Income Statement Examples for Small Business

Explore three detailed examples of income statements for small businesses, showcasing various industries and contexts.
By Jamie

Understanding Income Statements

An income statement, also known as a profit and loss statement, summarizes a business’s revenues and expenses over a specific period, providing insights into profitability. For small businesses, this document is crucial for assessing financial health and making informed decisions. Below are three diverse examples of income statements tailored to different types of small businesses.

1. Coffee Shop Income Statement

In this example, we look at a small coffee shop called “Brewed Awakenings” that opened in 2022. This income statement provides insights into its operations during the first year.

The income statement for Brewed Awakenings for the year ended December 31, 2022, is as follows:

Account Amount
Revenue
Coffee Sales $120,000
Pastry Sales $30,000
Total Revenue $150,000
Expenses
Cost of Goods Sold $50,000
Rent Expense $24,000
Utilities Expense $6,000
Wages Expense $40,000
Marketing Expense $5,000
Total Expenses $125,000
Net Income $25,000

This income statement indicates that Brewed Awakenings generated a net income of $25,000 in its first year, highlighting a successful start.

Notes:

  • Revenue Streams: The coffee shop primarily earns from coffee and pastry sales, showcasing the importance of diversifying income sources.
  • Cost Management: Monitoring expenses like rent and wages can significantly impact profitability.

2. Digital Marketing Agency Income Statement

Next, we analyze the income statement of a small digital marketing agency named “MarketMinds” that specializes in social media marketing. This statement reflects its performance over the last fiscal year.

The income statement for MarketMinds for the year ended June 30, 2023, is as follows:

Account Amount
Revenue
Service Revenue $200,000
Consulting Revenue $50,000
Total Revenue $250,000
Expenses
Salaries Expense $120,000
Software Subscriptions $15,000
Office Rent $30,000
Marketing Expense $10,000
Miscellaneous Expenses $5,000
Total Expenses $180,000
Net Income $70,000

MarketMinds reported a net income of $70,000, demonstrating effective management of both revenue and expenses.

Notes:

  • Service Diversity: The agency’s income is derived from multiple services, which helps in stabilizing revenue streams.
  • Investment in Technology: The software subscriptions indicate an investment in tools necessary for operational efficiency.

3. E-commerce Store Income Statement

Lastly, we review the income statement for a small e-commerce business called “EcoGoods,” which sells sustainable products online. Here’s how it performed in the last year.

The income statement for EcoGoods for the year ended September 30, 2023, is as follows:

Account Amount
Revenue
Product Sales $300,000
Shipping Charges $10,000
Total Revenue $310,000
Expenses
Cost of Goods Sold $120,000
Advertising Expenses $20,000
Website Maintenance $5,000
Payment Processing Fees $7,000
Wages Expense $40,000
Total Expenses $192,000
Net Income $118,000

EcoGoods achieved a net income of $118,000, pointing to a strong market position and effective cost management.

Notes:

  • High Revenue Potential: E-commerce businesses often have higher revenue potential due to the global reach.
  • Variable Costs: Managing costs associated with product sales and advertising is vital for maintaining profitability.

These examples illustrate how income statements can vary across different small businesses, providing essential insights into their financial health and operational efficiency.