Every small business and shop has profit from its sales. when a shop buy an item as purchase price and sell it, so that you should wait for a sales profit. report of sales profit is known and popular near accountant as name of Income statement. Statements of income as net profit and gross profit are survival for any manager. Low income will closed a shop or business and vise versa.
Net profit = Income – expenses
Note: sales profit is not always positive and when a sales with price under purchase as clearance event is negative profit as name sales loss
Sample of purchase and sales of an item
As in this sample photo, you can see we buy a watch 100AED and sell it as 150AED , so income of this sales is 50AED
Importance of income statement
Report of low income is a red line warming for account department to inform director manager for a suitable economic decisions. A decision to reduce expenses and increase sales to reach more profits.
Income statement in iGreen software
iGreen software calculates income statement as sales profit instantly after any sales entry. you can access to this report from home screen by click on button “INVOICES PROFITS”
After click on this bottom, you will see a report as below:
You can find reports related to income statement as below:
- Invoice profits
- Items profit
All these reports could be run in a selected date
For example, you can run invoice profits for date of today and it will show you only invoices of today
Also this report will show you a graph to show how was days profits and which days are the best with top profits. this will give you an easy visual view of profits report.
