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 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 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!

Services that we will be used to set up your template are:

  • Google Sheets
  • Sheetgo

Instructions

Step 1. Copy the Template Sheets

Start by clicking 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.

  1. Income Inputs Template
  2. Expenditures template
  3. Profit and Loss (P&L) Template

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 P&L Template in Google Sheets.

Step 3. Configure the PnL Template

3.1 Connecting your Income Inputs Spreadsheet to the Template

  1. Inside the “3. Profit and Loss” spreadsheet, in the menu, click on ‘Add-ons‘ > ‘Sheetgo‘ > ‘Start‘.
  2. Hover over the green ‘+‘ button and choose the ‘Import data‘ option.
  3. Click on the ‘Select file(s)‘ button to select the file “Income Inputs Spreadsheet”.
  4. Make sure to import the data from the “Summary per month” tab.
  5. Then, we arrive at the ‘Settings‘ tab where you have to rename the connection to “Income“.
  6. Also in the Settings tab, enable the ‘Transfer formatting‘ button.
  7. Finally, click on the ‘SAVE CONNECTION‘ button to establish a connection with the Income Inputs.

3.2 Connecting your Expenditures Spreadsheet to the Template

  1. Inside the “3. Profit and Loss” spreadsheet, in the menu, click on ‘Add-ons‘ > ‘Sheetgo‘ > ‘Start‘.
  2. Hover over the green ‘+‘ button and choose the ‘Import data‘ option.
  3. Click on the ‘Select file(s)‘ button to select the file “Expenditures Spreadsheet”.
  4. Make sure to import the data coming from the“Summary per month” tab.
  5. Then, we arrive at the ‘Settings‘ tab where you have to rename the connection to “Expenditures“.
  6. Also in the Settings tab, enable the ‘Transfer formatting‘ button.
  7. Finally, click on the ‘SAVE CONNECTION‘ button to establish a connection with the Expenditures.

3.3 Updating the Profit and Loss Statement Spreadsheet

Every time you access the “Profit and Loss Statement” 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. To automate these updates to hourly, daily, weekly or monthly, simply click on the 3 dots next to the connection names to edit the ‘Automatic Updates‘ section inside the ‘Settings’ tab.

Awesome, you did it! 🙂

Congrats, you’ve configured your Google Sheets Profit and Loss 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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