Income statement template (Excel)

How to use the template

Enter revenue by type, the direct costs of delivering it, and operating expenses by category for the period. Gross profit, gross margin, operating income and net income calculate themselves, and the prior-period column shows the change. Overwrite the sample figures; they are there so you can see the formulas work.

Use the same categories every month. An income statement is only useful when this month lines up with last month.

What each section means

Revenue is what you earned in the period, whether or not it was paid. Cost of sales is what those sales directly cost. Gross profit is the difference, and gross margin as a percentage is the first number a lender or investor looks at. Operating expenses are the cost of running the business regardless of volume. Net income is what is left, before owner draws.