The income statement is one of the major financial statements used by accountants, financial institutions and business owners to determine entity profitability.
The income statement is sometimes referred to as the profit and loss statement (P&L), statement of operations, or statement of income.
The income statement is important because it shows the profitability of a company during the time interval specified in its heading.
In the tables that follow, the medians of each market segment were taken and converted into percentages for presentation. Of the 157 companies that reported there were none that only reported working in one segment. Each participant provided 2 or more services with 82% of the respondents reporting at least 4 of the services.
| DESCRIPTION | COMMERCIAL | RESIDENTIAL | WOOD DESTROYING | BED BUG | OTHERS | TOTAL |
| %of Income | %of Income | %of Income | %of Income | %of Income | %of Income | |
| Revenues | 100.00% | 100.0% | 100.00% | 100.00% | 100.00% | 100.00% |
| DIRECT COSTS | ||||||
| Technician Labor | 20.70% | 21.70% | 17.37% | 22.30% | 18.92% | 20.20% |
| Payroll Taxes | 1.98% | 2.00% | 1.74% | 2.39% | 2.22% | 2.06% |
| Health Insurance Technicians | 1.26% | 1.58% | 1.51% | 2.61% | 0.57% | 1.50% |
| Employee Benefits | 0.70% | 0.70% | 0.75% | 0.78% | 0.76% | 0.74% |
| Subcontract Costs | 2.00% | 2.00% | 1.75% | 2.47% | 1.95% | 2.04% |
| Total Direct Payroll Cost | 26.64% | 27.98% | 23.12% | 30.55% | 24.42% | 26.54% |
| Vehicle Leasing | 3.60% | 3.60% | 3.60% | 3.60% | 1.10% | 3.11% |
| Vehicle Fuel | 2.24% | 2.13% | 1.93% | 2.70% | 2.83% | 2.37% |
| Vehicle Repair and Maint. | 1.35% | 1.30% | 1.21% | 1.80% | 1.06% | 1.34% |
| Vehicle Insurance | 0.65% | 1.00% | 1.08% | 1.21% | 1.06% | 0.99% |
| Total Auto Expense | 7.84% | 8.03% | 7.82% | 9.31% | 6.05% | 7.81% |
| Materials | 8.00% | 6.30% | 15.40% | 2.00% | 10.72% | 8.13% |
| Supplies – Direct | 0.58% | 0.70% | 0.39% | 0.99% | 0.24% | 0.57% |
| Materials – Other | 0.57% | 0.31% | 0.34% | 0.48% | 0.43% | 0.44% |
| Equipment Expense | 0.08% | 0.10% | 0.06% | 1.69% | 0.08% | 0.40% |
| Total Material Cost | 9.23% | 7.41% | 16.19% | 5.16% | 11.47% | 9.54% |
| Liability Insurance | 1.10% | 1.10% | 1.44% | 1.99% | 1.73% | 1.47% |
| Workers Comp Insurance | 1.66% | 1.28% | 0.79% | 1.76% | 0.56% | 1.20% |
| Other Direct Costs | 0.75% | 0.70% | 0.62% | 1.11% | 0.54% | 0.75% |
| Total Other Costs | 3.51% | 3.08% | 2.85% | 4.86% | 2.83% | 3.42% |
| Total Direct Costs Calculated | 47.22% | 46.50% | 49.98% | 49.88% | 44.77% | 47.31% |
| Gross Profit | 52.78% | 53.50% | 50.02% | 50.12% | 55.23% | 52.69% |
| SELLING & MARKETING | % of Income |
| SELLING EXPENSE | |
| Wages – Sales | 2.21% |
| Commissions – Sales | 0.87% |
| Payroll Taxes – Sales | 0.31% |
| Health Insurance – Sales | 0.18% |
| Total Selling Expense | 3.57% |
| MARKETING EXPENSE | |
| Marketing – Traditional | 1.70% |
| Marketing – Digital | 3.50% |
| Marketing – Other | 1.10% |
| Total Marketing Expense | 6.30% |
| Total Selling & Marketing Expense | 9.87% |
| GENERAL & ADMIN: | % of Income |
| Officer Wages | 5.00% |
| Office Wages | 7.00% |
| Management Wages | 4.00% |
| G&A Empl Benefits – Health | 0.30% |
| G&A – Payroll Tax | 1.22% |
| Total General & Admin Wages | 17.52% |
| Office Rent | 2.00% |
| Computer Expense | 1.80% |
| Office Supplies | 0.50% |
| Office Printing | 0.20% |
| Office Postage | 0.36% |
| Bank Service Charge | 0.51% |
| Credit Card Charges | 1.34% |
| Professional fees – Accounting/ Legal | 0.94% |
| Recruiting Expenses | 0.05% |
| Payroll Preparation Fee | 0.13% |
| Dues & Subscriptions | 0.30% |
| Donations | 0.29% |
| TRAVEL & ENTERTAINMENT | |
| Meals & Entertainment | 0.27% |
| Travel | 0.15% |
| Total Travel & Entertainment | 0.42% |
| Utilities | 0.34% |
| Rubbish Removal | 0.02% |
| Telephone Expense | 0.16% |
| Wireless Communications | 0.57% |
| Depreciation | 2.43% |
| Other General & Admin | 2.73% |
| Total General & Admin | 32.61% |
| Total Expense | 42.48% |
| Operating Profit | 10.21% |
While the financial performance varied from company to company, the tables above depict the median company results for each category. These results are in line with the percentages we see for the various service lines in our portfolio of clients to whom we provide accounting services.
