An income statement is a crucial financial tool for both individuals and businesses. It shows a company’s profit or loss over a specific time period, providing valuable insights that help in informed decision-making.
Many corporate people depend on spreadsheet programs like Excel to manage expenses, track inventory, streamline workflows, and organize day-to-day activities.
Welcome to this guide, which includes free income statement template Excel. We will also discuss the steps to create a new income statement template from scratch, so make sure to read the article to the end.
Download FREE Income Statement Template Excel
Tens of income statement templates are available on the Internet. We understand that it is impossible to download and check each one to find the right fit for you.
That’s why we have done the heavy lifting for you.
Here is a list of top FREE income statement templates created using Excel.
1. Income Statement by SoftwareAccoutant
Click Here to Use This Template!
This professional-looking income statement designed by SoftwareAccountant is a must-try for both beginners and advanced users. It can be used to track an organization’s financial health over two years.
Start by adding your company details, like the company’s name, logo, address, and email ID, in the header section of the template. Enter the current and previous years for which you wish to compare the financial data.
This template uses various formulas to calculate the gross and net profit, total revenue, COGS, and expenses. Do not edit the cells holding the formulas; otherwise, the template may not work as expected.
It is free to download and can be customized without any limitations. You can add more rows and columns to accommodate more expenses using the main menu.
2. Income Statement Template by Vertex42
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This income statement template by Vertex42 gives you a summary of a company’s revenues and expenses, presenting a big picture of the financial performance over time. It is helpful mainly for small businesses to record their income and expenditure.
There are two sheets in this template:
- Single step: This tab allows you to record all income and expenses in a tabular form. Unlike a standard income statement, it doesn’t accommodate taxes, making it a good fit for individual use.
- Multi-step: In this sheet, you get a detailed report of your company’s financial health. It calculates the Gross Profit and Operating income separately. It first calculates the profit by subtracting the Cost Of Goods Sold from Net sales. Next, it calculates the operating income and then adjusts for interest expense and income tax to give the income from continuing operations.
It is a totally customizable template. You can use Excel’s formatting features to add more rows and columns.
3. Monthly Income Statement Template by Smartsheet
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This comprehensive template is useful for small businesses, freelancers, and self-employed individuals to track profits and losses monthly. It looks complex at first, but do not worry—it is as easy to use as others on this list.
Start by entering the total sales and average cost per sale, and the template will calculate the gross profit instantly.
Next, enter your operating, payroll, and office expenses to determine the total costs.
You do not need to make any manual calculations because the template uses Excel’s built-in functions to calculate your net profit/loss. Please do not edit the cells containing the formulas, as it may disturb the template’s workings.
4. Quarterly Income Statement Template
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This template offers a straightforward way to track quarterly profits and losses. It features a variety of tables and graphs to facilitate cash flow management throughout the quarter.
Here’s a quick explanation of all of the sections available in this template:
- Income: This sheet consists of a large table to record income from different sources and a chart that summarizes your earnings for the quarter.
- Cost of Goods Sold (COGS): Similar to the first sheet, this allows you to log COGS and visualize total expenditures using a bar graph.
- Operating Expenses: You can list all operating expenses, including rent, utilities, wages, marketing costs, and more.
- Other Expenses: This section is for miscellaneous costs such as interest, taxes, and others.
Each section features an easy-to-understand graph summarizing the information you input. The template is user-friendly, so you will quickly adapt to it.
You can download and customize it to make it more personal by adding your logo and company name. If you’re looking for a comprehensive template to monitor your quarterly income, feel free to download this template without hesitation.
5. Income Statement Template by CorporateFinanceInstitute
Click Here to Use This Template!
This income statement template shows monthly financial data for the entire year.
Start by listing the revenue resources and expenses, such as advertising, Insurance, Rent, Travel, Utilities, etc., for each month. The template automatically calculates the Total Net Revenue, Gross Profit, Earnings before and after interest, and net earnings.
It also includes an Annual Income statement template to track the profit/loss of different years.
Make sure to explore the example sheet to understand the meaning of each column quickly.
Similar to others, this template also contains built-in formulas. So, do not edit the cells containing the formulas; otherwise, they will not work as expected.
How to Create Profit and Loss Excel Template
Didn’t find the above ready made templates helpful?
Let’s create one from scratch. Excel is a powerful spreadsheet application with an easy-to-use interface. Here is a step-by-step guide to creating a new Profit and Loss Excel template within a few minutes.
We will be creating the template below,
STEP #1 – Create a Header
A Header is an important part of any template. It helps users identify the purpose of the document type when sharing it with others.
It allows you to include your personal or business details, like the name and logo.
Here are the steps to create a header,
- Open a new Excel Sheet
- Select the entire first row
- Increase the height as per your choice
- Select the cells from “A1” to “C1”
- Hover to the main menu and go to the “Home” tab
- Click on “Merge & Center” in the “Alignment” group
- Start typing “Income Statement“
- Adjust the font size to 20
- Make the font bold
- Adjust the alignment to the middle
- Change the cell background to green (Hex Code – #00ac46)
- Change the font color to white
Our header will look like below,
STEP #2 – Add Current and Prior Year Tables
We will be creating a template to compare the current year’s income, including gross and net worth, with the previous year’s stats.
Let’s create two fields to add the current and prior year tables.
- Click on the cell “B3”
- Enter “Current Year“
- Select the cell “C3”
- Type “Prior Year“
Now, these fields must follow the Date format. So, let’s change the format of the cells B4 and C4.
Here are the steps:
- Select the cells “B4” and “C4”
- Hover to the main menu and go to the “Home” tab
- In the “Number” group, you’ll see a drop-down list with the current format
(usually showing “General” by default) - Click on the drop-down and select “More Number Formats”
- You will see a Format Cells dialog box as shown below
- In the “Number” tab, select “Date” in the “Category”
- We want to display only the year instead of the whole date. Excel doesn’t have such a date format, so we will need to create a custom format by clicking on “Custom”
- Now, scroll down to find the “yyyy” date format
- Click on “OK”
Now, whenever you enter a date in the cell B4 and C4, it will only display the year, as shown below,
STEP #3 – Create a Table for recording the Income
Let us increase the width of column A as we will be listing various types of income there.
Let’s begin:
- Select the cells “A6” to “C6”
- Go to the “Home” tab and click on the “Merge & Center” option in the “Number” group
- Type “Revenue“
- Now, in the cell “B7”, type the formula “=B4”
- Similarly, let us select the cell “C7” and type the formula “=C4“
- Click on the cell “A8”
- Type “Sales Revenue“
- Complete the table as shown below
Our table is almost ready.
Next, let us make sure it automatically calculates the sum of the revenue using the SUM function in Excel.
Let’s start,
- Click on the cell “B12”
- Type “=SUM”
- Select the first option from the popup or press the “Tab” key
- Enter the cell reference as “B8:B11“
- End the formula with a closing parenthesis “)“
- Press “Enter” on your keyboard
The final formula would be as follows,
=SUM(B8:B11)Now, we need to apply the same formula to the cell C12.
For that,
- Select the cell “B12”, and you will see a Fill Handle icon. Refer to the following image,
- Click on it and drag over the cell “C12”
You will observe a “0” in both cells B12 and C12. Refer to the following image.
Next, we need to format cells from columns B and C so that the values entered will be displayed as currency.
- Select all the cell ranges as “B8:C12“
- Go to the main menu and click on the “Home” tab
- Click on the dropdown showing “General” in the “Number” group
- Select “Accounting” from the dropdown menu
Now, when you enter any values in the cell range B8:C12, a dollar ($) symbol will appear before the number.
It is also essential for an income statement to look professional. For that, we need to format the table.
- Click on the merged cells “A6” to “C6”
- Change the cell background color to light green (Hex Code – #d9ead3)
- Click on the cells “B7” and “C7”
- Change the background color of the cell to light gray (Hex Code – #f3f3f3)
- Next, select the cell range “A8:A11”
- Change the cell background color to light gray (Hex Code – #f3f3f3)
- At the bottom row, select the cells from “A12” to “C12”
- Change the cell background color to light green (Hex Code – #d9ead3)
- To change the color of the border, select all the cells of the table (A6 to C12) as shown below,
- In the “Home” tab, click on the “Borders” dropdown from the “Font” group
- Click on “More Borders”
- You will see a Format Cells dialog box
- Click on the “Color” dropdown and select the Light Gray color for the borders
Now, our revenue table is ready. Here’s how it looks.
STEP #4 – Create a Table for recording the Expenses
Our expense table should look like this,
You can add the information as per your unique requirements in both revenue and expenses tables.
You can use the same color code for the tables to give them an appealing look.
STEP #5 – Calculate Profits and Losses
In this final step, we will calculate the gross and net revenue using built-in formulas.
We need a table as shown below.
Make sure to follow the process of changing the cell formatting to currency, as mentioned in Step 3 of this article.
The gross profit is equal to the total revenue generated. So, we will use the following formula for the years 2024 and 2023 (our current and previous years).
=B12And,
=C12Net profit will be equal to gross profit (total revenue) minus total expenses. Here’s the formula for calculating net profit for 2024.
=B35-B31Similarly, for 2023, we need to use the following formula.
=C35-C31That’s it. Your Income Statement template is ready.
Here’s how it should look,
You can adjust the formatting to make your template look more attractive.
Download the Excel Income Statement template we created using the above steps. We have formatted the template based on our knowledge and expertise in Excel.
This template is free to download. You can even customize it without any limitations.