Costs include finished products, raw materials, labor, etc.
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Subtract the cost of goods sold (COGS). You may have more than one revenue stream. Start with sales revenue (physical products or services). Why monthly? Because one goal of an income statement is to keep a steady pulse on your business-to identify dips (or spikes!) when they affect a quarterly growth goal, not business solvency. The key components of an income statementĪn income statement is usually compiled monthly, with monthly numbers tallied for quarters and years. We’ll help you put together your first income statement. These are outliers-not reasons to be intimidated. Enron, infamously, conjured revenue from projections, made losses vanish from its books, and touted a too-good-to-be-true income statement that many believed for far too long. Other companies have exploited outsiders’ perception of corporate finance as a black box. 
(Apple, for example, made $32.3 billion in gross profit in Q2 2021.) Yet it’s a mystery to many entrepreneurs, even as public companies must publish the details of their income statements quarterly. It’s also called an “earnings statement” or a “profit-and-loss statement.” It answers the question, “How profitable is your business?” An income statement is the financial story of your business-a monthly, quarterly, or annual tally of revenue minus expenses.
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