What is the Income Statement Template?
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 Income Statement as 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 Business (SMBs) needs 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 Profit and Loss. Calculating profit margins, generating reports for investors and preparing income statements at the end of the year become simpler and painless processes.
Simple Technology to get this Sheet done!
The services that we will be used to set up your template are:
- Google Sheets
The following image illustrates how the template looks like.
Step 1. Copy the Template Sheets
Click on the links below and select “Make a Copy” and your copy will open in Google Sheets, and be automatically saved into your Google Drive.
Step 2. Install the Google Sheets add-on Sheetgo
Click here to install Sheetgo. Don’t worry, it´s a free add-on for Google Sheets to connect your spreadsheets, and much more! The add-on is necessary to connect and automate the spreadsheets to get your Income Statement Template in Google Sheets.
Step 3. Configure the Income Statement Template
3.1 Connecting your Income Inputs Spreadsheet to the Template
1. Inside the Income Inputs Spreadsheet, in the menu, click on add-ons > Sheetgo > Start. 2. Click on the green + button and select file “1 Income Inputs Spreadsheet”. 3. Select the tab “Income” 4. In settings, click on “enable transfer formatting” 5. Finally, we click on the “Save Connection” button.
3.2 Connecting your Expenditures Spreadsheet to the Template
1. Inside the Expenditures Spreadsheet, in the menu, click on add-ons > Sheetgo > Start. 2. Click on the green + button and select the file “2 Expenditures Spreadsheet”. 3. Select the tab “Expenditures” 4. In settings, click on “enable transfer formatting” 5. Finally, we click on the “Save Connection” button.
3.3 Updating the Profit and Loss Statement Spreadsheet
Inside the Profit and Loss (P&L) Spreadsheet, open the Sheetgo add-on. You will see the 2 connections that you’ve created. Simply click on the arrows within the Sheetgo add-on to bring the data from your Income and Expenditures to your Income Statement spreadsheet.
Awesome, you did it!
Congrats, you’ve configured your Google Sheets Profit and Loss Template using Google Sheets.
In need of a Cash Flow Template?
We’ve got you covered! Click here to install our Cash Flow Template.
Feel free to share your feedback or suggestions for new templates in the comments below, or click on the chat button below on your right! <3