Income Statement in Business: What It Is and Why It’s Important

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What Is an Income Statement?
Understanding and Reading an Income Statement
What Are Income Statements Used for?
Frequent Reports
Pinpointing Expenses
Analysis of the Business
What to Include in an Income Statement
Revenue of Sales
Gains
Selling of assets Lawsuits Investments in financial instruments
Cost of Goods Sold
Gross Profit
Expenses
Advertising Costs
Administrative Costs
Net Income
Earnings Before Tax
Depreciation
Income Statement Example
The Takeaway
3 Small Business Loan Tips
Generally, it can be easier for entrepreneurs starting out to qualify for a loan from an online lender than from a traditional lender. Lantern by SoFi’s single application makes it easy to find and compare small business loan offers from multiple lenders. SBA loans are guaranteed by the U.S. Small Business Administration and typically offer favorable terms. They can also have more complicated applications and requirements than non-SBA business loans. If you need to borrow money to cover seasonal cash flow fluctuations, a business line of credit, rather than a term loan, provides the flexibility you likely need.
Frequently Asked Questions
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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