Top 5 Mistakes to Avoid When Creating an Income Statement

Creating an income statement is a fundamental part of running any business, whether you’re a startup founder, a small business owner, or a seasoned financial professional. The income statement, also known as the profit and loss statement (P&L), summarizes a company’s revenues, expenses, and profits over a specific period. It helps determine the financial performance of a business and is crucial for decision-making, reporting to stakeholders, and ensuring compliance with tax authorities.