An income statement (a.k.a. profit-and-loss statement) reports your business’s revenues, expenses, and overall profit or loss for a specific time period.

🏁FREE income statement template if you want to get started now: https://www.freshbooks.com/accounting...

The income statement is one of the 3 major financial statements businesses need to report on their financial performance. (The balance sheet and cash flow statement are the other 2.)

And it can give you valuable information about your profits and the costs associated with earning revenue. So it pays (literally!) to understand what goes into your income statement and how to interpret it.

In this video, learn what’s included in an income statement, how it’s structured, how to use it, and why you need it.

📖 Read more about income statements here:

What Is an Income Statement?
https://www.freshbooks.com/hub/accoun...

How to Write a Profit-and-Loss Statement
https://www.freshbooks.com/hub/report...

Single-Step vs. Multi-Step Income Statements
https://www.freshbooks.com/hub/accoun...


⏱Timestamps:
0:00 Introduction
0:07 What Is an Income Statement?
0:40 3 Key Components of an Income Statement
1:01 Income Statement Formats
1:56 Understanding Your Income Statement
2:41 Income Statement Example
3:47 Recap

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