Best examples of income statement examples for small business (with real numbers)

Quick tour of real examples of income statement examples for small business

Let’s start where most owners actually start: looking at what other people are doing and copying the parts that make sense.

Below are several examples of income statement examples for small business, each in a different industry and at a different stage of growth. The structure is similar in every case:

• Revenue (sales)
• Direct costs (cost of goods sold or cost of services)
• Gross profit
• Operating expenses
• Operating income (or loss)
• Other income/expenses and taxes

You’ll see that pattern repeat, even though the details change.

Coffee shop: classic brick‑and‑mortar example of an income statement

Imagine a neighborhood coffee shop in Austin doing steady business. Here’s a simplified monthly income statement example:

Brewed Awakenings Coffee – Income Statement (Month Ended June 30, 2025)
_All amounts in USD_

Revenue

• Coffee & drinks: $42,000
• Food & pastries: $13,000
• Merchandise (mugs, beans): $5,000
  Total Revenue: $60,000

Cost of Goods Sold (COGS)

• Coffee beans & milk: $11,000
• Food & pastry purchases: $6,000
• Packaging & disposables: $1,500
  Total COGS: $18,500

Gross Profit: $41,500

Operating Expenses

• Rent: $8,000
• Wages & payroll taxes: $17,000
• Utilities & internet: $1,800
• Marketing & promotions: $1,200
• Insurance & licenses: $900
• Repairs & maintenance: $600
• Accounting & legal: $500
• Miscellaneous: $400
  Total Operating Expenses: $30,400

Operating Income: $11,100

Other Income / (Expenses)

• Interest expense (equipment loan): \((450)\)

Net Income Before Tax: $10,650

• Income tax estimate: \((2,660)\)
  Net Income: $7,990

This is one of the best examples of how a small retail business income statement highlights the real pressure points: rent, wages, and ingredient costs. If your coffee shop’s COGS is closer to 50% of sales, you know something’s off compared to this kind of benchmark.

Freelance designer: service‑based example of income statement

Service businesses often ask for an example of an income statement that doesn’t involve inventory. Here’s a quarterly snapshot for a solo graphic designer working remotely.

PixelCraft Design Studio – Income Statement (Quarter Ended March 31, 2025)

Revenue

• Branding projects: $24,000
• Website design: $18,000
• Retainer clients: $9,000
  Total Revenue: $51,000

Cost of Services

• Contracted illustrators: $3,000
• Stock photos & fonts: $1,200
  Total Cost of Services: $4,200

Gross Profit: $46,800

Operating Expenses

• Home office rent allocation: $3,000
• Software subscriptions (Adobe, Figma, etc.): $1,050
• Computer & equipment depreciation: $900
• Marketing (ads, portfolio site): $1,200
• Travel & client meetings: $600
• Health insurance: $2,100
• Phone & internet: $450
• Professional development (courses): $750
• Accounting & tax prep: $600
  Total Operating Expenses: $10,650

Operating Income: $36,150

Other Income / (Expenses)

• Interest income: $40

Net Income Before Tax: $36,190

Notice the pattern: high gross margins, but expenses like software, health insurance, and marketing still matter. For a freelancer, this is one of the cleaner examples of income statement examples for small business because it shows how lean a service business can be and still support a healthy income.

E‑commerce store: online retail income statement example

Online sellers often have lower rent but higher shipping and advertising costs. Here’s a monthly income statement for a Shopify‑based e‑commerce brand selling fitness accessories.

FlexFit Gear – Income Statement (Month Ended April 30, 2025)

Revenue

• Website sales: $85,000
• Marketplace sales (Amazon, eBay): $40,000
• Returns & refunds: \((5,000)\)
  Net Revenue: $120,000

Cost of Goods Sold

• Product purchases from supplier: $54,000
• Inbound freight & customs: $4,500
• Packaging materials: $2,200
• Merchant & marketplace fees (COGS portion): $3,300
  Total COGS: $64,000

Gross Profit: $56,000

Operating Expenses

• Advertising (Meta, Google, TikTok): $18,000
• Salaries (2 employees): $12,000
• Warehouse rent & utilities: $5,500
• Software (Shopify, apps, email marketing): $1,600
• Shipping & fulfillment labor: $6,800
• Returns processing: $1,200
• Insurance: $700
• Professional fees: $600
  Total Operating Expenses: $46,400

Operating Income: $9,600

Other Income / (Expenses)

• Interest expense (line of credit): \((750)\)

Net Income Before Tax: $8,850

This is one of those real examples that explains why so many online brands feel “busy but broke.” Advertising and fulfillment can eat profits quickly. When you compare your own store to this example of an income statement, the first question is usually: is my ad spend pulling its weight?

Consulting firm: B2B service income statement example

Now let’s look at a small, three‑person consulting firm advising mid‑sized companies on operations and process improvement.

OpsEdge Consulting LLC – Income Statement (Year Ended December 31, 2024)

Revenue

• Project‑based consulting: $420,000
• Ongoing advisory retainers: $180,000
  Total Revenue: $600,000

Cost of Services

• Subcontractors & specialists: $60,000
• Travel to client sites: $24,000
  Total Cost of Services: $84,000

Gross Profit: $516,000

Operating Expenses

• Partner salaries & draws: $240,000
• Office rent & utilities: $36,000
• Software & data tools: $9,600
• Marketing & conferences: $24,000
• Insurance (professional liability, general): $12,000
• Professional fees: $6,000
• Training & certifications: $7,200
• Misc. admin expenses: $5,400
  Total Operating Expenses: $340,200

Operating Income: $175,800

Other Income / (Expenses)

• Interest income: $1,200
• Interest expense: \((1,000)\)

Net Income Before Tax: $176,000

Consulting firms are often held up as best examples of income statement examples for small business when banks or investors want to see stable margins and recurring revenue. This layout also matches what many lenders expect when you apply for an SBA loan.

Small manufacturer: product‑based example with overhead

Manufacturing income statements look slightly different because of factory overhead. Here’s a quarterly example for a small custom furniture maker.

UrbanWood Creations – Income Statement (Quarter Ended June 30, 2025)

Revenue

• Custom furniture sales: $210,000
• Wholesale orders: $90,000
  Total Revenue: $300,000

Cost of Goods Manufactured & Sold

• Raw materials (wood, hardware): $78,000
• Direct labor (shop workers): $54,000
• Factory rent & utilities: $18,000
• Equipment maintenance: $6,000
  Total COGS: $156,000

Gross Profit: $144,000

Operating Expenses

• Owner salary: $45,000
• Sales & admin staff: $30,000
• Showroom rent & utilities: $18,000
• Marketing & website: $9,000
• Insurance: $6,000
• Accounting & legal: $4,500
• Office supplies & misc.: $3,000
  Total Operating Expenses: $115,500

Operating Income: $28,500

Other Income / (Expenses)

• Interest expense (equipment loans): \((3,200)\)

Net Income Before Tax: $25,300

For product businesses that make what they sell, this is one of the more realistic examples of income statement examples for small business. The key twist is that some “overhead” like factory rent is baked into COGS, not operating expenses.

Home cleaning service: local service income statement example

Local, labor‑heavy services have their own pattern: lots of wages, low materials, and often thin margins if pricing is off. Here’s a monthly example.

SparkleHome Cleaning Co. – Income Statement (Month Ended May 31, 2025)

Revenue

• Residential recurring clients: $32,000
• One‑time deep cleans: $8,000
  Total Revenue: $40,000

Cost of Services

• Cleaner wages: $20,000
• Payroll taxes & benefits: $3,800
• Cleaning supplies: $1,200
  Total Cost of Services: $25,000

Gross Profit: $15,000

Operating Expenses

• Office rent & utilities: $2,000
• Vehicle expenses (fuel, maintenance): $2,400
• Insurance (liability, workers’ comp): $1,600
• Advertising & referrals: $1,200
• Scheduling & CRM software: $350
• Phone & internet: $300
• Owner salary: $4,000
• Misc. admin: $450
  Total Operating Expenses: $12,300

Operating Income: $2,700

Net Income Before Tax: $2,700

This is one of the more sobering but very real examples of income statement examples for small business: lots of work, not a lot left over. It’s also a great example of how a small change in pricing or scheduling efficiency can swing profit dramatically.

SaaS startup: subscription‑based income statement example

Finally, let’s look at a tiny software‑as‑a‑service startup with recurring monthly subscriptions.

FlowTrack Software Inc. – Income Statement (Month Ended July 31, 2025)

Revenue

• Monthly subscriptions (MRR): $45,000
• Onboarding & setup fees: $5,000
  Total Revenue: $50,000

Cost of Revenue

• Cloud hosting & data: $6,000
• Third‑party APIs: $1,200
• Customer support contractors: $3,800
  Total Cost of Revenue: $11,000

Gross Profit: $39,000

Operating Expenses

• Salaries (founders & devs): $42,000
• Sales & marketing: $18,000
• Office & remote stipends: $3,500
• Software tools: $2,200
• Legal & accounting: $1,800
• Misc. admin: $1,000
  Total Operating Expenses: $68,500

Operating Income (Loss): \((29,500)\)

Net Income Before Tax: \((29,500)\)

This is one of the best examples of income statement examples for small business that are intentionally losing money in the short term to grow recurring revenue. Many tech investors expect to see negative income early on, as long as subscriber growth is strong.

How 2024–2025 trends show up in small business income statements

These examples include 2024–2025 realities that are already reshaping small business income statements:

• Higher labor costs. Minimum wage increases and a tight labor market mean higher wage lines across retail, restaurants, and services. The U.S. Bureau of Labor Statistics tracks these trends in detail at bls.gov.
• Rising rent and occupancy costs. Many urban areas have seen commercial rent pressure rebound post‑pandemic, which is obvious in the coffee shop and showroom examples.
• Software subscriptions everywhere. Even tiny cleaning companies now carry software lines for scheduling, CRM, and payments. This is a new normal compared to pre‑2020 statements.
• Digital ad spend volatility. E‑commerce and SaaS examples include large and sometimes unstable advertising budgets. Changes in privacy rules and ad platforms have made acquisition costs more unpredictable.
• Financing costs. Higher interest rates in 2023–2024 show up as larger interest expense lines on equipment loans and credit lines, affecting manufacturers and retailers in particular.

When you compare your own P&L to these examples of income statement examples for small business, it’s worth asking: are your wages, rent, and software costs in line with current market conditions, or are you stuck in a pre‑pandemic cost structure that no longer matches reality?

How to adapt these examples of income statement examples for small business to your own books

You don’t need to copy every line from these real examples. The goal is to:

• Match the structure (revenue → direct costs → gross profit → operating expenses → net income).
• Use labels that make sense to you and your accountant.
• Keep personal and business expenses separate so your income statement tells a clean story.

If you use accounting software like QuickBooks, Xero, or Wave, you can customize your chart of accounts to mirror whichever example of an income statement here feels closest to your industry. Many business owners also cross‑check their layout with IRS guidance; the IRS has small business resources and publications at irs.gov/businesses/small-businesses-self-employed that are worth a look.

For more formal guidance on financial statement structure, the U.S. Small Business Administration and many university small business centers publish templates aligned with generally accepted accounting principles (GAAP). A good starting point is the SBA‑linked resources and accounting overviews at sites like extension.harvard.edu and nonprofit small business education organizations such as sba.gov.

FAQs about income statement examples for small business

How often should a small business prepare an income statement?
Most small businesses should prepare an income statement at least monthly to keep an eye on profitability and cash needs. At a minimum, you’ll need annual statements for tax filing and often quarterly for estimated taxes or lender reporting.

What is an example of a simple income statement for a very small side hustle?
A part‑time tutoring business might show: revenue from tutoring sessions, minus direct costs like online platform fees and learning materials, then a few operating expenses such as internet, software, and maybe a small home office allocation. The structure is the same as the larger real examples above, just with fewer lines.

Do I need to follow GAAP for my small business income statement?
If you’re not publicly traded and don’t have complex financing, you often have some flexibility. However, lenders and investors usually prefer income statements that follow GAAP conventions. The U.S. Securities and Exchange Commission and educational institutions like Harvard and other universities provide good background reading on GAAP at their .gov and .edu sites.

Where can I find more examples of income statement examples for small business?
Beyond the examples included here, you can review sample financial statements from:

• The U.S. Small Business Administration’s resources on sba.gov
• University small business centers hosted on .edu domains
• Nonprofit financial education groups that post templates and real examples for training purposes

What’s the difference between an income statement and a cash flow statement?
An income statement shows profitability over a period — revenue earned and expenses incurred, whether or not the cash has moved yet. A cash flow statement tracks the actual cash coming in and going out. You can be profitable on your income statement and still run short on cash if customers pay slowly or you carry a lot of inventory.

The bottom line: use these best examples of income statement examples for small business as a starting point, not a straightjacket. Borrow the layout that fits your world, rename the lines so they make sense to you, and update the numbers every month. Over time, your income statement stops being a tax chore and starts becoming the scoreboard you actually rely on to run the business.