An income statement template provides great help to a business. It helps a business owner to decide whether they can generate profit by increasing revenue or by decreasing their costs, or by both. Moreover, it further emphasizes to them what are the possible outcomes of the steps that they took at the start of the financial period. An income statement guides users and stakeholders in evaluating the performance of a business during a calendar year or fiscal year. Different users can utilize this statement with the aim of calculating the tax amount for any organization. This is because when a user finds out the actual financial figures, he/she can understand how much tax an organization has to pay. Going further, this financial document officially explains the reporting period of time in which a company may make a certain amount of income. Importance of Income Statement: An income statement is one of the major financial statements that report a company’s financial performance over a certain period. It is an entire component of a company’s financial statement and the result of the income statement shows the company’s net income or net loss. The purpose of preparing an income statement is to show