Sole trader tax return financial profit
and loss accounts statement
Details of the income
and expenditure account in the financial accounting spreadsheets for sole traders
and new start up business
PROFIT AND LOSS
ACCOUNT
The financial accounting
spreadsheets in basic accounts collect the financial records from
the sales and purchases accounting spreadsheets in the format
required to produce a monthly profit statement showing the net
taxable profit or loss for each month. The sole trader basic
accounts are an income and expenditure account for the business. By
deducting total expenditure from total income, the basic accounts show on the "bottom line" whether your
business made a profit or loss at the end of that period. The profit
statement shows the sole trader how
the business is performing. The financial statement is used to work out
the self employed tax bill and
also prepare an excel financial spreadsheet of the
self
employed tax return.
The financial accounts software automatically
produces the sole trader profit & loss account from the
financial transactions entered in the monthly sales
accounting spreadsheets and the
monthly expenses
accounting spreadsheets.
|
Profit & Loss Account |
TOTAL |
Jan-09 |
|
2009 |
|
|
|
|
|
Gross Sales Receipts |
0 |
0 |
|
Receipts Government agencies |
0 |
0 |
|
Tax Exempt Income |
0 |
0 |
|
Bank Interest Received |
0 |
0 |
|
|
|
|
|
Sales Turnover |
0 |
0 |
|
|
|
|
|
Opening Stock |
0 |
0 |
|
Stock Purchases for resale |
0 |
0 |
|
Closing Stock |
0 |
0 |
|
|
|
|
|
Cost of Sales |
0 |
0 |
|
|
|
|
|
Gross Profit |
0 |
0 |
|
|
|
|
|
Sub contractors |
0 |
0 |
|
Staff costs Salaries Wages |
0 |
0 |
|
Consultancy & Professional |
0 |
0 |
|
Motor Expenses |
0 |
0 |
|
Travel & Subsistence |
0 |
0 |
|
Repairs & Renewals |
0 |
0 |
|
Premises Rent Rates |
0 |
0 |
|
General Administration |
0 |
0 |
|
Heat and Light |
0 |
0 |
|
Bank Interest and Charges |
0 |
0 |
|
Bad Debts |
0 |
0 |
|
Other Expenses |
0 |
0 |
|
Depreciation |
0 |
0 |
|
Donations entertainment |
0 |
0 |
|
Goodwill / Capital write-off |
0 |
0 |
|
|
|
|
|
Total Expenses |
0 |
0 |
|
|
|
|
|
Net Profit/Loss |
0 |
0 |
An up to date
profit & loss account available in real time in the financial accounting enabling the sole trader to
consider and improve the financial performance and is useful should it be
required to support financial funding, loans or overdrafts from banks and other
financial
institutions. Having an up to date profit & loss
account 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 how the screenshot showing
the sales income and expenditure simple profit and
loss account as it appears in the financial accounts section of the financial
accounts software.
Sole trader accounting software is
crucial to growing new and existing small business profitably.
Keeping a tight rein on the profit
and loss account provides the sole trader with control over the financial
position and business trend with the opportunity to reverse
adverse trends immediately they appear. Small business finance software that
produces an income and expenditure account is an essential small business tool no new start up
business should be without. Run the new start up business without being aware of
the profit statement and success dives into the realm of guesswork.
Fixed Assets Wear and Tear Tax Allowances
Fixed items are items such as plant and machinery used by the business over a period of
more than one year. Depreciation spreads the financial effect on profits over the life of
the fixed asset but does not have an effect on the business tax as
depreciation is disallowed as an expense. Instead the business receives
a capital tax allowance on the cost of fixed assets to set against its profit.
When
the fixed asset schedule is completed the capital allowances are
automatically calculated and also update the profit and loss account in
the depreciation column. While depreciation is then disallowed in the
self assessment tax return the same amount is then added back to the
expenses as capital allowances. Capital allowances on vehicles are
automatically reduced by the personal use %.
The
cost of the asset can be set off against profits
called Wear and Tear
Allowance. The accountancy software has these percentages already
written into the book keeping system.
FIXED ASSETS ACCOUNTING SPREADSHEET
|
Date Asset Purchased |
EXISTING FIXED ASSETS at |
31-Dec-08 |
0.00 |
0.00 |
Deprn Rate % |
0.00 |
0.00 |
0.00 |
0.00 |
|
Asset Description |
Purchase Reference |
Original Cost |
Accumulated Depreciation |
Net Book Value |
Depreciation Charge |
Accumulated Depreciation |
Net Book Value |
|
31-Dec-08 |
31-Dec-08 |
2009 |
31-Dec-09 |
31-Dec-09 |
|
|
|
|
|
|
|
|
|
|
|
|
Ireland Wear and Tear Allowance
|
0.00
|
0.00 |
0.00 |
0.00 |
|
Wear and Tear Tax Value |
Wear and Tear Allowance |
Wear and Tear Allowance |
Wear and Tear Tax Value |
|
31-Dec-08 |
12.5% |
20% |
31-Dec-09 |
|
|
|
|
|
Businesses should set a consistent policy in the treatment of fixed
assets and it is suggested that only long term assets (used more than
one year) and costing over 100 should be classified as “fixed”.
Brief descriptions of the full range
of Accounting Software,
Payroll Software, are available
on the DIY Accounting home page
"Sole trader tax
return financial accounts includes profit and loss account profit statement,
calculates tax liability and completes tax return"
| 
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small business
accounting software, tax accounting, payroll software, 
