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Why draft Profit & Loss Statement Five times in a year?

 

  • You can find out how business is     growing and whether it is making a profit or not.
  • Inland Revenue Service is not comfortable if you withdraw money regularly from your limited company business.
  • If your business is doing well, you can find out your potential VAT and tax liabilities and decide how much money you can withdraw and spend while the year is in progress and you can plan the budget and pay minimum tax.
  • If your business is not making profit, you cannot declare dividends.
  • As all your records are balanced on a quarterly basis, it will lead to fewer questions or perhaps no questions from the tax authorities.
  • By reconciliation of records, we can eliminate any potential problems even before they arise.

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