The 4-line statement is a summary of your business performance, which is to be reported in your income tax form. The 4-line statement consists of Revenue, Gross Profit/Loss, Allowable Business Expenses and Adjusted Profit/Loss.
Revenue
Revenue is the total receipts of your business during the accounting year before deducting any business expenses. It includes all earnings, even if it has not been received yet.
Revenue includes:
- Sales takings from goods sold
- Payment or fees received or receivable for services provided
- Bills paid or unpaid sent to customers
- The selling price of goods or materials used - but not for business purposes (for example, goods are taken from your stock for your own use, or for family or friends)
Revenue excludes Jobs Credit payout as the Jobs Credit payout is not taxable.
Gross Profit / Loss
Gross profit is the turnover figure less the cost of goods sold. If you are in the service business and there is no sale of goods, then your gross profit is the same as your turnover.
Allowable Business Expenses
Allowable business expenses include expenses and capital allowances incurred wholly and exclusively in the production of your income.
For more information you may refer to Claim Allowable Business Expenses and Claim Capital Allowances
Adjusted Profit / Loss
Adjusted profit/loss refers to the gross profit/loss less the allowable business expenses and any capital allowances claimed.
Working Sheets
For your general reference, we have provided sample working sheets to prepare the statement of profit and loss. If you are a taxi driver (23KB), commission agent(23KB), or you are engaged in general trade (23KB), you may use the working sheets as a guide.