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Income Statem
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How to use the in
1 On the first tab, called “Ch
categories of income, expe
use in your business.
2 On the second tab, called
enter your transaction deta
category (matching with t
Accounts tab).
3 The third tab is where you
display. Just select a date
like to see (for example, M
have your income stateme
how to use Excel for basic s
helpful artic
A Guide to Excel A
 usiness Guides

me Statement Generator

How to use the income statement generator:

n the first tab, called “Chart of Accounts”, enter all the

egories of income, expenses, and cost of sale that you
e in your business.

n the second tab, called “Transactions” is where you’ll

ter your transaction details—date, description, amount, and
egory (matching with the categories in your Chart of
counts tab).

e third tab is where your income statement will automatically

play. Just select a date range for the income statement you’d
e to see (for example, March 1 to March 28), and voila, you
ve your income statement.

more detailed breakdown of how to use this template (and

to use Excel for basic small business accounting) read our Receive a complimentary
helpful article on the Bench blog: best p
A Guide to Excel Accounting and Bookkeeping Speak with a Bench bookkeeping exp
are accurate, interpret financial statem
m

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 complimentary consultation on bookkeeping
best practices:

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more.

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 Chart of Accounts

Category Type
Sales Revenue Income
Service Revenue Income
Returns & Chargebacks Income
Interest Income Income
Other Income Income
Cost of Goods Sold Cost of Sales
Cost of Service Cost of Sales
Bank & Merchant Fees Expense
Business Meals Expense
Client Entertainment Expense
Computers or Equipment Expense
Gas & Auto Expense
Independent Contractor Expense
Insurance Payments Expense
Interest Paid Expense
Lawyers & Accountants Expense
Licenses or Fees Expense
Marketing or Advertising Expense
Miscellaneous Expenses Expense
Phone, Internet & Utilities Expense
Postage & Shipping Expense
Rent or Lease Expense
Software & Hosting Expense
Supplies Expense
Taxes Paid Expense
Travel & Transportation Expense
hart of Accounts

What sort of transactions should I put in this Category?

Revenue transactions sourced from selling products
Revenue transactions sourced from selling services
Sales or Service refunds, returns, and chargebacks
Income earned from interest
Other sources of income
Product purchases for the purpose of resale
Transactions that are directly related to the generation of Service Revenue
Fees from Banks or Merchant Processors
Meals with clients
Entertainment with clients
Computer or other equipment purchases
Gas and vehicle maintenance expenses
Payments to people for services
For all business insurance payments
Interest paid on credit cards or loans
Payments for professional services
Local, State, or Federal business licenses or fees
Marketing and advertising costs
Other business expenses
A place for common business utility expenses
Postage and shipping costs to customers
Rent or lease payments
Software and web hosting payments
Other business supplies
Taxes paid by the business
Travelling and transportation costs
How to use this tab:
Enter all the categories of income, cost of sales
and expenses you use in your business.

Note: the categories listed here are for your

reference only.

To learn more about how a chart of accounts

works (with examples) check out our:

Simple Guide to a Chart of Accounts

 Transactions

Date Description/Transaction Name Amount

3/13/2021 Deposit 400.00
3/15/2021 Fiverr 25.00
3/15/2021 State patent office 35.00
3/16/2021 Apple 1,350.53
3/20/2021 Bank fee 25.00
3/25/2021 Dividend 3.15
3/25/2021 Refund 35.00
3/25/2021 Deposit 600.00
3/26/2021 Black cab taxi 55.00
3/26/2021 Staples 25.00
3/28/2021 Fed Ex 30.00
3/30/2021 State patent office 55.00
3/31/2021 Meal with client 87.32
3/31/2021 Deposition costs 80.00
3/31/2021 Liability insurance 120.00
End
Category How to use this tab:
Service Revenue 1. Enter transactions one under the oth
Independent Contractor 2. Each transaction needs to have a da
Cost of Service 3. Select the most appropriate category
Computers or Equipment 4. Transactions don't need to be in any
Bank & Merchant Fees
Other Income
Returns & Chargebacks
Service Revenue
Travel & Transportation
Supplies
Postage & Shipping
Cost of Service
Business Meals
Cost of Service
Insurance Payments

Tired of being yo
Relax—we'
Check out our self-guided tour of the Benc
and expert bookkeeping team make ma

In just a few cl
 • up-to-date reports that help
• how to easily connect with your Ben
• a commitment-free previe

Take a free tour of th

e this tab:
actions one under the other
action needs to have a date (MM/DD/YY), description, amount (always positive)
most appropriate category using the "Chart of Accounts" tab
ns don't need to be in any particular order, the income statement is generated from the "Date" column

red of being your own accountant?

Relax—we're here to help.
self-guided tour of the Bench platform to learn how our easy-to-use software
bookkeeping team make managing your company finances a total breeze.

In just a few clicks, you can explore:

 up-to-date reports that help you understand your financial health
easily connect with your Bench bookkeeper and ask questions at anytime
• a commitment-free preview of our straightforward platform

e a free tour of the Bench platform today

 Income Statement
Date Range
Beginning Date 3/1/2021
Ending Date 3/31/2021

Revenues
Sales Revenue -
Service Revenue 1,000.00
Returns & Chargebacks (35.00)
Interest Income -
Other Income 3.15
Total Revenue 968.15

Cost of Sales
Cost of Goods Sold -
Cost of Service 170.00
Cost of Sales 170.00

Gross Profit 798.15

Expenses
Bank & Merchant Fees 25.00
Business Meals 87.32
Client Entertainment -
Computers or Equipment 1,350.53
Gas & Auto -
Independent Contractor 25.00
Insurance Payments 120.00
Interest Paid -
Lawyers & Accountants -
Licenses or Fees -
Marketing or Advertising -
Miscellaneous Expenses -
Phone, Internet & Utilities -
 Postage & Shipping 30.00
Rent or Lease -
Software & Hosting -
Supplies 25.00
Taxes Paid -
Travel & Transportation 55.00
Total Expenses 1,717.85

Net Profit (919.70)

How to use this tab:
Enter beginning and ending dates (MM/DD/YY) in the blue highlighted cells to
generate your income statement for that date range.
 Additional Resources
To Help Your Small Business Grow

A Founder's Guide to Startup Accounting

Accounting may be a hassle, but it can also be your
startup's secret weapon. Here's how.

Read article

Understanding an Income Statement

A clear explanation and an easy to follow video explaining the
purpose of the income statement.

Read article

Financial Statements 101

Learn how to read financial statements. They can (and should)
influence every major decision you make in your small business.

Read article

Find more helpful resources for navigating small business

finances on our blog at: bench.co/blog
 Return on Investment of
Hiring a Bookkeeper
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this short guide will help you determine when it's
the right time.
Bookkeeping Basics
A step-by-step guide for setting
your own bookkeeping proces

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ookkeeping Basics Small Business Accounting 101
step-by-step guide for setting up Learn the fundamentals of small
your own bookkeeping process. business accounting, and set your
financials up for success.

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