What is an Income Statement?
Definition: An income statement is one of the three important financial statements used for reporting a company’s financial performance over a specific accounting period, with the other two key statements being the balance sheet and the statement of cash flows.
In Plain English: An income statement shows how much money your business earned versus how much money the business spent in a given month/year.
Why Should You Care?
An income statement provides valuable insights into your business like; are you spending more than you’re making, leaky areas that could be eroding profits, and performance indicators to compare with peers.