How to Visualize Income Statement Template in Excel?

An income statement is an essential tool for analyzing financial data.

It is one of the documents that you can use to make informed financial decisions. The income statement template in Excel enables you to create one for your financial data.

This blog will discuss how to create an income statement and analyze the data in Excel.

Table of Content:

1. What is an Income Statement?
2. Types of Income Statements
3. Purpose of Using an Income Statement
4. Best Graphs to Visualize Income Statement
5. How to Analyze Financial Data from Income Statements in Excel?
6. Benefits of Using an Income Statement
7. Importance of an Income Statement Template in Financial Analysis
8. Wrap Up

What is an Income Statement?

An income statement is a financial statement that allows you to analyze your financial data systematically. It contains information about the company’s revenues, expenses, net income, and other key financial indicators.

You can use it to analyze data for a specific period, such as a month, quarter, or year. You can also track your income and expenses and make better financial management decisions.

Businesses and individuals use the income statement to prepare their financial statements. Banks and other financial institutions use it to assess the financial position of their customers. In addition, investors use it to assess the performance of their investments.

Types of Income Statements

• Classified Income Statement

The classified income statement separates the company’s income and expenses into different categories. It allows for a detailed analysis of the company’s performance.

The categories may include operating income, non-operating income, cost of goods sold, operating expenses, and non-operating expenses.

• Comparative Income Statement

The comparative income statement shows the company’s income and expenses over two periods. It enables you to compare the company’s performance over time.

• Condensed Income Statement

The condensed income statement is a simplified version of the classified income statement. It shows the company’s total revenue and expenses without breaking them down.

• Cash Basis Income Statement

The cash basis income statement shows cash transactions. It does not include any non-cash transactions such as depreciation or amortization.

• Partial Income Statement

The partial income statement shows certain categories of income and expenses, such as revenues, expenses, and net income. It is used for smaller companies or companies with limited business activity.

Purpose of Using an Income Statement

• Convey Profitability

The income statement shows how much money the business has made or lost. Stakeholders can understand how the company is performing by looking at the income statement. It can help identify areas where you can cut costs or increase revenue. Thus, the business can become more profitable and lead to long-term success.

• Decision Making

You can use it to make informed decisions about a business’s operations. For example, if you identify that expenses are higher than revenue. You can look at the income statement to identify where you can make cuts.

• Financial Strategizing

You can use it to plan for the future and set yourself up for long-term success. By looking at the income statement, you can identify areas where you can focus your efforts. For example, you can see that the revenues are lower than the expenses.

Thus, focus on increasing the revenue. You may focus on marketing efforts, expanding the product line, or targeting a new market.

• Financial Performance Comparison

You can use an income statement to compare a company’s financial performance from different periods. This comparison can help you to identify areas of strength and weakness and inform future strategies.

Best Graphs to Visualize Income Statement

• Sankey Chart

The Sankey Chart displays the flow of income from one source to another. It is a great way to visualize a company’s or individual’s income and expenses. The Sankey Chart also helps identify trends and patterns in financial data.

You can use a Sankey Chart as an income statement projection template.

Example 1: Company Income Statement Template

• For example, you have financial data and want to observe how money is moving.

Income Sources	Income	Spending Sources	Spending	Amount
Domestic	Income	Taxes	Federal	991936
Domestic	Income	Taxes	State	295067
Domestic	Income	Savings	Stock	1932447
Regional	Income	Savings	Bonds	263979
Regional	Income	Savings	Cash	689532
Regional	Income	Salaries		1479664
Regional	Income	Food & Dining		24448
Regional	Income	Office		9409
Regional	Income	Travel		8481
Regional	Income	Fitness		4694
Pacific	Income	Health Insurance		3410
Pacific	Income	Bills & Utilities		4918
Pacific	Income	Other Expenses		76650

• Here is a Sankey Chart for the following company financial data.

Example 2: Personal Income Statement Template

• You can use a Sankey Chart to determine whether you are using your finances on relevant items.

Income	Budget	Categories	Spending	Amount
Salary	Total Income	Federal Taxes		7126
Salary	Total Income	State Taxes		1247
Salary	Total Income	Local Taxes		945
Social Security	Total Income	Spending	Housing	13497
Dividends	Total Income	Spending	Utilities	2290
Dividends	Total Income	Spending	Vehicle	4826
Property	Total Income	Spending	Gas	2254
Other Income	Total Income	Spending	Food	1754
Other Income	Total Income	Spending	Eating Out	495
Salary	Total Income	Spending	Household	5161
Salary	Total Income	Spending	Insurance	3260
Salary	Total Income	Spending	Alcohol	592
Salary	Total Income	Spending	Clothing	3133
Salary	Total Income	Spending	Entertainment	414
Salary	Total Income	Spending	Phone	1587
Salary	Total Income	Saving		7541

• Clustered Bar Chart

A Clustered Bar Chart is a great way to compare different income statement items. It enables you to see how much money you are making or losing. It is a perfect comparison graph for identifying strengths and weaknesses.

Example

Months	Income	Expenses
January	40134	8919
February	21757	10038
March	26950	8595
April	48140	10793
May	46486	9584
June	40333	9042

• The visualization will look like as follows:

• Sentiment Trend Chart

A Sentiment Trend Chart visualizes changes in income statement items over time. You can see how revenue, expenses, or net income changes have impacted the business.

• Multi-Axis Line Chart

A Multi-Axis Line Chart displays multiple lines with two or more axes. It is useful for visualizing complex data sets with multiple dimensions or variables. You can use it to compare the profitability between periods.

Example

Months	Orders	Sales	Profits
Jan	756	18766	18
Feb	485	18788	29
Mar	412	18743	24
Apr	607	18788	22
May	915	16406	19
Jun	413	17765	22
Jul	828	20532	26
Aug	611	20016	19
Sep	683	20122	18
Oct	886	20125	25
Nov	397	23783	21
Dec	408	22942	21

• Waterfall Chart

A Waterfall Chart shows the cumulative impact of changes in finances. You can pinpoint sections of the company where you can reduce expenditures and increase income.

Example

Stacks	Bridges	Amount
Sales	Mobiles	20025
Sales	Tablets	9746
Sales	PCs	7095
Service	Mobiles	9077
Service	Tablets	6650
Service	PCs	3959
Total Revenue	Mobiles	29102
Total Revenue	Tablets	16400
Total Revenue	PCs	11100
Cost of Goods Sold	Mobiles	-4630
Cost of Goods Sold	Tablets	-2360
Cost of Goods Sold	PCs	-2650
Marketing	Mobiles	-2150
Marketing	Tablets	-935
Marketing	PCs	-965
Salaries	Mobiles	-3360
Salaries	Tablets	-2340
Salaries	PCs	-1130
Wages	Mobiles	-3510
Wages	Tablets	-2390
Wages	PCs	-930
Operating Cost	Mobiles	-5460
Operating Cost	Tablets	-3700
Operating Cost	PCs	-1240
Taxes	Mobiles	-4180
Taxes	Tablets	-1800
Taxes	PCs	-640
Net Income	Mobiles	2750
Net Income	Tablets	3160
Net Income	PCs	5980

How to Analyze Financial Data from Income Statements in Excel?

Analyzing financial data from an income statement is a straightforward process. First, enter your income and expenses into the income statement template.

You can enter data from other financial statements, such as the balance sheet and cash flow statement.

Once you have entered your data into the template, you can begin to analyze it. You can track changes in your finances over time and project future income and expenses.

ChartExpo enables you to create a perfect income statement using the appropriate graphs. You can also use the template to identify areas for improvement.

Furthermore, it can also help you understand the financial impact of your income and expenses changes.

How to Install ChartExpo in Excel?

1. Open your Excel application.
2. Open the worksheet and click on the “Insert” menu.
3. You’ll see the “My Apps”.
4. In the office Add-ins window, click on “Store” and search for ChartExpo on my Apps Store.
5. Click on “Add” button to install ChartExpo in your Excel.

ChartExpo charts and graphs are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and create beautiful visualizations in a few clicks in your favorite tool.

Example

Let’s generate an income statement using the data below.

Income Sources	Income	Spending Sources	Spending	Amount
Domestic	Income	Taxes	Federal	991936
Domestic	Income	Taxes	State	295067
Domestic	Income	Savings	Stock	1932447
Regional	Income	Savings	Bonds	263979
Regional	Income	Savings	Cash	689532
Regional	Income	Salaries		1479664
Regional	Income	Food & Dining		24448
Regional	Income	Office		9409
Regional	Income	Travel		8481
Regional	Income	Fitness		4694
Pacific	Income	Health Insurance		3410
Pacific	Income	Bills & Utilities		4918
Pacific	Income	Other Expenses		76650

• To get started with ChartExpo, install ChartExpo in Excel.
• Now, click on My Apps from the INSERT menu.

• Choose ChartExpo from My Apps, then click Insert.

• Once ChartExpo is loaded. Click on “Sankey Chart” from the list of charts.

• Click “Create Chart From Selection” button after selecting the data from the sheet, as shown.

• The Sankey Chart will look like as follows.

• If you want to have the title of chart, click on Edit Chart, as shown in the above image.
• To change the title of the chart, click on the pencil icon that is available very next to Chart Header.
• It will open the properties dialog. Under the Text section, you can add a heading in Line 1 and enable the Show Give the appropriate title of your chart and click on Apply button.

• Let’s add the Prefix (e.g. $ Sign) with the numeric values in the chart.
• Click on the highlighted pencil icon. Expand the “Symbols” properties to add the Prefix value (e.g. $ sign).

• To change the node color, click on the pencil icon available with the node. Expand the Node properties and change color from the Node Color property. Click on the Apply button.
• For saving changes click on Save Changes. This will persist the changes.

• Final chart will look like as follow.

Insights

• Domestic sales accounted for most of the company’s income, which amounted to $3.22 million. Pacific sales were the least contributor in income, contributing $84.98 thousand. The total income of the company was $5.78 million. It was divided into separate categories: taxes, savings, and salaries.
• Salaries consumed the largest portion of the income, totaling approximately $1.48 million.
• Of the savings, they stored $1.93 million in stocks, and they invested $263.98 thousand in bonds. The remaining $689.53 thousand was held in cash.
• They spent $1.29 million on taxes. They designated $295.07 thousand to state taxes, and allocated $991.94 thousand to federal taxes.

Benefits of Using an Income Statement

• Shows the Effectiveness of Financial Strategies

An income statement reveals the effectiveness of the company’s financial strategies. It helps the stakeholders to understand the financial performance of strategies used and make informed decisions.

• Provides Detailed Financial Information

An income statement provides detailed financial information about the company. It includes information about the company’s revenue, expenses, profits, and losses. It also conveys information about assets and liabilities.

• Eases Financial Communication to Stakeholders

The income statement helps to ease communication with stakeholders. It provides detailed information about the company’s financial performance. This helps the stakeholders to understand the financial position of the company.

•  Provides Lending Institutions with an Unbiased View of the Company’s Financial Health

It provides detailed information that helps lending institutions evaluate the company’s financial position. This helps them decide whether to lend money to the company or not.

Importance of an Income Statement Template in Financial Analysis

• It helps you track your income and expenses, plan for the future, and make better decisions.
• You can use it to analyze changes in your income and expenses over time. This analysis can help you understand the financial impact of these changes. Thus you can make better decisions about how to manage your finances.
• It helps with preparing financial statements and assessing your financial performance.
• It helps track a company’s or individual’s profitability over a certain period. It also helps to identify areas of improvement or areas of concern in terms of profitability.
• It is used to assess the ability of a company or individual to pay back a loan. It also helps to assess the creditworthiness of a customer.

FAQs:

What is an income statement?

An income statement is a financial statement that records and analyzes the revenue and expenses of the company. It helps with measuring the financial performance of a business. It also helps the stakeholders to make informed decisions.

Does Excel have an income statement template?

Yes, Excel does have an income statement template. The template is designed to provide an easy-to-use format for creating an income statement. It can be customized to fit the specific needs of the user.

What is the template of the income statement?

An income statement template is a spreadsheet that allows you to visualize your income and expenses. You can use it to analyze your financial data in a systematic and organized way.

What is the purpose of using an income statement?

The primary purpose of an income statement is to provide an overview of a company’s financial health. It allows you to see how much the business has earned or lost over a period. In addition, it helps you assess whether the company is making a profit.

Wrap Up

An income statement is an essential part of a business’s financial statement. It provides detailed information about the company’s revenue, expenses, profits, and losses. Using an income statement template in Excel can help you track your income and expenses. Thus, it is an important tool for analyzing financial data.

Using an Excel income statement template, you can quickly analyze your financial data. You can also use it to make better decisions about the company’s future performance. Furthermore, you can gain insights into the profitability of your business and develop strategies for long-term success.

Are you looking for an easy and efficient way to analyze your financial data? An income statement template in Excel is the perfect solution. So, what are you waiting for? Get started today with ChartExpo.