Income Statement: Revenues (Financial Management for Music Retail)
Get straight with your revenue streams. An income statement is sometimes called different names, but it’s mostly referred to as a P&L. It’s a picture of the operating activity of your business for a period of time. Music store owners should look at their P&L every month. When you look at the revenue and operating section of your income statement, the most common revenue is sales, exclusive of sales tax. Find out how that ties to the cost of goods sold. Music stores are different than other retailers because there are other revenue streams that are material to your business. Be aware that your income statement should be formatted to break out what you earn through each of those income streams.