Canadian Income Statement Template
A free, auto-calculating income statement template for Canadian businesses, aligned to ASPE terminology.
- Accounting standard
- ASPE (CPA Canada Handbook, Part II)
- Financial year
- Corporation-chosen fiscal year-end (up to 53 weeks); many use 31 Dec
- Currency
- CAD (C$)
- Filed with
- Corporations Canada (annual return); CRA (T2)
| 2026 | 2025 | |
|---|---|---|
| Revenue | C$850,000 | C$850,000 |
| Cost of sales | C$510,000 | C$510,000 |
| Gross profit | C$340,000 | C$340,000 |
| Selling expenses | C$95,000 | C$95,000 |
| General and administrative expenses | C$130,000 | C$130,000 |
| Income from operations | C$115,000 | C$115,000 |
| Interest expense | C$12,000 | C$12,000 |
| Income before income taxes | C$103,000 | C$103,000 |
| Income tax expense | C$28,000 | C$28,000 |
| Net income | C$75,000 | C$75,000 |
Download this template
How to Fill In a Canadian Income Statement Template
An income statement (also called a profit and loss statement) shows whether a Canadian business made money over a period, and where the costs sat between cost of sales, operating expenses, interest and tax. It is usually the first statement a bank, accountant or the CRA will look at.
This template follows the ASPE presentation used by most private Canadian corporations, running from revenue down to net income with each subtotal calculated automatically as you enter figures.
What is an income statement?
An income statement reports a business’s revenue, expenses and resulting profit or loss over a specific period — typically a fiscal year or quarter — as distinct from a balance sheet, which reports a position at a single point in time.
What to include
- Revenue — total income earned from the corporation’s ordinary business activities during the period.
- Cost of sales — the direct costs of producing the goods or services sold.
- Gross profit — revenue less cost of sales, showing underlying trading margin.
- Selling expenses — costs of marketing and selling the product or service.
- General and administrative expenses — overhead costs such as office, admin staff and professional fees.
- Income from operations — gross profit less selling and administrative expenses.
- Interest expense — the cost of servicing loans and other debt.
- Income before income taxes — income from operations less interest expense.
- Income tax expense — the corporation’s tax charge for the period.
- Net income — the final result after all expenses, interest and tax.
Step-by-step guide
- Enter total revenue earned from ordinary business activities for the period, excluding sales tax collected on behalf of the CRA.
- Enter the direct cost of sales — materials, direct labour or cost of goods purchased for resale — so the template calculates gross profit.
- Enter selling expenses such as advertising, sales commissions and delivery costs.
- Enter general and administrative expenses such as rent, office costs, insurance and admin salaries, so income from operations calculates automatically.
- Enter interest expense on any loans, lines of credit or long-term debt to reach income before income taxes.
- Enter income tax expense for the period — your accountant can confirm this figure once the T2 return is prepared.
- Review the calculated net income figure against your bank statements and prior-year comparative to check it looks reasonable before sharing the statement.
Canada-specific rules
Most private Canadian corporations prepare their income statement under ASPE (CPA Canada Handbook, Part II), which is what this template follows. Publicly accountable enterprises must instead prepare a statement of comprehensive income under full IFRS (Part I), which can include additional items such as other comprehensive income that fall outside a standard ASPE income statement.
The figures on this statement feed directly into the CRA T2 corporate income tax return, where they are reported as GIFI (General Index of Financial Information) schedules rather than filed as a separate standalone statement — there is no separate public filing of the income statement itself for most private corporations.