Net profitability formula. We wish we could say ‘the clue’s in the name.’ But, it’s really not. In fact, understanding Net profitability formula is quite a mystery. 🔮
So, put on your glasses, pink tights, orange scarf, or green tee, and get the gang in the van because we’re about to solve it. 🚐
Oh, and don’t forget to bring your very own Scooby Doobie Doooo! 🐕
|Materials||Credit card fees on customer purchases|
|Direct labour||Utilities for the production site|
|Commissions for sales staff||Shipping|
Jinkies! The next clue is waiting for us.
Net Profit = Total Revenue – (Total Expenses + Taxes + Depreciation)
Zoinks! There’s some more mysterious words here. Let’s put our investigative skills to the test. 🔍
Net profit is used to indicate a company’s profitability.
Here’s an example:
|Cost of Goods Sold||£2,000|
Remember, Net Profit = Total Revenue – (Total Expenses + Taxes + Depreciation)
So, £5,000 – (£1,000 + £500 + £100) = a Net Profit of £3,400.
We’ve got you, gang💪
The SA302 (tax calculation) form shows how much money you’ve earned and how much tax you’ve paid in the past 4 years. Finding net profit on your SA302 is another mystery to solve because it’s not actually there. You’ll need to take the figures for your total revenue, expenses, taxes, and depreciation from the form to calculate your net profit.
You’ll need one if you’re self-employed and you want to prove your income because you’re applying for a mortgage or loan. 🏡
You can get a SA302 form from:
There’s a very logical explanation for all this! 💡Our free bookkeeping tools!
Your final mission is to keep track of your business’s income and expenses. You’ll need these to calculate your net profit.
Our accounting software gives you a 360 view of your finances. With everything all in one place, you can keep track of the income you’ll need to calculate your net profit.
Upload pictures of your receipts directly to TaxScouts and let our AI-powered data extraction tool pull your spending. Store them online until you’re ready to deduct them.
Find out more on how our free bookkeeping tools can help keep your mysteries at bay 👇
Jeepers! That was a lot to solve.
But, armed with your new knowledge and bookkeeping tools, there should be no more mysteries for a while. 🤞
Manage your self-employed finances in one place with 10/10 bookkeeping tools.