Income statement also known as financial statement is a very important part of a company’s performance report over a specific time period. This report provide detailed data of revenues which tells us whether our company is making profit for us or going towards loss. The main goal of the income statement is to show how much profit a company gained over a specific time period so that company can determine its major revenues it has earned.
This report is also important for the investors to get a full detailed information from sales to profits, data of revenues to judge the company’s condition before investing in that company. First we choose a reporting period. Business organizations choose to create income statement report on quarterly, annual or monthly basis. This report in a specific time helps you to make business decisions to understand the company’s financial position to make it more efficient and profitable.
Provides detailed information on revenues
Database for Investor Analysis
Monitor the profitability of the company over time
Keep book-keeping in-house for longer
Prevent errors, losses and frauds
Helps the companies analyze their expenses
