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Self employed accounts
financial profit statement spreadsheet
The profit and loss
account templates are a summary of business transactions in a profit
statement for a given period -
normally 12 months. By deducting total expenditure from total
income, the profit spreadsheet shows on the "bottom line" whether your
business made a profit or loss at the end of that period.
A profit
and loss account is produced primarily for business purposes, how
the business is performing. But most of the information is also used
by HM Revenue & Customs to work out your tax bill. In this
financial accounting software the financial software uses the
automated entries in the profit & loss account to complete the self
assessment tax return.
No Entries Required:
The monthly profit and loss templates are fully automated
by the financial accounting
software which prepares the self employed profit & loss account from the entries
made to the sales excel spreadsheet and the
purchase excel spreadsheet
All the
financial information is generated automatically from the sales, purchases and
payroll sheets each month to produce a monthly profit and loss account and the
annual profit & loss account to date as shown in the profit and loss example
shown below.
Having a
profit and loss account up to date, available in real time enables progress to a
successful financial result to be monitored and should banks or other
institutions request up to date self employed accounts then you have exactly
that, self employed accounts at the touch of a print button.
Having an up to date profit
statement available, especially for new start up business, can seriously impress
potential lenders to enable the start up business in particular provide the
confidence to financial institutions to enable arrangements to stave off
possible under capitalisation issues.
This is the screenshot of the simple
self employed profit and
loss account templates as appearing in the financial accounts section of the financial
accounting software clearly stating the monthly financial profit and loss.
The income calculation on the profit
spreadsheet shows the gross sales figure, cost of sales to produce the trading
profit and after deduction of the financial expenses the the profit and loss
templates show the net taxable profit or loss.
Financial profit statement example
The business accounts statement is
crucial to performing the income calculation stating the trading profit and
financial profit to grow the business. Statistically the majority of
small businesses most of which are self employed go out of business within 3 years of start up
making the profit spreadsheet an essential business tool. The 2 major
reasons for this disastrous track record of new start up businesses are a lack of
profits and under capitalisation.
FINANCIAL PROFIT FORECAST
In addition to an automated
monthly profit and loss account the actual figures are then used by the
Accounting Software to generate, automatically performs an income calculation to
produce the self employed accounts profit forecast for each month
and the full year. No entries are required to produce the forecast profit
statement
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Forecast Profit and Loss Account |
Total Year 5 April 08 |
Apr-07 |
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0 |
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Sales Turnover |
0 |
0
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Investment Grants |
0 |
0 |
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Cost of Sales |
0 |
0 |
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Gross Profit / Trading Profit |
0 |
0 |
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General Expenses |
0 |
0 |
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Operating Profit |
0 |
0 |
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Interest received |
0 |
0 |
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Profit (Loss) before Tax |
0 |
0 |
Keeping a tight rein on the profit
and loss account, produced automatically by the financial accounting software,
gives you control over the business pattern and the opportunity to reverse
adverse trends immediately they appear. Small business finance software that
produce a profit and loss account are an essential element that no new start up
business should be without. The profits accounts statement puts the owner in
control without which success dives into the realm of guesswork. This information is
then used to calculate the likely year end tax liability which is transferred to
the actual profit and loss account, added to drawings and forms the essential
elements of your very own FINANCIAL BUSINESS HEALTH CHECK
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Actual Profit (Loss) before Tax |
0 |
0 |
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Financial Business Health Check |
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Self Employed Drawings |
0 |
0 |
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CIS Tax deducted |
0 |
0 |
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Income Tax & NI Liability |
0 |
0 |
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Financial Health Check |
0 |
0 |
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Capital introduced |
0 |
0 |
DIY Accounting also recommend that
when using the self employed accounts and viewing the profit & loss account sole
traders also enter their drawings in either the Health check row above or the
Cash and Bank spreadsheets. This gives an instant view of how much money is being taken out of
the business compared with the profit & loss being achieved and forecasts
the financial future so that You, the Business owner, can be pro-active in
achieving the desired financial performance.
STOCK CONTROL
Another optional feature of the self
employed accounts is Stock Control providing a basis to enter the physical
stock value each month and at the year end. The stock calculation is set up to
calculate stock losses and is also important for the year end accounts. An essential tool for in particular retail business to maintain
control over potential stock losses.
When a business buys and sells stock
the net taxable profit takes account of differences between opening stock and
closing stock. The profit statement does this calculation by adding opening
stock to the purchases and deducting the year end closing stock to calculate the
cost of sales. Sales turnover minus cost of sales equals the gross profit from
which business expenses are deducted to calculate the profit statement net
taxable profit.
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Accounting Software "Example of the self
employed accounts financial profit statement spreadsheet and income calculation
in the trading profit and loss account templates"
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DIY accounting software, tax
accounting, payroll software, limited company formation UK 
