Read Download an example of an Excel warehouse stock report here Methods and Stages in Making an Income Statement income journal The following are the general stages in making an income statement Collect financial data Collect all necessary financial information including revenue data and all types of costs relat to your business operations. This data can come from various sources such as lgers sales records invoices and other proof of transactions. Identify income Determine all sources of income earn during a certain period.
This includes income from
Sales of products or services interest income Russia Telegram Number Data royalties dividends and other sources of income. Categorize costs Separate all costs relat to business operations into appropriate categories. For example the cost of goods sold employee salaries and benefits utility costs administrative costs and other costs. Also read Example of a Cafe Business Financial Report Calculate total income Add up all the revenues identifi from step one. This will be the total revenue of your business over a certain period of time. Calculate total costs Add up all the categoriz costs from step three. This will be the total costs incurr by your business over a certain period of time.
Calculate gross profit
Subtract total costs from total Qatar Phone Number List revenue to calculate gross profit. This is the profit or loss earn from business operations before considering nonoperating costs. Identify nonoperating income Identify income that does not come from your primary business operations such as interest or investment income. Identify nonoperating costs Identify all costs that are not relat to primary business operations such as loan interest costs or losses on asset sales. income Subtract total nonoperating expenses from total nonoperating income then add or subtract this amount from gross profit to get net profit or net loss.