An income statement shows the revenue and expenses of your operation over the course of a year.
The difference in revenue and expenses is the net farm income. Use this template, adapted from Northwest Farm Credit Services and the U.S. Roundtable for Sustainable Beef, to track these items for the year.
Your income statement is an important baseline for your operation to understand your potential profitability before taxes. Without a margin goal, businesses tend to under-manage their expense profile. Some expenses are fixed, but focusing on each expense category can generate innovation in your operation that leads to greater profitability.
Download the Income Statement Worksheet.
