![]() If you are forecasting estimated figures, consider what forms of income your business may have and when. In subsequent months it will be the closing balance from the previous month.Ĭash incoming is money that is flowing into the business. In the first month this will be your opening bank balance. You'll also need to clearly state on your cash flow statement whether your figures are GST inclusive or exclusive. If you use estimated costs, you’ll need to label and justify them clearly. It is called a balance sheet because, at any given moment, each side of this equation must 'balance' out.For each year, you'll need to fill in actual or estimated figures against each of the below items. There are 3 sections in a balance sheet, represented by the following:įormula: Owner's equity = Assets - Liabilities At any point in time, it shows you how much money you would have left over if you sold all your assets and paid off all your debts. This is also known as the 'bottom line'-net profit is the total amount earned (or lost) after paying all expenses.Ī balance sheet (also known as a statement of financial position) is a summary of all your business assets (what your business owns) and liabilities (what your business owes). Net profit = Total revenue - (Costs of goods sold + Operating expenses).It does not include expenses from interest or taxes (often called earnings before interest and tax, or EBIT). This shows profit generated from core operations. Operating profit = Gross profit - Operating expenses. ![]() ![]() 20% gross profit margin means you keep a gross profit of $0.20 for every $1.00 of revenue generated). This shows what proportion of gross profit you keep from each dollar of revenue generated (e.g.
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