Gather your revenue records for the period
List all income sources
Add total revenue
Gather all expense records for the period
Separate expenses into categories such as cost of goods sold, operating expenses, interest, and taxes
Add total expenses
Subtract total expenses from total revenue
Calculate gross profit if needed by subtracting cost of goods sold from revenue
Calculate operating profit by subtracting operating expenses from gross profit
Calculate net profit by subtracting all remaining expenses from total revenue
Format the statement with revenue, expenses, and profit sections
Review all figures for accuracy
Compare the statement with supporting documents
Save the final statement for reporting or tax purposes