An income statement is one of the three (along with balance sheet and statement of cash flows) major financial statements that reports a company’s financial performance over a specific accounting period.  The process involved in preparing an income statement includes picking a reporting period, generating a trial balance report, calculating your revenues, calculating cost of goods sold, calculating  the gross margin, totaling operating expenses and calculating total income.   Our accountants in West LA help you track the revenues and expenses in order to determine the performance of the company.