Your business has been booming ever since you launched your new hair product. However, you have noticed in your income statement that the revenue was still the same as last month’s revenue. You pondered whatever happened to the money that you were supposed to have thanks to the increased popularity of the product. You hired an accountant to look at your financial records from income statements to cash receipts. The accountant looked at all the files and then went back to the income statements. The accountant had found some illegal nonwork-related expenses that one of the directors has incurred within the month.
What Is a Blank Income Statement?
Income statements are part of the overall financial documents that are relevant to a company since creditors and investors always aim most of their concerns toward the finances of companies. An employer must be mindful of the company’s financial records at all costs. If the employer does not fully comprehend financial documents such as income statements, he can hire an accountant to help him understand how finance works, and the accountant can help the employer solve any finance-related issues of the company.
The accountant is trained to compute and keep track of the revenues and expenses the company incurred. The frequency of the report depends on what type of financial statement the employer wants to conduct. May the rate of the status report be monthly or yearly. Income statements are much needed by an accountant for these files to help them give a precise summary of the revenues and expenses of the financial status of the company when the employer asks for a brief but detailed explanation of the company’s petty cash flow.
In this sense, income statements become legal proof of the company’s financial status. However, accountants must be careful when computing revenues and expenses. Some expenses might be personal expenses, and some revenues might also be fake.
5+ Blank Income Statement Sample Forms
Blank income statements are official and legal documents that need intense research when you want to create one. Here are six samples of blank income statement form samples that you can use as your references. Look and stare at each of the examples. See how each of the sample’s structure and content differ or resemble the other. Compare and contrast the examples. You might find something different and similar about each of the sample’s content and structure.
1. Sample Income Statement Form
2. Generic Blank Income Statement Form
3. Generic Blank Income Statement Sample Form
4. Income Statement Sample Form
5. Generic Sample Blank Income Statement
6. Sample Income Statement Generic Form
Types of Blank Income Statements
According to smallbusiness.chron.com, there are two types of income statements—single-step income statement and double-step income statement. Both of the two types of income statements are relevant but have different ways of calculating numbers. Here are the two types of income statement along with a brief description of how each differ from one another.
1. Single-Step Income Statement
A sing-step income statement is a direct and simple type of income statement. Prepapring this type of income statement, you must separate the items under revenues and the items under sample expenses. Subtract the total expenses to the total revenue to get the total net income. Here is the equation for the single-step income statement.
Net Income = (Revenues + Gains) – (Expenses + Losses)
The advantage of this type of income statement is that it is easy to prepare since this type requires you fewer calculations. This type is also easy to read since the main focus is acquiring the total net income and nothing else.
2. Multi-Step Income Statement
A multi-step income statement is a three-step process of getting an accurate total net income. You must separate operational and non-operational revenues and expenses. Listed below are the three steps process of acquiring total net income.
1. Gross Profit = Net Sales – Cost of Goods Sold
2. Operating Income = Gross Profit – Operating Expenses
3. Net Income = Operating Income + Non-Operating Items
The advantage of a multi-step income statement is that this type is more detailed. This type offers a complete breakdown of operating and non-operating revenues and expenses for an insightful outlook on the company’s financial status. This type also looks into gross profit, which is an important part that needs assessment since gross profit deals with the costs associated with the company’s production—giving services and making products.
How to Create a Blank Income Statement
Here are a few steps and tips on how to create an effective blank income statement. Read the tips carefully when you will be creating a blank income statement. The order of the guide is not necessarily chronological, and you may opt to skip some of them if you like. Read the guide now!
Step 1: Select a Template from Credible Website
You must visit template.net and browse the extensive expanse library that hosts a thousand professionally made templates. Select one high-quality income statement template that you prefer and click the download button!
Step 2: Customize the Blank Income Statement
Once you have selected and downloaded an income statement template, you may begin to customize it. Customize everything! Do not leave anything out!
Step 3: Create a Table for the Income Statement
Financial statements, most of it, require tables to organize items and numbers accurately. Create a simple table with multiple columns and rows that will house the necessary details for an income statement.
Step 4: Do Research on What to Put in the Template
May it be a research paper or a business document, you must always do research. Research about how an income statement is structured. How many columns ad rows should be added? What are the markers that must be included in the first row?
Step 5: Assess the Blank Income Statement Final Output
After writing the whole thing, you must have the output undergo an assessment to correct mistakes and errors that you might have missed during the writing and creating process.
Step 6: Print the Blank Income Statement Output
As much as possible, you must print multiple copies of the document, and you must save a copy on your laptop. You do not know what will happen to your printed copy. It is good to have a backup copy.
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