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The income statement reports a corporation’s net income for the period of time indicated in its heading. The income statement is also known as the statement of income, statement of earnings, statement of operations, profit and loss statement, or P&L.
Parts of an Income Statement:
Revenues. *Selling products (net sales),*Providing services (net service).
Cost of Goods Sold. Costs of goods made by the business include material, labor, and allocated overhead
Gross Profit. Gross profit is defined as net sales minus the cost of goods sold. This is important because the corporation’s gross profit amount must be sufficient to cover its selling, general and administrative expenses and to provide a sufficient amount of net income.
Expenses. Cost associated with main business activities. Example of expenses will include supplies, rent, advertising, commissions for employees and agents, interest.
Net Income. A corporation is required to issue annual financial statements, but it is common for a corporation to prepare monthly financial statements for its management.
At Alvarez Tax Services, LLC we can provide you with this service.
The Internal Revenue Service has announced initial plans for processing tax returns involving the Earned Income Tax Credit and Additional Child Tax Credit during the opening weeks of the 2017 filing season. The IRS is sharing the information now to help the tax community prepare for the 2017 season, and plans are being made for a wider communication effort this summer and fall to alert taxpayers about the changes that will affect some early filers.
The action is driven by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that was enacted December 18, 2015, and made several changes to the tax law to benefit taxpayers and their families. Section 201 of this new law mandates that no credit or refund for an overpayment for a taxable year shall be made before February 15 if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return.
The change begins January 1, 2017 and may affect some returns filed early in 2017. For additional information, see the link below:
Our very own, Antonio Alvarez, Jr. was elected to the Board of Directors for the California Society of Enrolled Agents, Orange County Chapter. We are very proud of his accomplishment!
Antonio Alvarez will be presenting at a Payroll Tax Seminar hosted by The Employment Development Department on Thursday, June 23, 2016 in the city of Costa Mesa. Register for this seminar at edd.ca.gov. Spaces are limited so hurry to reserve your seat! Lunch will be provided.
See you there!