To the ordinary Joe, income is equally defined with existence, or life itself, if you may. Like a farmer’s seasonal harvest, income is also considered as a business’ success for the enterprising young entrepreneur. The fruits of our labor, indeed. Either way, income in the eyes of the state, is the basis from which our taxes will be derived from, and eligibility when availing of government services. Aside from that, income is also used by private institutions, such as banks, whenever we submit our loan applications.
What Is an Income Statement Spreadsheet Forms?
Income statements spreadsheets are financial statements used to state someone’s income—personal, household, and business—in a certain period. These financial documents are either used in business planning or formulating your family’s monthly budget. They’re also used as requirements for loan applications, government services, as well as tax computation. Like profit and loss statements used by businesses, these financial statements also summarizes your earnings and expenses, and are also prepared periodically or when needed.
FREE 5+ Income Statement Spreadsheet Forms in PDF
1. Income Statement Spreadsheet Template
2. Income Statement Spreadsheet Example
3. Sample Income Statement Spreadsheet Template
4. Annual Income Statement Spreadsheet Sample
5. Income Statement Spreadsheet & Analysis
6. Year-End Income Statement Spreadsheet
What Are the Different Types of Income?
Income can be viewed using three different perspectives—personal, household, and business. Each of these types represents the sum of all earnings, profits, and other forms of earnings in a certain period. In the eyes of the government, this is an opportunity to generate revenue and are also the basis of computing our income taxes.
Income tax is a tax levied by the government on any form of earnings such as wages, for an average working man, and profit for businesses. Americans are expected to “pay nearly $1.7 trillion in federal taxes in 2020″, said in an article by debt.org. These taxes, along with others, are used to keep the state running as a whole.
Income are classified into three types— personal income, household income, and business income. And, listed below are the three types of income and their respective definitions.
1. Personal Income
Personal income are derived from wages, salary, and pay. This income are commonly identified with workers, employees, and self-employed individuals. Personal income are the first ones we earn back when we’re starting to “make our bones.” Income tax derived from personal income forms the bulk of federal tax collected by the government.
2. Household Income
Household income are accumulated earnings by members of a particular household. This type of income are generated by members of a household who are 15 years of age and older. In simple terms, household income is the combined income that mom and dad make in a year.
3. Business Income
Business income are types of income that resulted from any business activity. This income are divided into two, the gross income and the net income. Business income are computed by deducting earnings from expenses and is usually taxed before being distributed among partners.
How to Prepare an Income Statement Spreadsheet Form
Income statements are written statements where income in a certain period are reported. These are generally the list of money earned and expenses accrued. Additionally, income statements are part of our everyday lives that the law requires them to pay our taxes. So if you’re new to the world of “man’s payroll,” chances are, preparing an income statement would be in your to adulting to-do list. And to help you accomplish your to-do list, here are the steps of how to prepare an Income Statement Spreadsheet Form.
Step 1. Prepare the Necessary Documents
Gather the necessary documents in preparing your Income Statement Spreadsheet. These documents are your payslip, receipts, bills, and invoices. These contain all the needed information that you’ll need to report in your income statement. To make your next task easier, list all those information in a blank piece of paper and divide them into two groups, namely the earnings and expenses.
Step 2. Grab an Income Statement Spreadsheet Template
Next, grab an Income Statement Spreadsheet template from a list of samples that you’ll find in this article. To begin this step, pick and choose the Income Statement Spreadsheet template that catches your fancy and feel comfortable working with. Doing this step makes your life easier and convenient. After you found the Income Statement Spreadsheet template that you desire the most, click the download button beside it and lay claim over it.
Step 3. Edit the Income Statement Spreadsheet Form
Then, edit the Income Statement Spreadsheet template that you’ve recently downloaded. To start the process, begin by replacing some of the information found in the leftmost cell with yours. Next, place the amounts and numbers on their individual cells according to how you classified them. Use the list that you’ve prepared beforehand. Also, don’t forget to fill out the spaces intended for your personal information.
Step 4. Print the Income Statement Spreadsheet Form
After you’re done with editing the template, print the income statement using your home or office printer. Printing your income statement is inherently useful whenever you’re going to use this for transactions such as income tax filing or applying for a loan. Also, a printed income statement can be used when formulating your budget. Lastly, as a reminder, don’t forget to save and store your Income Statement Spreadsheet template for future use and reference.
Step 5. Attach the Statement to your Income Tax Form
Income Statements are one of the many business forms required by the government when filing your income tax. To complete the whole process, attach your income statement to your income tax form. Next, gather all the needed documents for submission. Put all of those documents in a folder and envelope, along with your income tax form and income statement. Then, submit them to the nearest IRS or tax collection agency near your area.
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