A statement of financial performance template helps you present a clear summary of a business’s results over a specific period—typically a month, quarter, or year. This statement is often called an income statement or profit and loss (P&L) statement, and its core purpose is simple: show whether the business generated a profit by comparing income and expenses.

Small business owners use a statement of financial performance template to track profitability, spot changes in margins, and explain results to lenders, partners, or investors. It also supports budgeting and forecasting because it turns raw transactions into a structured view of performance.

What a Statement of Financial Performance Includes

Most financial statement templates for performance follow a standard layout. At a minimum, your statement of financial performance template should include:

• Revenue: sales, service income, subscription income, and other operating income
• Cost of sales (if applicable): direct costs tied to producing goods or delivering services
• Gross profit: revenue minus cost of sales
• Operating expenses: payroll, marketing, rent, software, insurance, and other day-to-day costs
• Operating profit: gross profit minus operating expenses
• Other income/expenses: interest income, interest expense, one-time items
• Net profit (or net loss): the bottom line for the period

If you want your template to be especially useful, include a side-by-side comparison (current period vs prior period) and a year-to-date column.

How It Connects to Other Financial Statements

A statement of financial performance does not stand alone. It connects directly to the other core reports:

• Balance sheet: net profit increases equity (or retained earnings), and key accounts (like assets liabilities) change based on how revenue was earned and expenses were paid
• Cash flow statement: profit is not the same as cash; the cash flow statement explains the difference by adjusting for timing, non-cash items, and investing/financing activity

When these three statements tie together, you get a complete picture: performance (income statement), position (balance sheet), and liquidity (cash flow statement).

How to Use a Template the Right Way

To get clean results from a statement of financial performance template:

• Choose a consistent reporting period (monthly is ideal for most small business teams)
• Use clear categories for expenses so trends are easy to spot
• Separate operating results from one-time items when possible
• Review results with context (compare to last month, last year, or budget)

Ledgeroo teaches this idea constantly: financial statements are not paperwork—they are a decision tool. A well-built statement of financial performance template helps you answer practical questions fast, like “Are we improving?” and “What’s driving the change?”

Final Thoughts

If you regularly update a statement of financial performance template, you’ll catch issues early, communicate results clearly, and build better financial habits. Pair it with a balance sheet and cash flow statement, and you’ll have the core system most business owners need to run smarter, not just harder.