How the Statement Flows: Gross Profit: We start with your total Revenue and subtract the Cost of Goods Sold to see your fundamental profitability before other overhead costs. Operating Profit: This section takes your Gross Profit and deducts your recurring Operating Expenses (like rent, salaries, and marketing). This shows the earnings from your core business operations. Profit Before Tax: After considering any Other Income & Expenses (non-operational items), we arrive at the pre-tax profit. Net Profit / Loss: Finally, we subtract the applicable Tax to reveal the ultimate "bottom line"—whether the company made a profit or a loss during the period. #Accounts #Profit #Tax

Today I learnt about the Full breakdown of Total Revenue to Net Income: Total Revenue – Cost of Goods Sold (COGS) = Gross Profit Gross Profit – Operating Expenses (excluding Depreciation & Amortization) like Salaries, Marketing, Rent, Admin = EBITDA EBITDA – Depreciation & Amortization (D&A) = EBIT (Operating Income) EBIT – Interest Expense + Other Income = Earnings Before Tax (EBT) EBT– Taxes = Net Income

If you’re guessing on quarterly taxes, you’re usually overpaying. Overpaying ties up cash you could use for payroll, inventory, or growth. Underpaying can trigger penalties and a surprise bill. A practical way to get this under control: 1) Start with a baseline. Last year’s total tax ÷ 4 is a starting point. Not the plan. 2) Adjust for what changed. Profit up or down? Big write-offs? New state, new entity, new contractor spend? 3) Use a YTD check-in. Every quarter, estimate income through year-end. Then true-up the next payment. 4) Hold taxes in a separate account. Paying is easier when the cash is already parked. If you want quarterly payments that match reality, book a Free Financial Clarity Call.

You undercharge because you don't know your costs. When you don't know your monthly expenses, you can't calculate your minimum viable rate. When you can't calculate your minimum viable rate, you guess. When you guess, you guess low. Because low feels safe and high feels risky. A consultant who knows their numbers prices from data. A consultant who doesn't prices from fear. Clean books fix more than your taxes. They fix your pricing.

I’ve been asked on a number of occasions about creating a flowchart for GST outcomes relating to real property. “Simple” questions like: “Is the sale of this property taxable?” or “Is the taxpayer eligible for a GST rebate after acquiring this property?” Real property GST questions are rarely linear. The answer often depends on the type of property, the use of the property, the status of the parties, timing, intention, elections, exemptions, self-supply rules, rebate conditions, and a handful of facts that usually do not appear in the first version of the question. Could a flowchart be built? I’ve tried. Numerous times. If I’m ever successful, I promise it will be available to everyone. I’ll be retired by then, but someone will happily offer it to you while I quietly collect the royalties. Until then, the best “flowchart” is still a careful review of the facts.

MAY 15 ISN'T JUST A DEADLINE. IT’S A DIAGNOSTIC. Most owners view the monthly payroll tax deadline as a chore. Strategic owners view it as a pulse check for cash flow health. PAYROLL TAX RED FLAGS: - Borrowing from sales tax to cover federal deposits. - Using credit cards to fund tax liabilities. - Relying on "one big check" to hit before the IRS drafts. If May 15 feels like a scramble, the system is broken. Healthy cash flow = Taxes are an automated non-event. Clean books are the difference between guessing and knowing. Don't wait for a crisis to audit your liquidity. Where does your cash flow stand this month? A) Stress-free and automated B) Timing is a bit tight C) Relying on credit to bridge the gap D) Total scramble

recent new client I've worked with has spent the whole year moving money around just to keep things afloat. Payroll cleared. Suppliers were paid. The business kept running. But it always felt tight, like there was just enough there if he timed it right. So when his last accountant told him he’d had a great year, he didn’t understand how that could be true. And when the tax bill came through, it made even less sense. He wasn’t surprised there was tax to pay. He knew that part. What he couldn’t understand was how it could be that high when he’d been juggling cash all year just to keep everything going. Where was it supposed to come from? In my experience, that’s the part most business owners never get shown properly. Profit is calculated over time. Tax is based on that number. But cash doesn’t move in a straight line. So you can spend an entire year making sure everything just works…and still end up with a tax bill that doesn’t match the reality you’ve been living in. Not because anything’s gone wrong. Because no one has helped you connect those two things properly.

May Tax Tips You Can’t Afford to Ignore Two big updates just dropped — one is an opportunity, the other is a warning. ✅ $20,000 Instant Asset Write-Off extended to 30 June 2026 If you're a small business, this is your window to bring forward purchases and reduce tax now. ⚠️ ATO cracking down on contractor income With data matching in full swing, the ATO already knows what many contractors are earning. If income is missing… it’s only a matter of time. 👉 Smart move? Maximise deductions and stay compliant before problems start. We’ve broken it down in plain English here: 🔗https://lnkd.in/gCR6VnGt If you’re unsure how this impacts you, it’s worth getting clarity now — not when the ATO calls. #taxtips #smallbusiness #contractors #taxplanning #ATO #businessadvisory

We found $60,000 in tax savings in 5 mins yesterday. Now we’re giving the exact method away. Owners hand over returns every year, then hope the CPA calls back. Weeks go by, payroll changes, investments happen, and deadlines get missed. The issue isn’t effort. The issue is no structured map. This diagnostic closes that gap. Here’s how it works: 1️⃣ Scan for savings Returns are parsed and each major category is scanned for opportunities: QBI, depreciation, payroll, credits, SALT. 2️⃣ Rank actions by dollars and timing Score each action by impact, urgency, and effort. 3️⃣ Build a safe-harbor plan Recalculate quarterlies with new thresholds to avoid penalties. 4️⃣ Collect docs and finalize Checklist + 30-min review = gaps closed before deadlines. Old way: scattered advice and endless follow-ups. New way: one 6-page pack with dates, forms, and defensible numbers. Want it free? 👉 Comment “WIN” + like (must be connected so I can send!) ♻️ Repost, and I’ll also send our internal tax calculator that takes the review to the next level

Your tax return is not the strategy. It’s the receipt. By April, most of your tax-saving opportunities are already gone. The decisions that lower your tax bill happen during the year. 📌Payroll. 📌Owner pay. 📌Bookkeeping. 📌Entity structure. 📌Business purchases. 📌That’s where the money is. 𝗧𝘂𝗲𝘀𝗱𝗮𝘆 𝗧𝗮𝘅 𝗧𝗶𝗽 — Something To Consider 𝗧𝗵𝗲 𝗔𝘂𝗴𝘂𝘀𝘁𝗮 𝗥𝘂𝗹𝗲 is a tax rule that may let you rent your home to your business for fewer than 15 days a year. If done the right way: ✅Your business may be able to deduct the rent. ✅And you may not have to pay tax on that rental income. That can be a big win. But it is not as simple as writing yourself a check. You need: • Good records. • A fair rental price. • And the right setup. • A real business reason. • Proof the business paid. 𝗜𝘀 𝗶𝘁 𝗿𝗶𝗴𝗵𝘁 𝗳𝗼𝗿 𝗲𝘃𝗲𝗿𝘆𝗼𝗻𝗲? 𝗡𝗼. But if you own a business and have never heard of it, it may be worth a conversation. https://lnkd.in/eV9SvK3X #TuesdayTaxTips #TaxStrategy #SmallBusiness #BusinessOwner #AugustaRule #TaxPlanning #TuesdayTaxSolutions