Help! - Profit & Loss Account

[SIMONESANDERS]

Hi,

I'm a new member to this forum. I wondered if someone could help me. I am trying to prepare my husbands profit and loss account and I am getting really confused. He works with a partner and they install lockers for various contractors (the work is therefore sub-contracted). They incur overnight costs e.g. hotel etc which I have to invoice the contractor for along with the labour cost. In the profit and loss statement under sales would I use the total figure of labour plus these expenses invoiced? I'm not sure and I'm a bit stuck. Any help appreciated. Thanks Simone

 

[MyAccountantOnline]

Hi,

I'm a new member to this forum. I wondered if someone could help me. I am trying to prepare my husbands profit and loss account and I am getting really confused. He works with a partner and they install lockers for various contractors (the work is therefore sub-contracted). They incur overnight costs e.g. hotel etc which I have to invoice the contractor for along with the labour cost. In the profit and loss statement under sales would I use the total figure of labour plus these expenses invoiced? I'm not sure and I'm a bit stuck. Any help appreciated. Thanks Simone

Yes you do

The sales/turnover is the total amount invoiced.

 

[SIMONESANDERS]

Thanks for your help, I don't suppose you have any profit and loss and balance sheet templates I could tweek. Or have any examples based on teh circumstances explained earlier. Thanks

 

[akirk]

not sure it is right to ask someone who makes their money from being an accountant to give their tools away free

you may find such templates if you google them, otherwise you might find that an accountant is worth spending money on - they can often save you more than they charge.

Alasdair

 

[MyAccountantOnline]

.... you might find that an accountant is worth spending money on - they can often save you more than they charge.Alasdair

Thanks Alasdair and yes you're right!

 

[MyAccountantOnline]

Thanks for your help, I don't suppose you have any profit and loss and balance sheet templates I could tweek. Or have any examples based on teh circumstances explained earlier. Thanks

This might help - http://www.vtsoftware.co.uk/final_accounts/samples.htm

Dont rely on the company templates though - I think you'll find they are out of date.

It will give you some idea of the headings for a soletrader but it wont tell you all of the things you can claim for tax purposes which is where a good accountant is money well spent

 

[SIMONESANDERS]

Thanks, that's great. Sorry you have got to ask. Really want to do it myself this time, I have got an accountant who has gone things through with me confirming what we can and can't claim and may charge me dependent on what help I need which is great but Really not in a position at mo to pay for it as they have only been going approx 5 months and just managing to pay mortgage at mo. Thanks for your help, really appreciated.

 

[MyAccountantOnline]

Thanks, that's great. Sorry you have got to ask. Really want to do it myself this time, I have got an accountant who has gone things through with me confirming what we can and can't claim and may charge me dependent on what help I need which is great but Really not in a position at mo to pay for it as they have only been going approx 5 months and just managing to pay mortgage at mo. Thanks for your help, really appreciated.

No problem at all glad to have helped.

As a thought it might be worth asking your accountant if they give you free support for routine questions and advice - many of us do now rather than charge by the minute for all advice, like we did in the bad old days.

 

[David Griffiths]

I think that there are a couple of items to clarify from your original post, particularly if your husband is in partnership - you do say that he works with a partner. If that's the case, then partnership accounts would be appropriate.

It's also not clear if this is in the construction industry, and if it is who is sending the invoices to your customers - joint names as a partnership or in the sole name of your husband? If your husband's sole name, are you operating proper CIS processes on payments to your husband's fellow worker?

There may not be any problems with any of this, but if CIS does apply and you get it wrong, it can be VERY painful.

 

[SIMONESANDERS]

Hi,
they work in partnership, CIS does apply but the contractor takes care of this. The invoices are sent to the customer in the companies name. What's the difference with partnership accounts and have you any examples or templates or know where I could find one?

 

[MyAccountantOnline]

Hi,
they work in partnership, CIS does apply but the contractor takes care of this. The invoices are sent to the customer in the companies name. What's the difference with partnership accounts and have you any examples or templates or know where I could find one?

The link I gave you does also show partnership accounts.

Briefly you'll have a capital account for both partners with separate drawings and capital introuduced for each.

Do make sure as David mentioned that you are dealing with CIS correctly.