No matter kind of company you’re running, you will need to produce accounts for every financial year which is called a Profit and Loss Sheet. These records will be purchases and sales and the expenses of running the business. Break down your expenses into different categories, and to calculate a total figure. This information will be required in order to collate a profit and loss account, which will show you, and the tax inspector, your net profit for the accounting year.
Now let’s look at how to put together a profit and loss account. Here are a list of tops to help you get started.
Click below to watch this quick training. In this example we show you in detail what a profit and loss sheet is and qualifying expenses your business my qualify for.
It’s important to remember that the burden of proof is on your the business owner so keeping accurate accounts is imperative. If you need assistance with reconciling your business account Karme is the best in bookkeeping.
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