Type of Income Statement Template That You Need to Know
One of the three financial statements used by the companies is an income statement. It used by small to large scale business. When you start using the income statement, it might be looking too much, but you don’t need to worry. Because there is some part which very valuable for the businesses and it will be very beneficial. If you use the balance sheet, income statement, and statement of cash flow together, it will show you clear data of financial status a company. There is the plenty type of income statement template that you can use, but before you choose one of them, you need to know what are they. So you can pick one who fits for your need.
Income Statement Types
Basically, an income statement template is made to track both the income and expenses of a person or company. But it has several types, there are;
1. Income Statement in Basic Type
The first type of our income statement template is the most basic yet simple ones. It only contains the expenses, income, and net or profit loss. if you are holding a small business, this income statement is perfect for you. Even it is pretty simple, it is enough to make a report of your businesses. It is also good for you who want to make an income statement to review your own financial status.
2. Income Statement in Single-Step
This income statement looks pretty similar to the basic ones. But it contains the list of all revenues which makes it a little bit different from the basic type. The revenues also followed by the list of expenses, along with loss and net profit as the item of the closing line. So this income statement only provides a piece of general information about the overview of a company. The single-step income statement is most;y used by both small and big companies.
3. Income Statement in Multi-Step
There is something that makes the multi-step income statement is different than the single-step income statement. The multi-step income statement contains a more complex form than the single ones. Then it also gives us more details overview of a company’s financial position. Along with this template the statement, non-operating, and operating activities are listed in separated rows.
4. Income Statement in Pro forma
If you are looking for the income statement which provides future possibilities and projections, this type might be suitable for you. The Pro forma income statement mostly used by the companies to forecast the possibilities that may happen and prepare anticipation for those problems. It is very important for big companies, especially the ones who want the merger or rebranding their companies.
5. CVP type of Income Statement
CVP is an abbreviation of Cost-Volume-Profit. This income statement is a financial statement that used to analyze the profitability of production. It mostly used for analyzing the production in various filed. The format of this income statement is different, depends on the need of a company. But it typically contains contribution margins, revenue, fixed, and variable expenses,
Beside of five income statement type above, there is much other income statement template that you can use. But make sure you choose it wisely so it will provide you the best result.