{"id":10609,"date":"2022-12-27T18:28:57","date_gmt":"2022-12-27T12:58:57","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=10609"},"modified":"2023-05-30T17:56:59","modified_gmt":"2023-05-30T12:26:59","slug":"income-statement","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/","title":{"rendered":"Income Statement: Meaning, Importance and Working"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d9e22e250a2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d9e22e250a2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#What_is_an_Income_Statement\" >What is an Income Statement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Why_is_an_Income_Statement_so_Important\" >Why is an Income Statement so Important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Working_of_Income_Statement\" >Working of Income Statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Incomes\" >Incomes\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Revenue\" >Revenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Other_Income\" >Other Income<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Expenses\" >Expenses<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Finance_Cost\" >Finance Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Employee_Benefits_Expense\" >Employee Benefits Expense<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Depreciation_and_Amortization\" >Depreciation and Amortization<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Profit_or_Loss_Before_Tax\" >Profit or Loss Before Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Tax_Expenses\" >Tax Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Profit_or_Loss_After_Tax\" >Profit or Loss After Tax\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Income_Statement_Format\" >Income Statement Format<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#What_is_an_income_statement\" >What is an income statement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#What_are_the_three_parts_of_an_income_statement\" >What are the three parts of an income statement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#What_is_the_difference_between_income_and_revenue\" >What is the difference between income and revenue?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/income-statement\/#Why_is_income_statement_important_for_businesses\" >Why is income statement important for businesses?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_Income_Statement\"><\/span><b>What is an Income Statement?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The income statement is the first of a business\u2019s three most important financial statements. It shows the profits and losses that a business earned over a period of time. For this reason, it is also called the Profit &amp; Loss Account.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The income statement is also the first statement that is released publicly by companies, and you can view the income statements of all publicly listed companies on the internet. (Yes, <\/span><i><span style=\"font-weight: 400;\">all <\/span><\/i><span style=\"font-weight: 400;\">public companies!)\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, <\/span><a href=\"https:\/\/www.ril.com\/getattachment\/629a094a-c224-4e2b-b3c5-ac33dde6df99\/Financial%20performance%20for%20the%20quarter\/half%20year%20ended%2030%20Sep,%202022.aspx\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Reliance\u2019s income statement<\/span><\/a><span style=\"font-weight: 400;\"> also called its Unaudited Condensed Financial Results, is released on its investor relations site.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_income_statement&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Check out RazorpayX<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_an_Income_Statement_so_Important\"><\/span><b>Why is an Income Statement so Important?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An income statement gauges a business\u2019s financial performance and health. It shows <\/span><span style=\"font-weight: 400;\">how the business\u2019s money is being spent and how much return it brings. It also highlights problem areas and inefficiencies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, let&#8217;s say Mrs Pay, the owner of Razor Bakery, observes from her Income Statement that she is spending too much money on butter, and this expense is driving profits down even though her revenue is high.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now that she knows exactly why her revenue is not translating into profits, she can choose to cut down on her butter expenses by purchasing from a different supplier or hiking the prices of her baked goods to cover the cost of the butter.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Working_of_Income_Statement\"><\/span><b>Working of Income Statement<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An income statement is divided into income and expenses, followed by profit and loss calculations.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Incomes\"><\/span><b>Incomes\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The income section of your income statement includes the following line items:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Revenue\"><\/span><span style=\"font-weight: 400;\">Revenue<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Revenue is the money that your business makes from the sale of goods and services, the main source of income for your business. It may also be called \u201cValue of sales of goods and services\u201d or \u201cRevenue from operations\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A business\u2019s revenue should ideally be greater than, or at least equal to its total expenses. When the revenue earned from sales equals the cost of sales, it is called the <\/span><b>breakeven point. <\/b><span style=\"font-weight: 400;\">It is only after this breakeven point that your business starts becoming profitable.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Other_Income\"><\/span><span style=\"font-weight: 400;\">Other Income<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A business might earn money from sources other than the sale of goods and services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The money earned from Other Incomes will never be as much as the main revenue, but it is a good source of supplementary income for a business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This line item might also include income from interest or dividends. If your business invests in bonds, stocks, or mutual funds, it is probably earning money from these investments and must be shown on the income statement.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_income_statement&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Check out RazorpayX<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Expenses\"><\/span><b>Expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">After Incomes comes the Expenses section, where your accountant shows how your business spent the money it made.<\/span><\/p>\n<p><span style=\"font-size: 25.992px; color: #111111;\">Cost of Sales<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cost of sales, or cost of goods sold, or cost of materials consumed, is the amount of money that your business spends on actually producing the goods or services that it sells.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses that offer services, this amount would include salaries, the cost of running computers, or other technology used to provide the services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A business in its initial stages would see a high cost of sales, since operations are new and not as well optimized as can be.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Finance_Cost\"><\/span><span style=\"font-weight: 400;\">Finance Cost<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Another line item under the expenses section could be the finance costs or cost of financing. This is the money spent on borrowing money, like interest paid for loans. The more money a business borrows, the more it spends on financing those loans!<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Employee_Benefits_Expense\"><\/span><span style=\"font-weight: 400;\">Employee Benefits Expense<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The money that a business spends on its employees is included in this line item. It could be money spent on group insurance, contributions to Provident Fund, and staff welfare.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is important to make sure that your business puts the welfare of its employees first. Retaining talent is crucial to the success of any business.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Depreciation_and_Amortization\"><\/span><span style=\"font-weight: 400;\">Depreciation and Amortization<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The value of assets owned by the business is subject to reduce every year \u2013 this decrease in value is called depreciation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While depreciation is the reduction in the value of tangible assets or those assets which you can touch, amortization is the reduction in the value of intangible assets or those assets which cannot be touched.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Intangible assets include patents, copyrights, and goodwill.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This expense is unavoidable. The only asset that does not experience depreciation is land and property since land constantly increases in value over time.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Profit_or_Loss_Before_Tax\"><\/span><b>Profit or Loss Before Tax<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In this line item, the total expenses are deducted from the total income. If the value is positive, then the business has made a profit. If the value is negative, it has made a loss.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since tax is an unavoidable expense that the business has to incur, profit before tax is a good way of understanding how your business has handled controllable expenses.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_income_statement&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Check out RazorpayX<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tax_Expenses\"><\/span><b>Tax Expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In this section, the total amount of taxes paid by the business is calculated and listed, so it can be deducted from the Profit Before Taxes amount.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Taxes paid by the business could include TDS, TCS, GST, and Income Tax \u2013 it is an expense for the business. Since taxes are legally enforced, no business can avoid paying taxes.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Profit_or_Loss_After_Tax\"><\/span><b>Profit or Loss After Tax\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you deduct tax expenses from the profit before tax amount, you will get the final profit for the period for your business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the amount that is left behind after paying all expenses and taxes \u2013 the final amount that can be distributed amongst the owners or reinvested into the business.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If this value is a negative figure, the business\u2019s expenses are more than the income and it has made a loss.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In publicly listed companies, this profit is divided among the many shareholders of the company as EPS or Earnings Per Share. This final figure is the primary way of knowing the profitability of a business.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Income_Statement_Format\"><\/span>Income Statement Format<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Particulars<\/b><\/td>\n<td><span style=\"font-weight: 400;\">30 Sep \u201822<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30 Sep \u201821<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Income<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Revenue<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other Income<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><b>Expenses<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cost of Goods Sold<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Finance Cost<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Employee Benefits Expenses<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Depreciation and Amortization<\/span><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><b>Profit\/Loss Before Tax<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><b>Tax Expenses<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><b>Profit\/Loss After Tax<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/?r=blog_cta_business_banking_income_statement&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Check out RazorpayX<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"rank-math-rich-snippet-wrapper\"><div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_an_income_statement\"><\/span>What is an income statement?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The income statement is the first of a business\u2019s three most important financial statements. It shows the profits and losses that a business earned over a period of time. For this reason, it is also called the Profit &amp; Loss Account. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_are_the_three_parts_of_an_income_statement\"><\/span>What are the three parts of an income statement?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The three parts are: income, expenses and profit\/loss. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_income_and_revenue\"><\/span>What is the difference between income and revenue?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Revenue is the money earned by a business from sales of goods or services, or its primary moneymaking activities. A business might earn money from sources other than sale of goods and services. Income is the total money earned by the business, including both revenue and other incomes. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-4\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why_is_income_statement_important_for_businesses\"><\/span>Why is income statement important for businesses?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An income statement gauges a business\u2019s financial performance and health. It shows the business\u2019s revenues, expenses, profits, and losses over a period of time. Income statements are generally prepared on a quarterly or half-yearly basis, and so it provides regular insight into the financial performance of a business.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is an Income Statement? The income statement is the first of a business\u2019s three most important financial statements. It shows the profits and losses that a business earned over a period of time. For this reason, it is also called the Profit &amp; Loss Account.\u00a0 The income statement is also the first statement that<\/p>\n","protected":false},"author":106,"featured_media":10610,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[367],"class_list":{"0":"post-10609","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-accounting-for-founders"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10609"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/10610"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}