Being an entrepreneur like Luke Skywalker (or Count Dooku — rest in peace, Mr. Lee) working for yourself can bring a whole host of benefits – better well-being, better business hours, and being happy in what you do are the positive sides to entrepreneurship along with wielding your trusty light saber. But what usually comes with working for yourself and running your own business are the financial reports and data that most of us just don’t like to decipher, leading us to financial peril.

Profit & Loss

Profit and loss are a given in business, yet there are many entrepreneurs out there who don’t even look atP&L statements Yoda their statements, thinking a Jedi mind trick would, well, do the trick. Understanding the language of P&L statements is actually quite straightforward even from a business bookkeeping aspect:

Sales – Costs = Profit

There are sometimes different versions of these words, but the formula is still the same. Sales, revenue, or income will be at the top of your statement; cost or expense, somewhere in the middle; and profit, or net income, will be the final profit sum at the end of your statement.

Working Out Subtotals

You may see columns in your P&L statement such as a breakdown as to where your costs and sales come from. For example, if you own a car rental business, you may have three separate sales statements; one each for small cars, family cars, and SUVs.

Costs may also be broken down in similar ways. In the case of a car rental company, you may wish to breakdown your costs for car hire, maintenance, and staff or building upkeep. It doesn’t matter how you break down your sales and costs, because these always add up to total sales and total costs. A breakdown of these can help you to analyze where you gain the most or least profit, so that you can then fix or maximize that particular product, cost or service.

A Mathematician, You Do Not Have to Be

So says Yoda. Once you take a section of your P&L statement and look further into what it really means, profit and loss statements need not be so complicated. Just remember that sales, minus cost, equals profit. The more sales you create, the larger your profit. The more cost you incur, the more likely you will make less profit. Now may the Force be with you.

Your Home Not Only Shelters You, But Your Taxes!

Posted by wpadmin | Posted in Finances, Taxes | Posted on 12-01-2016

Tagged Under : , , , , , , , , , , , , , , ,

Is there any wonder why we have such programs like H.O.P.E. to Own? Home ownership, the ultimate goal, the American dream. And it’s not just about the prestige about owning a home; it’s about so much more:

The Fact Is This: Owning That Home Actually Benefits Your Taxes

Here’s how our budding real estate market, what with the rising home prices and mortgage trends exploding all over the industry can bolster your own tax returnyour taxes home

  • Deducting Mortgage Interest — Sure, you’re paying a mortgage every month, but there’s a reason why programs like Assisting Renters focus on the ultimate goal of home ownership: you can deduct all that interest from your mortgage payments on your taxes.
  • Real Estate Taxes and DepreciationRegister to buy a home, and you might find that you can deduct a good percentage of these taxes and save some extra money on your return. Sign up with the Income Tax Planning Network to learn more.
  • Home Improvements — We know, we know…. It costs some money for the investment, but guess what: you can get tax credits for this as well, plus save some more money with this offer and these money-saving tips as well.
  • House Flipping — Even though flipping real estate’s not quite as en vogue as it used to be, we say take advantage of the opportunity when you can. It just so happens that if you flip a property and make a profit of under $250K, you don’t pay any taxes for it. That’s only if you’re filing a single tax return, but if you’re married and filing jointly, that profit amount doubles. Just be sure you’re occupying said home you’re flipping for at least two years before you sell to reap the tax benefits.

Convinced, yet? Looks like you need to purchase that home….

And Don’t Stop There: There Are Plenty of Other Ways to Save on Your Taxes

Just click here to find out what else you don’t know about your taxes, tax credits, tax exemptions, and other goodies that’ll help maximize your success in getting that great tax refund deposited. You’ve earned it.

Post your comment

You must be logged in to post a comment.