Accessing profit and loss statement

Support
1

I’ve been asked this but i’m not sure how to produce it?

You will need to do a profit and loss statement and income and expenditure for the last financial year so that they can use the figures on those

Please help?

Regards

Glen

2

Hi @Glen_Jeary

A profit and loss report can be run from under Reports. This will allow you to select what period you want to view, and show you:

  • Turnover (income)
  • Gross profit (income minus cost of sales)
  • Expenses (overheads etc.)
  • Net Profit (gross profit minus expenses)

Hope that helps!

3

Hi thank you. I know how to do that. The problem I have is that doesn’t show my drawings so it makes it look like I have lots of profit which I don’t. Is there a way of inputting the drawings into my accounts?

4

Drawings don’t affect profit and loss, as a sole trader the whole of your net profit is considered your income for tax purposes.

5

Even if that amount isnt in the bank?

6

Yes. If you think about it, it wouldn’t make sense otherwise. Drawings are not like wages, there’s no PAYE income tax deducted at the time you took them, so if you were allowed to deduct drawings when calculating your taxable profit then you’d end up with your income not being taxed at all.

7

Profit and loss isn’t necessarily about how much you have in the bank, it’s about what you’ve charged customers and what suppliers have charged you. Your balance sheet will however show you your bank balances as the cash would be an asset (or lack of would be a liability).

There was actually a post yesterday about this which you may wish to take a look at:

http://community.quickfile.co.uk/t/sole-trader-drawings-on-p-l/12072?u=qfsupport