Profit and Tax Box Owners The 4 Key Numbers Real Revenue Owners - - PowerPoint PPT Presentation

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Profit and Tax Box Owners The 4 Key Numbers Real Revenue Owners - - PowerPoint PPT Presentation

Sep 28, 2022 256 likes •334 views

Profit and Tax Box Owners The 4 Key Numbers Real Revenue Owners Pay Profit Tax Different than Total Revenue Take home pay What comes back to you because This can be minimized Makes all businesses The cost

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SLIDE 1

Box Owners

Profit and Tax

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SLIDE 2

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The 4 Key Numbers

  • Different than “Total Revenue”
  • Makes all businesses

comparable

Real Revenue

  • Take home pay
  • The cost of your lifestyle

Owner’s Pay

  • What comes back to you because

you are the owner of the business

  • Also known as “Return on

Investment”

Profit

  • This can be minimized
  • The business generates the

burden of the tax so it should be the one that pays the tax

  • You shouldn’t have to pay the

tax out of your lifestyle money.

Tax

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SLIDE 3

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WHEN YOU TAKE MONEY OUT FOR YOURSELF

It’s not always the same reason For Purpose of Profit For Purpose of Owner’s Pay Quarterly Distribution Represents ROI An owner that does not work in the day to day

  • f the business would
  • nly receive these profit

distributions and not any owner’s pay. Talked about Yesterday Anything for owner’s lifestyle

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SLIDE 4

Return on Investment

RETURN ON INVESTMENT (ROI) SHOWS THE RETURN YOU GET FROM YOUR INVESTMENTS IN A PERCENTAGE FORMAT

ROI FORMULA

ROI = (Gain on Investment – Cost of Investment) Cost of Investment

YOUR BOX IS AN INVESTMENT

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SLIDE 5

KNOW YOUR NUMBERS WORKSHEET

  • Enter how much the business consciously paid you in profit distributions.
  • If your business had a net loss, then you need to put that loss number on the

worksheet

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SLIDE 6

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TAXES

Income Taxes This is one of the 4 key numbers that we will enter in on the worksheet. Payroll Taxes This is an operating expense and comes out of your operating expense account. Sales Taxes This is actually your members sales tax. You are just required to take it from the member and give it to the government on their behalf.

INCOME PAYROLL SALES

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SLIDE 7

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INCOME TAXES

The business generates the tax burden The business should pay for the tax burden Owner’s should not have to take money out of their “owner’s pay” to pay for the taxes Owner’s pay should just be for the owner’s lifestyle. Put how much the business paid of your income taxes on the Know Your Numbers worksheet