Breaking Down The Income Statement:
To make sense of the Income Statement, let’s explore its key components:
Revenues (Sales): This is the total income generates from selling your product or services. It includes the revenues from all your customers, whether they pay in cash or credit.
Cost of Goods Sold/Services (COGS): This represents the direct costs associated with producing your product or delivering your services. It includes expenses like raw materials, manufacturing costs, or direct labor, and commissions paid to sales reps when selling a software service subscription.
Glaboross Profit: Gross Profit is calculated by subtracting your COGS from your revenues. It reflects the profitability of your core business operations before considering other expenses.
Operating Expenses: These are costs incurred to run your business day-to-day. Operating expenses include items like salaries, rent, utilities, and marketing expenses.
Net Profit/Loss: This is the final figure that indicates how much your startup has earned or lost during the period covered by the Income Statement. It’s calculated by subtracting the total operating expenses and COGS from revenues.
Creating the Income Statement:
To prepare an accurate Income Statement, you will be putting together your bookkeeping transactions and do the following:
-
Calculate Revenues: Sum up all the income generated from your product or services during the specific. It is important to recognize revenue in the correct period. In the case of a software subscription, let’s say a customer pays 12,000 of the payment is considered revenue in Year 1, or $1,000/month, and the remainder in Year 2. This example for a SaaS company shows the importance of differentiating between bookings vs billings vs revenues, as potential investors will assess the company on the accuracy of revenues during due diligence.
-
Calculate COGS: Determine the direct costs associated with producing or delivering your product/services. It is important to differentiate between direct costs that go into COGS and general operating expenses.
-
Calculate Gross Profit
-
List Operating Expenses: Identify and categorize all operating expenses incurred during the period.
-
Determine Net Income/Loss: This is the final calculation, at the bottom of your Income Statement.
It should look something like this:
Suggested Prompts
How can understanding the distinction between bookings, billings, and revenue improve financial analysis for a SaaS company?
What strategies can a business use to accurately allocate revenue over multiple accounting periods, especially in subscription models?
In what ways might variations in direct costs impact the gross profit margin, and how can a company optimize this aspect to improve overall profitability?
Module Comments 0 Analytics Settings
Introduction & Onboarding (Pre-Program)
MODULE
Welcome to Maple
MODULE
What is Launch?
MODULE
The Launch Team
MODULE
Important: Book Your Onboarding and Expectations Calls
Maple - Resources
MODULE
What to Expect
RESOURCE
Join Launch’s Slack Community
RESOURCE
Disco
RESOURCE
LaunchHub
RESOURCE
LaunchPad Calendar
MODULE
Topical Modules
MODULE
Payment Support
RESOURCE
Main Start-up Visa Program Website
RESOURCE
Get Connected to Our Network
Maple - Timeline & Catch Up Calls
MODULE
Bespoke Timeline
MODULE
Office Hours
MODULE
Book Your Milestones Planning Session
MODULE
Immigration Module Progress Updates
MODULE
Company Catchup and Resources
Welcome to Maple
MODULE
Reminder: Book Your Onboarding Call
MODULE
Summary
The Startup Visa Immigration Process
MODULE
Immigration - Workshop & Office Hour
MODULE
Immigration Webinar Slides
MODULE
Hire an Immigration Lawyer
Incorporation Process
MODULE
Incorporation - Workshop & Office Hour
MODULE
Incorporation Webinar Slides
MODULE
Hire an Incorporation Lawyer
Maple - Deliverables
MODULE
Immigration Module Progress Update
MODULE
Maple Deliverables
MODULE
Important: Monthly Company Update
Deliverables: Company & Incorporation
DELIVERABLE
Company Deliverable: Company Description
DELIVERABLE
Immigration Deliverable: Choice of Immigration Path
DELIVERABLE
Immigration Medical Exam
DELIVERABLE
Immigration Language Test
DELIVERABLE
Company Deliverable: Lean Canvas
DELIVERABLE
Incorporation Deliverable: Incorporation Certificate
DELIVERABLE
Company Deliverable: Member Chart
DELIVERABLE
Company Deliverable: Capitalization Table
DELIVERABLE
Company Deliverable: Pitch Deck
DELIVERABLE
Immigration Deliverable: Proof of Funds
MODULE
Company Deliverable: Due Diligence
DELIVERABLE
Immigration Deliverable: IMM Form 5475
MODULE
Thanks for Submitting Your Deliverables!
Deliverables Reminder: Monthly Company Updates
MODULE
Recurring Deliverable: Monthly Company Update
Deliverables: Immigration - Letter of Support, Permanent Residency and Work Permit
DELIVERABLE
Final Documents Submission
MODULE
Company Immigration Catchup: Permanent Residency Ready
MODULE
Letter of Support Request
DELIVERABLE
Permanent Residency and Work Permit Submission Dates
Resources
MODULE
Catchup, modules and programming
Module: Lifestyle Module
MODULE
Lifestyle Module
MODULE
Workshop: Housing and Real Estate
MODULE
Housing: Choosing Where to Live in Vancouver
MODULE
Housing: Choosing Where to Live Around Vancouver
MODULE
Housing: Accommodation and Rental
MODULE
Bank Account: Opening a Bank Account in Canada
MODULE
Education: Childcare
MODULE
Education: Schooling System in Canada
MODULE
Education: Types of Education Available
MODULE
Transportation: Drivers Licence
MODULE
Transportation: Ride-Sharing
MODULE
Transportation: Public Transportation
MODULE
Government Support: Spouses
MODULE
Government Support: Dependents and Children
MODULE
Health Care: The Health Care System in British Columbia
MODULE
Health Care: BC Services Card
MODULE
Health Care: Medical Services Plan (MSP)
MODULE
Health Care: Pharmacare
MODULE
Employment for Spouses and Dependents: Workshop with Pat Chaisang of Isempower
MODULE
Employment for Spouses and Dependents: Resume and Interviews
MODULE
Employment for Spouses and Dependents: Jobs Portal
MODULE
Employment for Spouses and Dependents: CO-OP
MODULE
Employment for Spouses and Dependents: Transferring Credentials to Canadian Employment
MODULE
Employment for Spouses and Dependents: Registering for SIN Number
MODULE
Lifestyle: Community
MODULE
Vancouver Festivals
MODULE
Lifestyle: Telecommunication and Internet
MODULE
Lifestyle: Groceries and General Store
Module: Non-Dilutive Sources of Funding in Canada
MODULE
Introduction: What is Non Dilutive Funding?
MODULE
Introduction: Resources
MODULE
Loans Available in Canada: Resources
MODULE
Loans Available in Canada: RBCx
MODULE
Loans Available in Canada: TIMIA Capital
MODULE
Loans Available in Canada: Clear.Co
MODULE
Loans Available in Canada: Canada Small Business Financing Program (CSBFP)
MODULE
Loans Available in Canada: WeBC - Loans for Young Women Entrepreneurs in British Columbia
MODULE
Loans Available in Canada: Other Loans (list)
MODULE
BDC: Introduction
MODULE
BDC: Technology Financing
MODULE
BDC: Small Business Loan
MODULE
BDC: Newcomer Entrepreneur
MODULE
BDC: Other Services
MODULE
Tax Credits: Scientific Research and Experimental Development (SR&ED)
MODULE
Tax Credits: Interactive Digital Media Tax Credit (IDMTC)
MODULE
Tax Credits: Other Tax Credits
MODULE
Talent: Innovate BC
MODULE
Talent: MITACs
MODULE
Talent: Student Work Placement Program
MODULE
Grants: NRC IRAP
MODULE
Grants: ISED
MODULE
Grants: Canada Digital Adoption Program
MODULE
Grants: CanExport SMEs
MODULE
Grants: CanExport Innovation
MODULE
Other Sources Available in Canada: Digital Technology Supercluster
MODULE
Other Sources Available in Canada: BC Government Procurement Concierge Program
Module: Fundraising in North America
MODULE
Resources: Fundraising in North America
Module: Hiring in Canada
MODULE
Hiring and HR practices in Canada
MODULE
Employee Benefits and Options
Module: Banking and Accounting in Canada
MODULE
Workshop: Banking in Canada
MODULE
Workshop: Accounting in Canada
MODULE
Startup Finance: Introduction to Clearbooks
Module: Financial Literacy
MODULE
Budget Sheets 101
MODULE
Breaking Down and Creating The Income Statement
MODULE
Understanding the Balance Sheet: A Financial Snapshot
MODULE
The Cash Flow Statement - What Really Matters
MODULE
Taxes 101: What to Know
Additional Resources
Maple - Program Wrap Up
Module: Lifestyle Module for Ontario
Lifestyle Module for Alberta (Calgary)