Income Statement Order, or IS Order, is a common business practice used to list expenses and other items on an income statement in order of their impact on the statement. This practice is beneficial because it allows businesses to focus on the most substantial items first when assessing the overall financial health of their company. It is also important for helping analyze period-to-period performance, as well as comparing the relative magnitude and nature of various sources of income and expenses. Finally, it can be useful for determining how various operating and non-operating items affect profitability. Put simply, IS Order helps businesses make sense of their finances, ensuring that they get the most out of their resources.