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What is the Income Statement?
The Income Statement is one of the principal financial reports available on iClips. In summary, this report demonstrates the operations that your agency has performed in a given period. In it, we visualize the revenues, expenses, investments, costs, etc.
To access it, follow the path Financial > Reports > Income Statement.
Before accessing the report, you may define the best form of visualization for your objectives. You can do it in the filter fields.
In the Detailed view, it is possible to see each subcategory result according to the entries made.
The Summary view simplifies the numbers by bringing only the categories.
Were you in doubt about which view to choose between Competence, Competence performed, Entry/Exit, and Receivable/Payable, and how to compare this visualization with financial entries? See this infographic:
How to use the Income Statement in an advertising agency?
For advertising agencies, the Income Statement will help to view sales over a given period through competency. For example, Monthly Fee contracts that are closed in certain months and are paid over 12 months.
That will help the manager to have a broad view of the launches of that period. For this preview to be available, the analysis will be made in the first option of the navigation tabs:
When observing the cash (or Competence-Based) regime, unlike the accrual basis, the visualization is made through the amount that effectively entered the agency's cash in that period. This analysis is significant, as we know that the work carried out in a given month (period) is not always paid on the same date.
How can the Income Statement help my analysis of onlend values?
Another analysis that can be made by the Income Statement is the distinction between the values that pass through the agency through on lending and what is the agency's real revenue. Onlending cases are common and create difficulties to distinguish from the resources that came into your cash.
To make this analysis, you can use the item Operating income. It will account for all income and expenses, whether operating or non-operating. In the Final result, non-operating values are disregarded.
Conclusion
To facilitate the understanding of this article (I know it has a lot!), here is a summary of the main reasons for using the Income Statement as a tool to support financial decision making:
- It's possible to analyze the company's sales through the competency filter.
- The manager will be able to compare the Predicted vs. Accomplished through the Competency reports vs. Performed competence.
- The difference between the Operating Result and the Final Result will indicate the transfer values that circulated through the agency.
Still need help? Just call us at help@rockcontent.com or the platform chat!