personal monthly income statement template excel

There are several kinds of expenses that can help you understand better what is regarded as an expense and what is not.

A good example is paying the principal of a loan. It is important to note that not every payment that leaves the company is regarded as an expense. It is any form of liability incurred by the company and it needs to be included in the income statement even before the money is disbursed from the company’s account. In this case, what is reported as revenue is the surplus after subtracting what the asset’s value was to the company.Įxpenses refer to the money spent with the aim of creating revenue for the company. The last kind of revenue is one that comes from selling the company’s assets or other gains. But this is only one type of revenue called operating revenue.Īnother type is non-operating revenue which is obtained from sources like rent on subleased space or interest paid by people paying off loans given to them by businesses. As soon as your business provides the client with your services or goods, you need to report this as revenue in the income statement. In making the income statement, the revenue is reported when the business does its part, not when the client pays. The revenue is the money that the business receives from all sources. There are two elements involved in an income statement namely, revenue and expenses. In this article, we will discuss the elements involved in an income statement and will give you a step-by-step guide on how to draft it, and finally, will provide you with income statement templates that will ease the process. Regardless of the reason as to why you would like to make an income statement, it is more important to know how to make it perfect. Some lenders may even need statements from the past two years.

However, for loan applications, you will be required to provide an income statement of an annual period. Businesses have the freedom of choosing the time period as required. It can be monthly, quarterly, or even annually. This statement is made for a certain period of time, but this period needs to be specified. The best way to do this is by preparing an income statement.īy definition, an income statement is a document that contains all the information about the expenses and income of a business. To find out what these are, you need to keep track of your revenues and expenses. In business, the losses and profits are very important because they determine how well the business proceeds.

Personal monthly income statement template excel