The income statement (also known as profit and loss statement) shows the revenues and expenses for a specific period of time, such as a month or a year.  The purpose of this statement is to show the reader the company’s profitability.

The following form should help you organize your income statement.  Before you begin, look over the chart of accounts to see what to include in your statement.  Your business may have items or categories that should be included that are not on this list.  Also, if your business is not projected to be profitable in the first year (many are not), you might wish to include up to five years of projections in order to show that your first year projected losses do not de-justify the investment.

NOTE: It might be unnecessary to include all the accounts named in Chart of Accounts, only use the accounts that are applicable to your business.

CHART OF ACCOUNTS
____________________

EARNINGS - Is the revenue generated from the sale of your products or services.

- Sales
- Sales Discounts
- Sales Retained and Allowances
- Others

GENERAL & ADMINISTRATIVE - Are the expenses directly associated with the running of your business.

- Advertising
- Repairs and Maintenance
- Contributions
- Entertainment
- Insurance - Such as general liability, medical and other types of insurance expense.
- Legal and Accounting Fees
- Licenses
- Rent Expense
- Office Supplies
- Outside Services - such as consultants, etc.
- Postage and Communications
- Taxes (Fed., State, Sales, etc.)
- Selling Expenses - Are expenses incurred in selling your products or services such as sales people salaries, commissions, bonuses, promotions, etc.
- Wages 
- Interest

Example of other types of General & Administrative Expenses are:

- Outside Product(s)
- Auto Expense
- Bank Product(s) Charges
- Dues and Subscriptions
- Depreciation Expense
- Amortization Expense
- Utilities Expense
- Equipment Rental
- Supplies Expense
- Automobile/Truck Expense
- Capital Purchases
- Miscellaneous Expense