TWO SIDES BLOG

Where is my cash profit? (5 min read)

One of the most commonly asked questions is where did my profit go? Cash in the bank rarely = profit It can be very confusing if your business has no cash in the bank and your accountant tells you that you made a profit. Cash coming in to the business can take many forms, for example, sales, proceeds of sale of assets and monies loaned into the business - these are not all recorded as income of the business. The same principle applies for cash coming out of the business for example, drawings, loan repayments, purchases of equipment. There are other factors to consider such as timing as you must report your income and expenses on an accrual basis. Broadly what this means is that any sales

RSS Feed
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Social Icon
  • Instagram Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Copyright 2017 - Two Sides

ABN  14 715 925 101

Xero-Gold-Champion-Partner-Logos.png
  • Facebook
  • Instagram
  • Twitter
  • LinkedIn
  • YouTube - Black Circle

Liability limited by a scheme approved under Professional Standards Legislation.