Simply put … An Income Statement Shows the Profit and Loss for a Specific Period
The Income Statement position in the Transaction accounting flow in FIGG Excel accounting system.
An Income statement is a report that draws all account details and values from the Income and Expenses section of the Trial balance, to display in a format to immediately identify the value of the Total income, Cost of sales, Gross profit, minus Expenses, which then displays the Profit or loss for the specific period of the Income statement, whether that be for one month or since the beginning of the financial year. Just like the Balance sheet, if the values do not come directly from the Trial balance, there is a good chance the Income statement values will not be correct.
The accounts and values on the Trial balance are grouped into other descriptions and arranged in a Balance sheet format. A Trial balance has a purpose as described on this website and a Balance sheet uses all the accounts and values of the Trial balance for a different purpose.
The Income statement in the FIGG small business accounting system reports in a column per month and a total column. It automatically updates to the Annual financial statements using only the Total column figures. For monthly management, the reporting in a column per month is really great.
