Business income statement 2026

1. Click ‘Get Form’ to open the Income Statement in the editor.
2. Begin by entering the period for which you are preparing the income statement at the top of the form. This is crucial for accurate financial reporting.
3. In the 'Sales' section, input your total sales revenue. This figure represents all income generated from your business activities.
4. Next, calculate and enter your 'Cost of Goods Sold' (COGS). Start with opening inventory, add purchases of direct materials and factory wages, then subtract closing inventory to find COGS.
5. Subtract COGS from Sales to determine your 'Gross Profit'. This figure indicates how much money you have made before expenses.
6. Proceed to list all expenses such as salaries, rent, utilities, and other costs. Ensure each expense is accurately recorded to reflect true profitability.
7. Finally, calculate 'Earnings Before Taxes' by subtracting total expenses from gross profit. Deduct any applicable taxes to arrive at 'Net Earnings'.

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