My sole trader business profit is $45,000. Where has the profit gone?
To work this out you need to run the Balance Sheet report as at 30 June this year and compare it to 30 June last year
Example- Profit $45,000
|
30/06/2022 |
30/06/2021 |
Difference |
|
|
Assets |
|||
|
Bank |
18,000 |
18,000 |
0 |
|
Accounts Receivable |
18,000 |
15,000 |
+3,000 |
|
Owner Loan / Drawings |
25,000 |
5,000 |
+20,000 |
|
|
|
----------- |
|
|
Assets have increased by |
|
|
23,000 |
|
Liabilities |
|||
|
Credit Card |
1,000 |
3,000 |
-2,000 |
|
Accounts Payable |
11,000 |
21,000 |
-10,000 |
|
ATO Debt |
2,000 |
12,000 |
-10,000 |
|
|
----------- |
||
|
Liabilities have decreased by |
22,000 |
||
|
----------- |
|||
|
Total |
$45,000 |
In Summary
-$20,000 has been taken by the owner
-$22,000 liabilities have been paid off
-customers owe extra $3,000 compared to same time last year