Income Statement

This page reviews everything related to the income statement, how to access it, its concept and features.

To access the “Income Statement” page, please follow these instructions:

• Start by clicking on the “Finance” menu in the main menu.
• Then, click on “Account Review” available in the top toolbar of the page.
• Next, click on the link “Income Statement.”

Concept and Features of the “Income Statement” Page:

What is the Income Statement: The Income Statement is one of the key financial statements used to provide an overview of a company’s performance and business entity over a specific period, typically on an annual basis. It is also known as the Profit and Loss Statement and displays details of revenues and expenses that reflect the company’s operating result during the financial period.

• Details of the Income Statement:

  1. Revenues: These are the financial returns representing the total sales or services provided by the company during the financial period.
  2. Cost of Goods Sold: It represents the cost of goods or services sold during the financial period. This cost includes raw materials, labor, and production costs.
  3. Gross Profit (Total Gross): Calculated by subtracting the cost of goods sold from revenues. This amount represents the total profit before deducting general and administrative expenses.
  4. General and Administrative Expenses: These items include indirect expenses associated with managing the company’s daily operations, such as salaries, wages, rent, taxes, and marketing.
  5. Net Profit (Profit After Tax): Calculated by subtracting income taxes from the profit before taxes. This item represents the final profit achieved by the company after deducting taxes.

• Features of the Income Statement:

  1. Financial Performance Analysis: The Income Statement allows investors, shareholders, and managers to analyze the company’s performance over a specific period, aiding in making better investment or managerial decisions.
  2. Profitability Assessment: The Income Statement shows the company’s actual ability to generate profits from its operational activities, reflecting the strength of the company’s economic growth.
  3. Revenue and Cost Monitoring: The Income Statement helps track various revenue sources and their estimation, as well as monitoring and estimating various costs and their impact on profit.
  4. Financial Decision-Making: The Income Statement provides essential information for making important financial decisions, such as whether certain costs need to be reduced or increased and whether revenue strategies need adjustment.
  5. Financial Disclosure: The Income Statement is part of financial disclosure requirements, where companies and entities must present it to relevant parties, such as investors and government authorities.
  6. Financial Sustainability Assessment: The Income Statement can help companies assess the sustainability of their business activities and their ability to achieve profits in the long term.
  7. Review of Account Categories: Through the “Income Statement” page, you can view and review account categories related to the income statement. Simply click on the link of the account category you want to review.

• Available Search Filters include:

  1. Date Filter: This feature allows you to extract multiple time-spanned income statements, starting from days and months to quarterly or yearly periods. You can set the start and end date to view the income statement during the specified period.
  2. Branch Filter: This feature enables you to extract income statements related to specific branches. You can choose to display an income statement that includes all branches for a comprehensive view of performance.
  3. Sector Filter: This feature allows you to view financial data related to a specific sector and select an option to display financial data for all sectors for a detailed overview.
  4. Comparison Filter: There are several options available, including “Accumulated – First Year – Budgeted.”
     • Accumulated: Through this option, the cumulative comparison tool allows you to access a comprehensive view of financial performance. It shows you expenses, revenues, and profits achieved during the specified period from the date filter in the “Period” column. Here lies the distinction: you can review expenses, revenues, and profits across all periods, and this information is displayed in the “Cumulative” column. By simply dividing these two figures, you can calculate the percentage of achievement for your company or institution, which is displayed in the “Achievement Rate” column.
     • First Year Period: This option allows you to view expenses, revenues, and profits during the specified period through the date filter. This data is displayed in the “Period” column. Additionally, you can examine expenses, revenues, and profits during the same period as defined in the date filter for the previous year. This information is displayed in the “Previous Year Period” column. Simply put, by dividing these two numbers, we can calculate your company’s or institution’s progress rate, which is displayed in the “Achievement Rate” column.
     • Budgeted: This choice provides you with a window to forecast future financial business operations. You can review expenses, revenues, and profits achieved during the specified period through the date filter. This data is displayed in the “Period” column. Additionally, you can review expenses, revenues, and profits estimated in advance for the same period through the Budgeted option. This information is displayed in the “Budget” column. Through the simple division of these two numbers, you can calculate your company’s or institution’s progress rate, which is displayed in the “Achievement Rate” column.