives with pleasing manners and personalities.

As you build your business plan you should be certain to mention the strengths of your key employees. In addition, you want to provide your strategy for choosing new hires into the organization going forward.

In building up your business you should choose your employees with great analysis and careful thought. Courtesy is one of the key essentials in any service or sales oriented business.

Rest assured, all things being equal, the employee who is selected for advancement is the one with good manners, a fine graceful disposition and a confident presence. These qualities are the best kind of capital, even better than quick one-time profits on the income statement.

Courtesy is to business and society what oil is to machinery. It makes things run smoothly, for it eliminates the friction and the nerve-racking noise.

Distinguished business leaders of the past did not enjoy the convenience of what technology provides us today. Don't miss any key information to the income statement sample template provided in the business planning course - ensure your success using the only business planning product we recommend.

Receive your free income statement sample template using the following link:

TO RECEIVE THIS FREE TOOL: Subscribe to our FREE monthly newsletter. Instructions to quickly access ALL of our free leadership tools will immediately follow.

» Cash Flow Statement Review
Receive a free sample cash flow statement template, along with multiple examples of business plans complete with cash flow statements.

» PART X    The Appendix
Using the business free plan template, you will learn to provide all supporting documentation in the appendix of the business plan.

» CONCLUSION    Never-To-End Business Planning
Why consider business plan review software? Business owners should never stop planning for their business. Today, technology has advanced so that business owner's can continue to plan effectively with minimal effort.

We're always seeking new income statement sample tools and resource ideas for our readers. Do you have a suggestion for business planning activities that you would be willing to share? If so, we encourage you to provide your own helpful hints and tips here.

A FEW QUICK REMINDERS: Add "Leadership Tools and News!" BLOG: Add BLOG To Homepage: or or Be sure to bookmark this page for easy future reference. Did you find this page helpful? Please consider making a donation to help support our mission.