What is a Trended Income Statement?

Trended Income Statements are considered core financial reports and are used by executives and branch managers to track monthly trends for revenues, expenses and profitability. Some of the main functionality in this type of report is that it dynamically expands months across the columns based on the period you run the report for. The rows in the reports are collapsed to provide an easily readable summary. Users click on the ‘+’ sign on the rows to expand and see account detail. You find an example of this type of report below.

Purpose of Trended Income Statements

Credit Unions use Trended Income Statements to give executives both detailed and summarized views of revenues, expenses, margins and totals for each month up to the current period. When used as part of good business practices in Executive- and Financial Planning & Analysis (FP&A) departments, a company can improve its strategies and profitability, and it can reduce the chances that leaders make poor decisions because they don’t see if a figure is a trend or an outlier.

Example of a Trended Income Statement

Here is an example of a Trended Income Statement with dynamic listing of year-to-date months and rows that can expand/collapse to simplify analysis as well as actual to budget comparisons.

Example of a Trended Income Statement for Credit Unions

Example of a Trended Income Statement for Credit Unions

You can find hundreds of additional examples here

Who Uses This Type of Report?

The typical users of this type of report are: Executives, Regional Managers, Branch Managers.

Other Reports Often Used in Conjunction with Trended Income Statements

Progressive Executive- and Financial Planning & Analysis (FP&A) departments sometimes use several different trended financial statements, along with income statement variance reports, balance sheets, cash flow statements, financial dashboards, budget models and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples