How do I calculate my profit or loss (before tax)?
To determine your profit 😊 (or loss ☹), use the following formula:
Total Revenue (sales, interest earned, etc) less Total Costs (including Cost of Goods Sold and Expenses, aka overheads).
If you are registered for GST then the values used for this calculation do not include GST.
If the total revenue is higher than total costs then you have a profit.
If the total costs are higher than the total revenue, then you have a loss.
At Expert Bookkeeping and Accounting Services we have skills and experience to carry out a number of different complex calculations that will provide you with the guidance that you need in order to make decisions that will impact the financial performance of your business.