Income Statement Template (Excel)

What is in this template

One sheet called Income Statement plus a How to use tab. It is a monthly profit and loss report for a small business with a column for each month and a year total.

Income Statement

Blue cells are inputs. Revenue has three lines, cost of goods sold has two, operating expenses have six, and interest and income tax sit below. Formulas work out total revenue, total cost of goods sold, gross profit, gross margin, total operating expenses, operating income, net income and net profit margin for each month and for the year. A chart at the bottom compares revenue with net income by month. Data labels on the chart are off.

How to use

Steps with a link back to the sheet.

The sample data

The sample is a made-up home services business. For the year, revenue is $230,600 and cost of goods sold is $121,100, so gross profit is $109,500, a margin of 47.5 percent. Operating expenses are $75,220, which gives operating income of $34,280. After $1,680 of interest and $9,820 of income tax, net income is $22,780, a net profit margin of 9.9 percent.

How to use it

1. Type the company name.
2. Enter revenue for each month in the blue cells.
3. Enter cost of goods sold and operating expenses.
4. Enter interest and income tax as numbers.
5. Read gross profit, operating income and net income at the bottom of each column.

Tips

• Use the same categories every month so the columns can be compared.
• Insert new rows inside a block and check that the total formula includes them.
• Compare gross margin month to month. A sudden drop shows a cost problem.
• Ask your accountant how tax should be recorded. Here it is an input.

This is a management report for your own use. It does not calculate tax and is not a filed financial statement.

Frequently asked questions

More free tools: All free calculators · Gross margin calculator · Small business budget template · How to read an income statement