Where can I see how much profit I make in a year?
What is the purpose of a profit and loss account
The profit and loss account is part of your annual financial statements. The P&L summarises the income and expenses of your business over a given period, usually the fiscal year. Simply put, the balance of this account is the profit or loss of your business, because your expenses are deducted from your revenues. A positive balance is called profit and a negative balance loss. This is your gross profit, because this amount is the amount before you have paid income tax. Your net profit is what you are left with after paying your income tax.
Profit and loss in The Bookie Webapp
If you work in The Bookie Webapp, you can always find the provisional profit and loss account in the left column under Reports. Here you can choose your overview per year at the top.
Extended profit and loss account
The final profit and loss account is always part of the income tax return that The Bookie prepares for you. Because we also take into account recurring elements (for example, an investment that can be added for another 3 years) your final profit and loss account may look different than the overview in the Webapp.
When is a profit and loss account useful?
Sometimes a third party wants to have insight into your finances, for example for renting or buying a property. In the case of a rental property, the Profit and Loss statement from The Bookie Webapp is often sufficient. Sometimes a landlord may want to have it signed. Double check with the landlord exactly what they want to receive from you. If a signed version is required, feel free to ask us for it.
Please note: this is not an accountant's statement. Although this is often asked for initially, in practice turns out not to be necessary at all.
When buying a house, you often need interim annual figures or the final annual documents. We can draw up interim annual figures outside of the subscription on the basis of our hourly rate. The final annual figures are part of your subscription and are prepared as soon as we file your income tax return. This is only possible after the financial year has ended. Because we need additional information, it is important that you fill out the checklist (which you can find on the dashboard of The Bookie Webapp) as completely as possible and send it in.
Do you need your annual reports on short notice?
Because we process your tax return first come first served, it may take a while before it is your turn. Do you need your annual documents on short notice? Then you can always ask us to deliver your annual documents faster. Since we schedule extra hours for this, we will charge an urgency fee of 25% extra.