Income Statement Reports
An income statement is used for both financial analysis (to show how the earnings (revenue) and the amount you have spent (expenses) on the Balance Sheet were arrived at and over what period of time) and performance management purposes (total profit or loss). It is normally printed at the end of an accounting period to show how your company has performed to date in the fiscal period. You can generate Income Statement reports based on your company's financial history.
A standard income statement shows your company's revenues, expenses, and net income for a particular period. The income statement provides the detailed financial information that is not reported on the Balance Sheet.
Understanding the Income Statement
Revenues
You may wish to examine those accounts that have increased and decreased the most from the last reporting period. With this information, you can determine where your growth is greatest - and weakest - and adjust your sales strategies accordingly.
Expenses
Examine where your expenses have increased and decreased the most over the period. For example, compare administrative expenses to those directly incurred in making the inventory item or service (direct costs vs. general and admin costs)
Net income
Net income is the figure that should concern you the most. This figure helps you to determine your company's profitability. If your net income is up or down significantly, you may wish to look back on your revenues and expenses. Has your net income changed because you are selling more, or because it costs more to sell those items? You need to answer these kinds of questions before you can decide what changes you need to make to your business.
Types of Income Statements
Income Statement
Can be used to view and print an income statement for the current period or for previous periods. It can also be used to view a Comparative Income Statement (that compares the current period to a previous one). A four-period Comparative Income Statement is also available.
Multi-Period Income Statement
The multi-period income statement allows you to compare revenue, expense, and net income details over several periods. This gives you a detailed look at your company's performance over many periods. You can use it to examine all of the periods for which you have Sage 50 Accounting records.
Departmental Income StatementThis type of income statement allows you to view and print your revenues and expenses with separate columns for the departments you select. Non-departmental totals are also shown for each revenue and expense.
Gross Margin Income Statement
This report groups your accounts into operating
and non-operating expenses and revenues, and also reports your gross margin
for the selected period. Like the regular Income Statement, this report
can be used to view and print income statements for the current period,
or for previous periods. When assessing your company's profitability, use this report to help identify which departments or activities are earning or overspending
The Comparative Gross Margin Income Statement allows you to compare two periods.
The Actual vs Budget statement allows you to
compare your budgeted revenues and expenses to your actuals.
You must be using the departments
Comparative Subsidiary Income StatementIf you are working with a consolidated company, use the Comparative Subsidiary Income Statement to show revenue, expenses, and net income for a specified time period. You can choose to print the amount, or difference in amount or percentage of account totals, between subsidiary companies and the consolidated parent company.
You can also use comparative income statements to analyze
your company's progress over time. You can also compare various departments
within the same period.
To view these reports, open the Report Centre in the Home window, select Financials, Income Statement and then the report by name. Click Display.