What it is
The multi-step format separates gross profit, operating income and the results of financing and other activity, so a reader sees where profit comes from. This workbook builds that statement for two years from a trial balance mapping and adds common-size percentages and the change between years.
You map each trial balance account to a statement line with a drop-down. The statement adds the mapped accounts with SUMIFS and ties net income to the trial balance. Unmapped accounts and sign errors show as checks that read Check until they are fixed.
When to use it
- When preparing or compiling financial statements from a trial balance.
- To present a function-based income statement with cost of goods sold and gross profit.
- For year-over-year review with common-size analysis.
What’s inside
- Inputs tab with 60 account rows, statement line drop-down and two years of amounts
- Statement tab: net sales through net income with subtotals
- Common-size percentage of net sales for each year
- Change in dollars and percent between years
- Tie-out to trial balance net income and an unmapped account check
Standard cited
This template follows US GAAP presentation / ASC 225. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Is a multi-step format required?
US GAAP does not require a single-step or a multi-step format for a private company. The multi-step format is common where cost of goods sold is a significant line, because it shows gross profit and operating income.
Where do I put depreciation?
Depreciation and amortization that sit in cost of goods sold or in a functional expense line stay there. Use the separate line only for amounts not already in another line, so nothing is counted twice.
Why does the tie-out show Check?
The usual causes are an account with no statement line mapped, a sign error on a contra account, or a double count of depreciation. The unmapped checks point to the first cause; the difference rows show the net effect.
Related templates
- Financial Statement Shell: Balance Sheet, Income, Equity and Cash Flows
- Trial Balance Template with Mapping (Excel)
- Common-Size Financial Statements Template
- Classified Balance Sheet Template (US GAAP)
Last updated 11/05/2026. All free templates.