Article · Article

How to Read and Analyze an Income Statement

Harvard Business School Online · online.hbs.edu Free Beginner

HBS Online's plain explanation of what goes into an income statement and how accountants prepare one from the trial balance, with the ratios to read from it.

  • An income statement covers a period; it summarises all income and expenses in it.
  • It is prepared from the trial balance at the start and end of the period.
  • Compare margins across periods, not just the bottom line.
Open on online.hbs.edu ↗

The question it answers

  1. How do I make a profit and loss statement for my business?

Read with it

  1. The most accessible book for non-finance founders on reading a P&L, balance sheet, and cash flow statement. It demystifies the... hbr.org Book · book (~304 pages) Financial Intelligence for Entrepreneurs Karen Berman & Joe Knight
  2. Accounting software made in India with GST invoicing; it produces the profit and loss statement from your entries. There is a... zoho.com Tool · Pricing page Zoho Books plans and pricing (India) Zoho
  3. A line-by-line guide to how an income statement (P&L) is built: revenue, cost of goods sold, gross profit, operating expenses,... corporatefinanceinstitute.com Article · Guide Income Statement Corporate Finance Institute
  4. A free downloadable Excel profit and loss statement and projection template for a small business. vertex42.com Template · Excel template Profit and Loss Template Vertex42
  5. A free tutorial by a CPA that walks through the income statement line by line, including the accrual rule: income when earned,... accountingcoach.com Article · Tutorial Income Statement (explanation) AccountingCoach
eChai Partner Brands The partnership →