What is an income statement?

The income statement is one of the three main Financial Statements that a company must maintain. It summarizes your revenues and expenses over a period of time. It differs from a Cash Flow Statement in that it is based on the accrual of expenses and revenues for accounting purposes instead of the payment. It is frequently presented to managers and investors to communicate the profit or loss during a certain period (different from a balance sheet which summarizes your assets and liabilities). You may also know a Profit and Loss Statement as Profit and Loss Account, Income Statement, Revenue Statement, Operating Expenses/Statement, or simply PnL.

Why you should have your Income Statement automated in Google Sheets

Your finances are undoubtedly best managed in spreadsheets. However, it can require lots of manual work, and potential data loss with copy-pasting. We, therefore, created a plug and play system in the shape of a Template for you to visualize and report financial data.

Income statements are used to calculate and pay taxes to your local authorities and are used for securing financing and measuring the performance of a company. Normally, Small to Medium Businesses (SMBs) need to devote money and time to input data into accounting software or spend time collecting all their information and sending to the external accountants, and wait until the accountant has time to process them. With an easily automated Income Statement Template, you can have a daily view of your Income and Expenses. Calculating profit margins, generating reports for investors and preparing income statements at the end of the year becomes simpler and painless processes.

Let’s get you started

Step 1. Install the template

Install the Automated Income Statement Template by clicking the button below. You will be asked to log in using your Google account. This will automatically create your Sheetgo account as well. After doing so, click on the ‘Use Template’ button to install the template.

Sheetgo has now automatically created the system by connecting the “Income Inputs” and “Expenditures Inputs” spreadsheets to the master file “Automated Income Statement”.

Example

Step 2. Open all spreadsheets

Open all 3 spreadsheets by clicking on their icons as seen in the Network View above. The two input spreadsheets “Income Inputs” and “Expenditures Inputs” are connected to the master spreadsheet “Automated Income Statement” using a Sheetgo connection.

Step 3. Fill out the information

Inside the “Income Inputs” and “Expenditures Inputs” spreadsheets, you will find instructions on how to use the template. Overwrite the sample data, that is provided in the “Input” tabs of each spreadsheet, with your own information.

Example

Step 4. Configure the template

After filling out all your Income and Expenses data, go back to the Sheetgo Web Application to update the connection between your Classes spreadsheets and the “Automated Income Statement” spreadsheet. Do so by clicking on the play button ‘Run workflow’. Inside the master spreadsheet, you will find an overview of your Income and Expenses separately, but also an “Income Statement Monthly”  tab where you can easily monitor your Income Statement.

Example

Awesome, you did it! 🙂

Congrats, you’ve configured your Automated Income Statement Template using Google Sheets. If you are in need of a Cash Flow Template, we’ve got you covered! Click here to install our Cash Flow Template.

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