Information About Financial Statements – Income Statement

Although it is not mandatory to be a trained accountant to devise a Strategy for Revenue Perfection, everyone in sales and marketing should have a clear understanding of what financial analysis entails. It’s all too tempting, and all too simple, to plan sales and marketing activities using “blue skies” thinking. It’s much easier to waste money without really understanding what you’re getting in exchange. Sales and marketing executives must be more disciplined and strategic in their approach to preparing, implementing, and reviewing sales and marketing strategies and plans. Getting a basic understanding of the financial consequences of decisions and how financial metrics can be used to track and manage marketing activities is one way to put more discipline into the process. The aim of this book is to do just that, and the first chapter is devoted to an overview of the activities involved in financial analysis.Do you want to learn more? look at this site

The Income Statement is a financial statement that shows how much money

The income statement, also known as the P&L (profit and loss) statement, is shown below. This is a condensed version since most income statements have a lot more information; for example, expenditures are usually reported separately.

Account for the G/L ledger:

The income statement is a financial statement that shows a company’s financial results for a given accounting period. Financial output is measured by summarising how the company generates revenue and spends money on both operating and non-operating activities. It also displays the net profit or loss for a given accounting period, usually a fiscal quarter or year. The income statement, also known as the “profit and loss statement” or “statement of revenue and cost,” is a financial statement that shows how much money a company makes.

Total sales (revenues) for the accounting period are known as sales. Note that these rates do not include refunds, deductions, or discounts.

Discounts – Customers get discounts for paying their bills on a tie to your firm.

COGS (Cost of Goods Sold) – This is the sum of all direct costs associated with the product or service sold and reported during the accounting period.

Operating costs – These are the those expenses that aren’t included in COGS but are relevant to the business’s service during the accounting period. Sales wages, payroll taxes, administrative salaries, service salaries, and insurance are all included in this account, which is often referred to as “SG&A” (sales general and administrative). Typical material handling expenses include warehousing, maintenance, and administrative office costs (rent, computers, accounting fees, legal fees). It’s also popular to separate advertisement and variable sale cost allocations (travel and entertainment).