The profit and loss account templates are a summary of business transactions in a profit statement for a given period - normally 12 months.
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.
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
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.
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.
Accounting Software "Example of the self employed accounts financial profit statement spreadsheet and income calculation in the trading profit and loss account templates"