Why Should Every Employee Understand an Income Statement?
Why Should Every Employee Understand an Income Statement? Your Secret Weapon for Making Smarter Business Decisions Understanding how your company makes—and loses—money isn’t just useful, it’s transformative. Whether you’re designing software, managing campaigns, or supporting customers, the income statement reveals the financial DNA of your business. This knowledge helps you make decisions that actually move the needle, align your work with what matters most, and accelerate your career growth. What Is an Income Statement (And Why It’s Your Business GPS)? An income statement is like a financial report card showing how your company performed over a specific period—monthly, quarterly, or yearly. Think of it as your business GPS: it shows where you’ve been financially and helps navigate where you’re going. The Income Statement Visual Framework REVENUE (Top Line) ↓ - COST OF GOODS SOLD (COGS) ↓ = GROSS PROFIT (Efficiency Score) ↓ - OPERATING EXPENSES (OpEx) ↓ = OPERATING PRO...