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. Present it 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 the income statement as Profit and Loss Statement, Revenue Statement, Operating Expenses/Statement, or simply PnL. This post shows you how to easily calculate it using an automated Income statement template.

Why you should use an income statement template

Your finances are undoubtedly best managed in spreadsheets. However, it requires lots of manual work and potential data loss with copy-pasting. We, therefore, created a template for you to visualize and report financial data.

Income statements are used to calculate and pay taxes to your local authorities. But also for securing financing and measuring the performance of a company. Normally, Small to Medium Businesses (SMBs) need to devote a lot of money and time to the process. To sum up the process, they input data into accounting software or spend time collecting all their information and sending to the external accountants. And on top of that wait until the accountant has time to process them. With an easily automated Income statement template, you 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, therefore, becomes a simpler process.

Let’s get you started

Step 1. Install the income statement template

Install the automated Income statement template by clicking the button below. Login using your Google account. Simultaneously, we create your Sheetgo account once the authorization step is completed. After that, click on the ‘Use Template’ button and install the template.

Sheetgo now automatically creates the system, that exists of two input spreadsheets “Income Inputs” and “Expenditures Inputs”, and one master file “Automated Income Statement”.

Example

workflow of income statement showing connections between spreadsheets

Step 2. Open all spreadsheets

Click on all 3 spreadsheet icons to open and start using the template. The two input spreadsheets “Income Inputs” and “Expenditures Inputs” connect to the master spreadsheet “Automated Income Statement”. To illustrate this Sheetgo connection, take a look at the Network view in the picture above.

Step 3. Fill out the information

Inside the “Income Inputs” and “Expenditures Inputs” spreadsheets, there are instructions on how to use the template. Overwrite the sample data in the “Input” tabs of each spreadsheet with your own information.

Example

automated income statement template example

Step 4. Configure the template

Fill out all your Income and Expenses data. After that, go back to the Sheetgo Web Application and click on the play button ‘Run workflow’. As a result, the connection between your input spreadsheets and the “Automated Income Statement” spreadsheet automatically updates. Inside the master spreadsheet, you then find an overview of your Income and Expenses separately. In addition, you have an “Income Statement Monthly”  tab where you can easily monitor your Income Statement.

Example

automated-income-statement-template-for-google-sheets

Awesome, you did it! 🙂

Congrats, you 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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