ForConstructionPros.com

The Back Office Article

   

The Back Office

Updated: November 11th, 2008 05:04 PM GMT-05:00

How Much Money Are You REALLY Making?

Ron Roberts

1. Increase the payroll by the difference of what your wage really was (step 1) minus what you were paid.
2. If your Income Statement was cashed based, adjust the stated sales by the amount of sales you deferred to this year and subtract the sales that were deferred from the previous year.
3. Do the reverse with your expenses. Add back the expenses you prepaid at the end of the previous year and subtract the expenses you paid at the end of last year.
4. Work through your overhead line items and subtract out the amounts that were actually personal. (Who's kidding who here? - Everyone has them in there.)
5. If you have separated your equipment into another company, roll that income statement into the one for your business side.

E-mail This StoryE-mail Article Print This StoryPrinter Friendly


Submit a Comment

Name: *
Subject:
Location:
  (display Email: )
 
 
Enter the characters you see in the image:
 
 
 
   
* = required
(comments will appear after this article, as well as on our Readers Respond Page)