Income statement format is an essential layout for documenting all the expenses and revenues in a proper order. This kind of statement is framed by adding up all revenues and subtracting all the expenses in order to give the owner a clear picture of net income.
Sample Income Statement Format
Name of the business/ person _____________________
Date of presenting the statement __________________________
First Paragraph: Generally, an income statement is prepared for a specific period of time either on monthly, quarterly or annual basis. Therefore, the first paragraph must enlist the period for which the statement is being prepared and detailing the process of income. This gives a clear picture regarding the mode of income and the purpose of the income statement so that it could be presented incase of any future contrariety.
Second Paragraph: This is one of the important paragraphs where one should summarize the revenues and expenses of the owner. This helps to simplify the investment analysis process and it becomes easier for the concerned person to make crucial decisions in investment related issues. Infact income statements are being used for corporate financial reporting as well. Therefore, one should mention the important terminologies and key figures in order to frame the statement comprehensively and with a professional approach.
Third Paragraph: The third paragraph highly emphasize on making the statement accessible and useful for the person concern. Therefore, it must conclude or summarize the entire income statement. Even it effectively highlights the net income of the concern person or company after all additions and subtractions.