5.2 Account Version - Complete
Elements of Profit and Loss
Understand these Basics
This is the Sales that you generated. It is the money you actually received for your services and products and the Invoices that you sent waiting for payment.
This is the direct Cost you incurred to make the sale. If you did not make any sales, you would typically not have incurred this expense. Your Gross Profit is the difference between Revenue and Cost of Sales. This needs to be high to cover your OverHead Expenses.
Gross Profit the amount of Cost of Sales that is Deducted from your Revenue, the aim for the business is to make a high Gross Profit, known as a Highest Margin Possible so that it can be used to Fund the Expenses, Salaries and Capital growth of the Business.
This is needed to run your business day to day. I have a full list of these expenses to help you measure and monitor your costs and to help you file with filing of your tax return.
After all expenses are deducted you get to a Net Profit. Your Taxes will then be calculated based on this Net Profit AND other factors your Tax Practitioner will need to calculate.
Your Net Profit is used to Calculate your Business Net Worth and impacts the Equity on the Balance Sheet. [ It Measures the True Growth and Health of the Business]
Account List - Complete
REVENUE LIST
Income Received Goes Here
Keep it Simple
Money received for your Core Services and Products related to the Nature of your Business. Join the Course to Understand what to do with Deposits and with Invoices that are not Paid.
Bank Interest or any interest Income will come here. Note that SARS will tax you on the income of your interest, Tax Accountant can help you further.
Money of an Insurance Payout needs to be shown as proceeds. Note this can be a complicated transaction to show in your books, because it often leads to a loss in an Asset.
Income Related to other non core activities. If you want to show this separately to not distort the Core Business Model, when analysing your Sales.
This is money you returned to Customers meaning you reversed the Original Sale.
EXPENSE LIST
Business Related Expenses Goes Here
Categories related to Expenses
200 - Stock Purchases (Main Account)
201 - Stock Purchases - Sub Contractors (Outsourced Work)
202 - Stock Purchases - Materials (Material Needed to Make Income)
203 - Custom Account for Cost of Sales (Something Specific in your Industry)
Use this Account when you get money back from a supplier. Actual money as in Cash or in the Bank Account, ignore if its on the Balance Credit and will reduce Future Expenses on the Statement.
300 - I Dont Know (If you confused)
301 - Business Insurance
302 - Bank Chargers
303 - Security
304 - Training
305 - Compliance
306 - Equipment Hire
309 - Other Expenses
310 - Cleaning and Deco
311 - Stationery and Consumables
312 - Printing and Postage [Note not freight related to sending products if you online store]
313 - Equipment under R 7000
314 - 319 - Own Custom Accounts
320 - I Dont Know (If you confused)
321 - Business Insurance
322 - Bank Chargers
323 - Security
324 - Training
330 - I Dont Know (If you confused)
331 - Business Insurance
332 - Bank Chargers
333 - Security
334 - Training
335 - Compliance
340 - I Dont Know (If you confused)
341 - Business Insurance
342 - Bank Chargers
350 - I Dont Know (If you confused)
351 - Business Insurance
352 - Bank Chargers
360 - I Dont Know (If you confused)
361 - Business Insurance
362 - Bank Chargers
363 - Security
364 - Training
365 - Compliance
370 - I Dont Know (If you confused)
371 - Business Insurance
372 - Bank Chargers
373 - Security
374 - Training
380 - I Dont Know (If you confused)
381 - Business Insurance
382 - Bank Chargers
390 - I Dont Know (If you confused)
391 - Business Insurance
392 - Bank Chargers
400 - I Dont Know (If you confused)
410 - Business Insurance
420 - Bank Chargers
430 - Security
440 - Training
450 - Compliance
460 - Equipment Hire
470 - Other Expenses
490 -
500 - I Dont Know (If you confused)
501 - Business Insurance
502 - Bank Chargers
503 - Security
504 - Training
PERSONAL ITEMS
Non Business Related Items
Categories related to Personal
Your Tax Practitioner can help you understand if this can be deducted for Tax Purposes.
400 - I Dont Know (If you confused)
410 - Business Insurance
420 - Bank Chargers
430 - Security
440 - Training
450 - Compliance
460 - Equipment Hire
470 - Other Expenses
490 -
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
701 - I Dont Know (If you confused)
702 - Business Insurance
703 - Bank Chargers
704 - Security
705 - Training
Balance Sheet List
Complex Transactions
More Complicated Items
Our company specializes in consulting, product development, and customer support. We tailor our services to fit the unique needs of businesses across various sectors, helping them grow and succeed in a competitive market.
You can reach our customer support team by emailing info@yourcompany.example.com, calling +1 555-555-5556, or using the live chat on our website. Our dedicated team is available 24/7 to assist with any inquiries or issues.
We’re committed to providing prompt and effective solutions to ensure your satisfaction.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
Asset Related
Assets in the name of the Business
Our company specializes in consulting, product development, and customer support. We tailor our services to fit the unique needs of businesses across various sectors, helping them grow and succeed in a competitive market.
You can reach our customer support team by emailing info@yourcompany.example.com, calling +1 555-555-5556, or using the live chat on our website. Our dedicated team is available 24/7 to assist with any inquiries or issues.
We’re committed to providing prompt and effective solutions to ensure your satisfaction.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
We offer a 30-day return policy for all products. Items must be in their original condition, unused, and include the receipt or proof of purchase. Refunds are processed within 5-7 business days of receiving the returned item.
Account List - Complete
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