Whether you have your own business or just for your personal use, making your own income statement is a crucial part of tracking your financial progress. You can start by checking to see exactly how much money you make in any given month as well as what your expenses are. Keep in mind that for many of you, these two factors will vary month to month which is why it is such a good idea to make an income statement throughout the course of 12 months. By tracking your finances for an entire you are able to see the average of how much you have coming in and how much you have going out. By seeing this, you can start to improve because everything will be laid out in front of you. When making your own income statement, try to be as specific and organized as possible; I find that using a spreadsheet is quite effective.