Consulting Income Statement Template

Once the categories match your business, enter revenue and expenses for the current month. If you don't track project costs in real time, pull your bank statements, contractor invoices, and billing records and work through each category. The Project Profitability sheet is where you'll spend the most setup time — enter each active engagement, its billed revenue, and direct costs. Everything rolls up to gross profit and net income in the main monthly sheet automatically. Copy the monthly structure forward and fill it in as the year progresses.

The two numbers that matter most in a consulting income statement are gross margin and net margin. Gross margin — revenue minus direct cost of services like subcontractor fees, direct project expenses, and billable travel — should typically fall between 50% and 80% depending on how much of the work you deliver yourself versus sub out. Solo consultants who do all their own work often run gross margins above 80%; firms that rely heavily on subcontractors or junior staff will run lower, typically 50–65%. Net margin, after all operating expenses, typically lands between 20% and 40% for a well-run firm. If your net margin is consistently below 15%, it usually means either that your billing rates are too low or that overhead — software, marketing, and administrative costs — has scaled faster than revenue.