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TEMPLATE

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Track your business performance and understand your profitability. Built in Google Sheets to give you a clear view of your revenue, expenses, and bottom line for a specific period.

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Your income statement shows:

Total revenue earned during the period

An income statement shows how much money your business earns and spends during a specific period. It’s one of the three core financial statements (alongside your balance sheet and cash flow statement) and gives a clear view of profitability.

Whether you call it a profit and loss statement (P&L) or an earnings report, it answers the key question: "Is my business making a profit?”

Successful businesses review their income statement regularly to monitor profitability, prepare for taxes, and make smarter financial decisions.

All expenses incurred to generate that revenue

Whether you’re operating at a profit or a loss

How each revenue source contributes

Where your largest expenses occur

Performance compared to past periods

Areas that may need attention

The costs of running your business, from supplies to salaries.  

Direct Costs:

• Materials and inventory
• Direct labor
• Shipping and delivery
• Sales commissions

Operating Expenses:

• Rent and utilities
• Employee salaries
• Marketing costs
• Office supplies
• Professional services

The money your business earns from selling products or services. 

Operating Revenue:

• Product or service sales
• Customer payments
• Subscription or consulting fees

Other Revenue:

• Interest income
• Rental or one-time income

The bottom line: your total profit or loss for the reporting period.

This simple formula gives you a snapshot of how your business is performing.

Example: 

Revenue: $50,000

Expenses: $30,000

Profit: $20,000

$50,000 (Revenue) – $30,000 (Expenses) = $20,000 (Profit)

If revenue is greater than expenses, you’re profitable. If expenses exceed revenue, it’s a loss.

1. Set up your categories in the chart of accounts sheet:

• List your income sources (product sales, services, consulting fees)
• Add your expense categories (rent, utilities, supplies, marketing costs)
• Customize items to match how your business operates

2. Enter your transactions

• Add each transaction on a separate row
• Include the date, description, amount, and select a category from the dropdown

3. Generate your statement

• Enter the beginning and ending dates of the reporting period
• The template automatically calculates totals for revenue, cost of goods sold, expenses, and net income
• View a clear summary of your business’s financial performance
• Share your Google Sheet with stakeholders or your accountant

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