What does bottom line mean on a financial statement?

The bottom line refers to the net income reported at the bottom of the income statement. The income statement has a general format and, although there are multiple variations of layouts, all of them result in net income at the end of this financial statement .

How do you write an income statement?

Your income statement follows a linear path, from top line to bottom line. Think of the top line as a “rough draft” of the money you’ve made—your total revenue, before taking into account any expenses—and your bottom line as a “final draft”—the profit you earned after taking account of all expenses.

What is the top line of your income statement?

As you move down your income statement, you’ll see that amount chipped away, used to pay for the cost of creating your products or services and keeping your company running. This is the top line of your income statement. A lot of business owners focus their attention on the bottom line—their net profit. But your sales revenue is important, too.