1. Income statement
The first financial statement: the income statement
The purpose of your income statement is to measure the profitability of your company over a period of time, which is typically a month or a year.
The income statement fundamentally follows the equation:
What to include in your income statement
Income statements generally follow a similar structure, but there are many different versions.
For budgeting purposes, you choose what accounts to include. The design of the income statement should ultimately be helpful for you to forecast the future.
It can be helpful to check your historical income and expense categories to determine what to include in your income statement.
Francis lets you auto-generate this overview by connecting to your accounting tool.
The following example illustrates typical items to include in your budget: