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Free Income Statement Template in Google Sheets (+ How to Use)

Creating an income statement can be costly and time-consuming for small and medium-sized businesses (SMEs). But did you know creating a monthly income statement template in Google Sheets can be hassle-free and as effective as a paid tool?

Whether you have an SME or you’re an individual trying to build a custom spreadsheet, our simple guide walks you through building a custom income statement in Google Sheets!

Check Out: Super Easy-to-Learn Udemy Courses to Master Google Sheets – at an unbelievable price!

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Who Uses an Income Statement?

This important financial statement is typically reviewed by internal and external users:

  • Internal users (e.g., board of directors, management) use income statements to evaluate the state of the business and make decisions in the hopes of making a profit.
  • External users (e.g., investors, competitors) use income statements to assess a company’s potential for expansion and profitability. They may also use it to study a company’s spending patterns and success parameters.

Elements of an Income Statement

Since an income statement tracks the income and expenses of a company over time, it usually includes sections that relate to these two main accounts. Some main categories of an income statement include:

  • Revenues
  • Expenses
  • Gross profit
  • Gains
  • Losses
  • Net Income/Loss

Why Use a Google Sheets Income Statement Template?

There are plenty of advantages to using Google Sheets for income statements (including calculating compound interest for cash balances).

1. Accessibility

Since Google Sheets is cloud-based, you can manage data on any device and at any time. All you need is internet access to access your financial data.

2. Flexibility

The flexibility of Google Sheets can’t be understated: It’s simple to create a financial statement spreadsheet from scratch, especially one that reflects your individual needs.

3. Ease of Use

For many small businesses, having a complex system for income statement creation is counterproductive. Creating a statement of income in Google Sheets is a straightforward process that requires little effort.

4. Compatibility

Whether it’s iOS, Android, Windows, or Linux, Google Sheets can be used with any operating system. This is great news if your company isn’t fixated on a single platform and users have different devices.

How to Create a Monthly Financial Statement Template in Google Sheets

Please note: If the format of this income statement isn’t a perfect fit for your specific requirements, users are free to modify the columns and values to meet their needs. However, you must ensure that the nature of your income statement remains true to the principles in the following guide.

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Open a New Sheet

Open a new Google Sheets template and rename it as “Income Statement” so it’s easier to locate on your device.

Create a Header

Step 1: Select cells A1:N1 from row 1, click on the merge cells icon from the top menu to merge them, and then write your company’s name.

create header in google sheets

Step 2: Merge cells A2:N2 from row 2 and write “Income Statement.”


Step 3: Merge cells A3:N3 from row 3 and enter the financial year for the statement (i.e., FY23).


Step 4: Finally, color the merged cells by selecting all of them and then clicking on the fill color icon.

fill color icon google sheets

Here’s what the finished header should look like:

creating header in google sheets income sheet

Once you’ve created a header for your sheet, you can go ahead and create the following sections:


Step 1: Create a revenue section with the following values:

create revenue section for income statement google sheets

Step 2: Use the “=” function to find all months’ gross and net revenue (Jan-Dec).

  • The gross revenue is the sum of all sales. In this screenshot, I’ve used the function =B5+B6+B7 to find it (You can also use the SUM function to do this).
how to find sum of column in google sheets
  • The net revenue is the sum of all sales minus the sales returns and allowance. In this screenshot, I have used the function =B10-B8-B9 to subtract the sales returns and allowance from the gross revenue.
how to format net revenue in google sheets

You can copy and paste the formulas for gross and net revenue (seen above) into the gross and net revenue columns for all other months.

Gross Profit

Step 1: Create a gross profit section with the following values to calculate the COGS and then deduct it from the net revenue:

how to find cogs google sheets income statement

Step 2: To calculate COGS, use this function =B13+B14+B15-B16-B17-B18-B19 (Beginning Inventory + Purchases + Freight In) – (Ending Inventory + Purchase Discounts + Purchase Returns + Purchase Allowance).

Step 3: Next, use this function =B11-B20 to deduct the COGS from the net revenue that you calculated earlier. This will give you the gross profit.

deduct COGS from net revenue google sheets

Note: You can copy and paste the COGS and gross profit formulas into the COGS and gross profit columns for all other months.

Operating Expenses

Step 1: To calculate total operating expenses, create an operating expenses section with the following values:

operating expenses in google sheets

Step 2: Use this function =SUM(B23:B32) to calculate the total operating expense.

calculating operating expenses in income statement

Step 3: Subtract the total operating expense from the gross profit using this function =B21-B33. This will give you the total operating income before tax.

how to calculate total operating income before tax

Step 4: Enter taxation-related data below the total operating income column. You can create multiple columns depending on your requirements. In this case, I have entered 17% as a placeholder value.

tax data below total operating income column sheets

Step 5: Finally, calculate the net profit by subtracting the tax from the total operating income before tax using this function =B34-(B34*B35).

calculating the net profit in income statement sheet

Note: If you’ve added more rows or columns to your sheet, always double-check the cell references in all the applied functions to accurately calculate totals for each column.

Frequently Asked Questions

What Does an Income Statement Do?

An income statement shows a company’s income and expenses and reports its overall financial performance. A company’s revenue, profits, losses, and expenses are summarized in these financial reports for a specific time period, typically a tax year (in which case, an income statement may also be referred to as a 12-month income statement).

A cash flow statement only considers the ins and outs of the business’s revenue, while a generic income statement demonstrates a company’s capacity for cost control, profit, and sales.

Are There Other Names for an Income Statement?

You might know income statements by other names, including:

  • Profit and loss (P&L) statement
  • Statement of operations
  • Earnings statements
  • Statement of Financial Result or Income

Additional Resources

In addition to the income sheet template, there may be other areas of your business to track. We’ve included a list of resources to help you set up a tracking mechanism in Google Sheets – for every important aspect of your business:

If you want to use all these templates and save time, check out our range of pre-built templates. Don’t forget to use the promo code SSP to save a whopping 50% on each of them!


No matter how small a business is, an income statement is crucial to every business’s financial statements. It reveals important metrics and illustrates how well the company is doing, including how your revenue, cost of goods sold, and operating expenses are expanding.

It’s easy to create your own financial statements template in Google Sheets. Whether you create the monthly income statement example in the simple step-by-step tips or access our downloadable template, you’ll have more time to focus on your business!

Access our Google Sheets financial statements template for free.

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