Income Expense Statement for Small Business Owners

Income Expense Statement for Small Business Owners


today you’re gonna learn what an income
expense statement is and why it’s important for your business hi, Paul Monax of AgileWealth.com where i help small business owners understand the money and finances in
your business Now an income expense statement as an
accounting report but it also has a bunch of other names
like an income statement a profit and loss statement and a p and l because the accountants can’t even agree on a
single named for it just more accounting jargon to try and confuse
us non-accounts i guess Now an income expense statement is a view
of your business over a period of time it’s frequently a quarter but it could
be a year or a month anytime time period you really want to
look at and get the details for your business and how your business is
functioning It gives you a full picture of
everything that’s going on in your business all the money that’s coming in
as income to your business and everything that is going out, the expenses that
your business is incurring Now, this is what the income expense
statement looks like now as you can see you’ve got the Income here at the top. The sources of income can be anything from selling your own
products and services or making a commission office somebody elses’
products or services it can also be interest and dividends or investment
income or even getting royalties anything that is income into your
business and then below that you’ve got the
expense side over here expenses are everything that your business is spending money on from raw materials and supplies to computers salaries taxes funding your own retirement account
that’s one that I like myself now you cap is going to have a subtotal
income subtotal expense subtotal now, this here down at the bottom this total
also known as the bottom line that’s gonna tell you whether or not your
business is making any money or not it’s a very important number to your
business but it’s not the only critical number there are many numbers that you need to
focus on this is just the one that the income expense statement is
gonna tell you this is how you figure out what the
bottom line of your business and if your business is making any money is the
income expense statement and you need to have one in your
business and you need to compare the income expense statement in your
business on a regular basis you need to be creating one of these for every month every quarter and every year and then comparing it to the past
periods to figure out if your business is
doing better or worse than it was in the previous period and if your business has
seasonality that’s another thing that take into account your business many you know be a holiday based
business and so you’re gonna have higher income in the fourth quarter in
october november december and then it’s gonna tail off in the first
quarter january february march but that’s something you need to know
about your business and this is one of the tools that you use is the income expense statement it’s
one of the big three financial statements and it’s something that you need
to be utilizing in your business now today starting right now to make sure that your business is going
to be a successful and profitable as it can be which it is obviously why you’re in
business to begin with right Aren’t you looking for a means to support your family and you’ve chosen your business as the way to do that rather than having
a job in working for somebody else you have your own business and it’s
support your family but is it supporting your family in the lifestyle that you
really desire and the lifestyle that you want to have for your family and if it’s not, if your answer to that
question is no then you need to do something about that and one of the
things that i’m proposing you need to do is to get a better financial education
and learn about the money and finances in your business and how they work and put those to use in improving the
profitability of your business and living that lifestyle of your dream Hopefully you found this video helpful
and you’re looking for even more information in a better understanding of
the money and finance is your business and if so then I want you to click on the link
down below this video here and head over to my website an http://www.agilewealth.com/m12 and register for free download i’ve got a whole package of examples
templates and videos on understanding the money and finances in your business, so just head on over there and request your copy I’ll send it right
out to you thanks a lot and have a prosperous day

2 Comments

  1. snoo333 says:

    thank you very important information. I started my business two years ago have not done this. I have lost thousands of dollars because of it. 

    do you have longer videos explaining all of this? 

  2. Shay Simone says:

    Thank you! Extremely helpful since I didn't receive formal business education!

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