Sep 4, 2019
Do Financial Accounts “Add Value”?
Have you ever had a critical look at the Financial Accounts that your firm is preparing?
Do your clients get value from the Financial Accounts that your firm is preparing?
Does the Profit and Loss Account look something like the following:
|
Income |
|
$3,200,000 |
|
Less |
|
|
|
Opening Stock |
$ 70,000 |
|
|
Purchases |
$ 1,300,000 |
|
|
Freight |
$ 45,000 |
|
|
Subtotal |
|
$1,415,000 |
|
Less |
|
|
|
Closing Stock |
$ 72,000 |
|
|
Subtotal |
|
$1,343,000 |
|
|
|
|
|
Gross Profit |
|
$1,857,000 |
|
|
|
|
|
Overhead Expenses |
$ 1,900,000 |
|
|
Details were shown of the overhead expenses which included labour but no labour on costs |
|
|
|
|
|
|
|
Net loss |
|
$ 43,000 |