What is Income statement?

Income statement (Definition)

An income statement displays a business’ revenue and expenses and shows whether the business has made or lost money during a period of time (monthly, quarterly, annual). Banks and other financial institutions can use it to determine the creditworthiness of a company and it includes revenue, expenses, profits, and losses. It is one of three key financial statements used to report a company's finances, with the other two are the cash flow and balance sheet.

An income statement helps businesses assess their revenue growth and savings to see what is required to generate a profit for the company. It also allows any problems to be noted and resolved before they cause major issues.

Checklist

End of financial year checklist

The end of the financial year is an important time of the year when businesses need to ensure they have submitted all necessary reporting requirements to the ATO. Use our end of financial year checklist to stay organised and prepared for tax time.

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