The income statement, also known as income statement, a summary of the advantages of business or loss over a certain period of one month, three months or a year. Profit and loss account of the company’s total revenue during that time and operating costs.
What are the benefits and disadvantages that are used
It uses the income tax return for income and expense tracking so you can determine the operating performance of activities in time. Small business owners use these statements to determine which areas of your company’s budget or the budget. Among the questions that unexpected expenses that can be identified, such as telephone, fax, email, or maintenance costs. Profit and loss account can also have a dramatic increase in product yield or cost of sales as a percentage of sales back. Can also be used to determine the income tax.

It is very important to make a return to what is suitable for everyday business format.

The advantages and disadvantages, including balance sheets, are the basic elements of potential lenders such as banks, investors and suppliers is required. They will determine the financial information contained therein to the credit limit.

Sale
Turnover is the number of companies generate revenue. The amount recorded here is the total return less and sales discounts.

Cost of sales
This is a direct cost associated with the implementation or the acquisition of its products. Cost includes materials from external suppliers are used in the manufacture of your product you buy, and internal costs, which invest directly in the manufacturing process.

Gross profit
Gross profit is calculated by subtracting cost of sales to sales. Does not include operating costs or taxes.

Operating Expenses
This is the cost incurred each day for your business activities. Selling, general and administrative expenses: This example is divided into two categories.

Sales salary
This is the wages and bonuses and commissions paid to sales staff.

Guarantees and subsidies
Collateral is the price charged in the creation or acquisition of printed materials used by sales staff who are involved in sales marketing and sales of your product. Special pricing and product samples gift will be used to promote or sell your product.

Ad
You put all the costs of creating and placing advertisements in newspapers or media involved.

Other cost of goods sold
This includes all other costs incurred with the sale of your product. It also may travel, food, customer, sales meetings, rental of equipment for presentations, copying or printing fees.

Office Salaries
This is a full-time wage part-time office staff.

Lease
This is the cost incurred to rent or lease office and industrial buildings.

Utilities
This includes the cost of heating, air conditioning, electricity, telephone equipment, and used the phone in conjunction with your company.

Shrinkage
The annual depreciation expense, which takes into account the depreciation of equipment used in your company. Examples of devices that may be subject to amortization, copiers, computers, printers and fax machines.

Other overhead costs
Expenditure items that are not covered by other categories, or not clearly related to the products or functions must be linked as other overhead costs. Types of costs may include insurance, office supplies or janitorial services.

Total expenditure
This is a compilation of all expenses incurred in your business, without tax or charge interest on interest, if any.

Profit before tax
This amount represents the amount of profit before income tax paying entity. This figure is obtained by subtracting total operating expenses gross profit.

The tax system
This is the amount of taxes owed the federal government and, if the tax rate the government to state and local level.

Network
This is the amount of money the company made after tax.