Hi can someone answer me this question:
With quickfile, it works out your gross profit by taking your sales, deducting any discounts allowed to generate the turnover. It then deducts general purchases and carriage to give the gross profit.
But why does my accountant have the general sales, then deduct opening stock, purchases, waste (skips or cleaning), sub contractors and closing stock, to then arrive at the gross profit figure?
Our sub contractor bill for the last 9 months is around 17k. this sum alone makes a huge difference to the gross profit.
Basically, the projected gross profit with quickfile is approx £200’017, but with the accountant it’s only approx £173’232. Which in turn is £88’000 net profit with quick file and only £53’000 with the accountant!
A rather worrying difference. Any ideas?