What is the earnings statement?

The earnings report is a document that shows how much a person or company has earned during the specified period. In the case of companies, earnings revenues are usually issued so that investors can monitor the health of the company and are also known as income statements or profit and loss statements. For individuals, extracts from earnings classically accompany payouts, show employees how much money they earned and how much it was deducted. In both cases, the document is designed to be as clear and open as possible to understand how the company has arrived at a net income or reward, due to the original gross income or reward. Bottom line the statement shows net profit, the amount of money that the company actually earned after all its expenditure. Expenditures may vary from basic advertising for the cost of a new acquisition, and shareholders are usually interested in costs, as they may indicate whether the company is responsible.

Personal earnings, such as a statement that is seen in the payout, will provide basic information about how many hours someone worked and at what rate and deducts for health insurance companies, taxes, pension accounts, etc. Many revenue statements also show employees how many days and leave accumulated. Bottom line this statement shows the network or take a reward home to which the employee is entitled to all deductions.

In the United States, people can also receive earnings reports from social security administration. These statements show how much someone has earned during their lives and how much has been paid for social security. In dependence on the amount paid, the person will be entitled to reward the social security remuneration each month. These documents are commonly sent at the age of retirement, although people can at any time apply for a copy of their proceeds from the Social Administrationsecurity.

It is important to carefully check the income statement, whether it be the income of the company or individual. People should look for obvious mistakes or discrepancies that indicate accounting problems, and in the case of personal statements, such errors should draw attention to the statement of earnings at the accounting department. For example, someone can note that he or she worked overtime, but did not receive overtime reward, or that the incorrect amount was deducted for a pension plan sponsored by a company.