Ok, an important part of running your art business is to be able to understand your financial statements. You may get these statements from your accounting system, your accountant, bookkeeper or even on your phone! In this article I am going to take a look at one of the most basic yet most useful reports – the Income Statement.
What’s an income statement about?
The name Income Statement may be a bit misleading as this financial report covers not only income but expenses as well. Here is the basic idea behind the Income Statement: Sales (Revenues) minus Expenses equals Profit/Loss. If your Sales (Revenue) are greater than your expenses then you have a profit, if your expenses are greater than you Sales (Revenue) then you have a loss.