Of getting audited are not that high unless you get to a certain size so taxes already sort of look the other way and business owners can get off me get away with this and then finally tax rates can also be quite a bit different because at leas tin many countries the tax rate on small businesses will be quite different than it is on large public companies C corporations.
oftentimes small businesses are taxed at the owner’s personal tax rate depending on how the business is set up but if another company’s thinking about acquiring it or if the company wants Togo publicist’s tax rate is going to change and so at least in future projections you’re gonna have to modify that and use a tax rate that is closer to what the acquire or what the new investors are thinking about so as an example of this let’s take a look at an income statement from a typical money business and toucan.
see up here we have some fairly non-standard categories this is actually a fake income statement for our business but I’ve listed as categories online courses product sales referred by affiliates coaching and resume ending sales institutions commissions from other products Commission’s by category gross sales lech Commission’s and then fees and refunds and the net sales after fees and refunds as you can tell it’s not exactly presented in a way that’s compliant with gap or FIRS and that’s because for me as the business owner it’s easier and more effective look at it like this I like to see committee and by category.
I’d like to see the refund amount the amount that we’re paying fees and I pay a lot of attention to this number the net sales after fee sand refunds number of course in the real world an accountant or under would probably reject this and tell me that I have to list grew sales and net sales and I shouldn’t even be listing.
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