I add 30% profit onto the cost of stock, but my accountant tells me I am only making 23% profit ?
OK so say my stock costs £100 - I add on 30% profit and sell it for £130. Why does my accountant tell me that I am only making 23% profit ?? I'm confused - Maths never was my strong point ! No it is not his fees !!
Other - Business & Finance - 8 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Cos you forgot the Accountant's commission charges.
Answer 2 :
his fees, of course!
Answer 3 :
His fees oops
Answer 4 :
£30 of £130 is 23% (30 / 130) * 100 To make it easier, if you bought it for £100 and added £100 you would make £100 profit for every £200 sold which would be 50% profit
Answer 5 :
this is because you profit is taken from your sales price and not your cost price. If you wanted to make 30% profit, what you need to do is to divide the cost price by the remainder of the profit as a decimal... (easier to write than explain)... so if you want to make 30% profit... the remainer of the percentage is 70%.. written as decimal is 0.7 divide the cost price £100 by 0.7, and this gives you .... £142.86. This is your selling price to make 30% profit. If you wanted to make 25% profit, you would divide £100 by 0.75... and so on... You need to MARK UP your stock, not just add a percentage. Happy selling !
Answer 6 :
Depends, Ok so you buy stock in and sell it at profit. First thing do you take into account any delivery charges in both recieving the purchased stock and sending it on to those who have purchased it...? Do you use any other materials, packaging etc that you pay for but don't add on to your prices to reflect this...? Do you factor in any utilities if used, ie electricity, gas, telephone...? This is all taken into account by your accountant in basic income and expenditure calculations, what may be taken for granted in your business by you is in fact eating into your profit margin without you realising it.
Answer 7 :
You can easily bring in a lot of legitimate cash completing free offers on GPT sites. GPT (Get Paid To) websites are a good and easy way to make fast and free money online. A good site to learn about them is http://www.gptcentral.net/.
Answer 8 :
One word: TAXES, the purpose of an accountant is to give you after-tax information, hence your 23%
Read more other entries :
