Prints money I think... :unsure:Quote:
Originally Posted by GepperRankins
Printable View
Prints money I think... :unsure:Quote:
Originally Posted by GepperRankins
@ Bararossa. The business i mentioned there was the one i abandond. We have changed our focus from restaurants and fast food outlets into a more profitable area, but are using the same facilites we created for that business.
This is why i think manker is a retard. He is suggesting he understands my business more than myself.Quote:
Originally Posted by manker
I have never said it was gross profit. When calculating profit for investors or anyone else interested in how well the business is doing its better to mention gross profit, as this gives a better idea of the business's performance. But of course to minimise tax you find ways to re-invest the money.
I don't know why he thinks he understands outsourcing better than myself. Our outsourcing is the reason for our high margins because rather than employ high cost UK staff we have chosen to outsource the work abroad for about a tenth of the cost. In addition we have deployed efficiency measures which saves our clients further.
I was not working from my bedroom:lol: , and the reason why it took so long to get broadband at work was a problem with BT. But I was far more concerned that they were having problems installing the phone line.Quote:
Added to this is that Robert was working from his bedroom until late October last year. When he informed us that he had, at last, got an office and would be setting up his new business from there. As I recall it was some time before he could afford a broadband interweb connection.
In the end they paid me some (meager) compensation.
how much net profit have you earned this year and what do you reckon to next year?
knobber peado letch fake businessman :01:
Robert, you haven't the slightest clue.
I wonder if you could explain why you think gross profit gives a better idea of the business' performance. The reason I ask is because no-one in the whole wide world who can understand a P&L would agree with you.
Also, I do understand outsourcing better than you. In fact I'd go as far as to say that it falls within my area of expertise. FYI, outsourcing isn't a synonym for farming out work to a foreign country. It's merely an example - which is why your blanket statement earlier that 'I outsource so my margins are high' was pish.
If you have to get foreigners to develop software for you, then you're paying them money which you wouldn't have to pay if you could code it yourself. Therefore outsourcing has cut your profit margin. Sure, you can say that otherwise you'd have to get UK coders to do - but that's still outsourcing.
It just means that this particular type of oursourcing has cut your profit margins by less than another type of outsourcing.
Further, if the idea that Barbarosa posted was subsequently rejected by you in favour of a different venture - how then have you got a full year of accounts. You posted it on the 21st August 2004.
You won't know this but once a million pound company gets to its year end, it will take at least a month to produce a set of accounts with which one can derive a profit figure.
You're full of shit. I'm surprised, really.
I have dabbled a wee bit with the old reading a set of accounts me'self. I am by no means an expert however I do not consider it a black or arcane art.
Reading Robert's contentions it would appear to me that he is someone with a minimal grasp on how businesses, accounts etc work. He then uses this to try to impress the Ladies on the interweb.
I particularly liked "I have never said it was gross profit. When calculating profit for investors or anyone else interested in how well the business is doing its better to mention gross profit, as this gives a better idea of the business's performance. But of course to minimise tax you find ways to re-invest the money."
Now forgive me for being simplistic here, however Gross profit is really just sales minus cost of sales. That is before taking off other expenses like rents, rates, salaries, loan repayments, taxes, depreciation of assets other expenses.
Net profit is the figure after having deducted these other expenses. To put it simply, how much the business makes.
Now I would have thought this would have been of some interest to potential investors. There could be a large gross profit and net loss, if for example the business had over borrowed (see manutd).
The "But of course to minimise tax you find ways to re-invest the money", is particularly nice, as it doean't mean feck all. It could only be improved by adding "and stuff" at the end.
I would like to note that JP just outsourced part of his post.
"And stuff" was coded by me.
Hoi, you sold me the interlectural rights to that.Quote:
Originally Posted by clocker
It were the best part too, sucker.
Robbie... you are a nob. Your lies just bore me now.
That is all.
P.S. Goodbye.
Peace bd
OK I confess i dont own a business, i actually live on mars and do daily battle with emperor zog for control of his jelly lake :lol:
As always any discussion with manker and his clone always go round and round in circles, and this thread will go the same way.
It simply isnt worth my time to explain every aspect of my business to people here, i honestly have better things to do.
But i will clarify a few things, the core of the argument is with manker regarding outsourcing. I want to reiterate "He does not understand how my business works".
What we develop are systems (not going to say what) for each client. This work cannot be done by myself because as it would be too time consuming, so we need to employ other people. For each client it takes between a few days to weeks to create this system.
If we employed UK staff it would cost far more than employing the services of outsourcing companies abroad.
So to reiterate, "outsourcing is the reason for our high margins" because our costs are much lower than if we employed UK staff. If we employed UK based staff our profits would be negligible.
As for the gross profit, net profit etc. here are the definitions:-
net profit
Gross sales minus taxes, interest, depreciation, and other expenses. also called net earnings or net income or bottom line.
gross profit
Pre-tax net sales minus cost of sales. also called gross income.
In between "gross Profit" and the "net profit" we have the accountant who would suggest we make capital investments so the profit appears much lower than it actually is when submitting the accounts. But these capital investments are "one off" expenditures that add to the assets. The capital investments we have made "appreciate" in value over the long term i.e. property for the business.
As for the other expenses i.e. salaries, again you need to understand how my business works. As we OUTSOURCE the work abroad and we pay agents commission to obtain clients, these are included under "cost of sales". So in effect our "gross profit" has most of the costs stripped out. Our "net profit" essentially is what we have left over after my salary, the running cost of the office, any captal investments we have made and ,of course, the taxes.
Manker and others should not be giving advice without understanding how a particular business operates, but advice or serious opinions are not their intention, it is rather to be a nuisance.
This thread has been taking too much of my time, anyone serious about understanding the world of business from someone with actual experience of owning and running a business feel free to ask me a relevant question, just as long as it is brief. But those wanting to be an annoyance should find other threads.
i just want one aspect. what the feck does it do?
Is your Mum your accountant.Quote:
In between "gross Profit" and the "net profit" we have the accountant who would suggest we make capital investments so the profit appears much lower than it actually is when submitting the accounts. But these capital investments are "one off" expenditures that add to the assets. The capital investments we have made "appreciate" in value over the long term i.e. property for the business.
If you've got a qualified accountant, I bet you my posh house that she didn't say that.
You do know that capital aquistions have no place in the P&L, only revenue aquistions - if you don't I'm sure your accountant will ... or will she.
Seriously, I could spend a good 5 or 6 minutes writing why the above and the rest is rubbish but I think I've shown you up enough.
Btw, nice googling for the definitions of net and gross profit - can't believe you didn't know before, mr entrepreneur :lol:
:lol:Quote:
Originally Posted by Robert00000
My favourite bit is where he offers business advice, just as long as the question is brief.
Are your outsourcing costs tax-deductable as a business expense, when the supply is made outside of the UK. Can you also reclaim VAT on the cost.
Sorry that's two questions, but they are quite short.
Quote:
Originally Posted by Robert00000
At last, some honesty... :P
Why do you have an obsession with the "profit and loss" accounts? To value a business you must look at it in its entirety, I'm begining to think your understanding of accountancy is limited to this one area. Anyone with any intelligence would also look at the assets the business has added with the profits it has made.Quote:
Originally Posted by manker
Anyone who has even the slightest understanding of the business tax system will know you can write off expenses like a pair of shoes, a car or even a building for your company. But unlike most, the important purchases we have made (on the advice of our accountant) actually appreciate in value and not depreciate.
The rest of the what i wrote is your embarrassment. You claim to be an expert on "outsourcing" yet you seem to be missing the greatest benefit of it, the reason so many british and other companies choose to outsource abroad i.e the cost savings.Quote:
Seriously, I could spend a good 5 or 6 minutes writing why the above and the rest is rubbish but I think I've shown you up enough.
If whomever you work for is employing you in the capacity of an advisor on "outsourcing" I would be seriously concerned.
This illustrates how your mind works, I knew the definitions beforehand, I have an accountant who advises me on these matters. I used the google defintion so people here could use it as a reference, and not just rely on what i tell them.Quote:
Btw, nice googling for the definitions of net and gross profit - can't believe you didn't know before, mr entrepreneur :lol:
I think manker is not only insulting the intelligence of people here but is also having an adverse effect on those who are serious about learning the ways of real business.
I would advise anyone considering starting their own business to seek expert advice from professional business advisors.
Quote:
Originally Posted by Robert0000
Tanks for that informative view on buisness.
I look forward to next weeks installment of pure pish.
Helps with the sleeping, ya see.
Happy to missie :naughty:Quote:
Originally Posted by missie
wtf?Quote:
Originally Posted by Robert00000
don't :naughty: her. i think it's quite clear she wants you to get hit by a train :snooty:
Happy (something) to you also.
I run a buisness too, but mine is a non profit org.
Tank hell there is funding and advice to help us knobs out, eh? :happy:
:lol: I seriously think I just pished myself. :lol:Quote:
Originally Posted by GepperRankins
See it's not just what you plagiarise that gives you away, it's the way you write it that shows you don't atually know what it means. Demonstrating that you are the very person you describe as having " ....even the slightest understanding of the business tax system ...."Quote:
Originally Posted by Robert00000
You're a fantasist and a pest, eveyone knows that.
You can't - cars and buildings are capital expenses. It's impossible to write them off to decrease your tax.Quote:
Originally Posted by rtpl
You can claim up to 25% of a cars value and sometimes you get a 2% industrial buildings allowance but you can't write it all off in the same tax year.
Rob doesn't understand shit.
i write of cd's, dvd's, going to movies, vacations, taxi's plus all the other usual stuff
WTF, you're just comfirming what i've been saying. The point is you can reduce your tax liabilities by re-investing the profit within the business and you just confirmed that. But i wont claim to be an expert on tax, thats why i employ the services of people who are.Quote:
Originally Posted by DanB
@Gepperrankings, I doubt she wants that, she would gain more pleasure if she hacked me to death with an axe :ph34r:
@ MissieBetter you than me. I like to make money :01: maybe when i have enough one day i'll give some to charity :naughty:Quote:
I run a buisness too, but mine is a non profit org
That's not what you said tho', you mentioned specific things which Dan has now said that you can't write off against your tax.Quote:
Originally Posted by Robert00000
You are googling stuff about business, misunderstanding it, posting here, making an arse of yourself, retracting what you said and generally being a twat.
The really sad thing is that you are keeping it up, in spite of the fact that everyone else knows it is a fantasy character you created for the interweb.
What's the point, have you no pride.
Maybe one day you will have the business you dream of, best of luck. However until then it would be better to put your efforts into achieving it, rather than trying to impress people with what you may one day become.
That's a bit of business advice by the way, take it or leave it. It's no skin of my .... etc.
As I have said before you can believe what i say here or not, its completely your choice, i frankly couldnt care less.Quote:
Originally Posted by JPaul
The character here is not fantasy, its me. Maybe i sometimes dont take the time to explain things here as much as i should and some people start making presumptions (namely manker), but i honestly have better things to do than answer every question everyone asks.
The only thing I "googled" was the definitions for gross and net profits, and reason for that was so they werent my own, and people had elsewhere for reference.
To clarify what we have been discussing here, 1 - Outsourcing. I stated it was the reason for our high margins because we employed the services of lower cost workers outside the UK. Manker said outsourcing" costs more money
Will be back later to complete this
Obviously.Quote:
Originally Posted by Robert00000
These are called Capital Allowances and are what are allowable against taxable profit. A business can depreciate its assets anyway it likes, over 1 year or over 20, reducing balance or straight depreciation. However, it matters not one jot to Gordon Brown, as for tax purposes one must use the Treasury CAs and the set rates provided. Investing in Capital Assests purely to soak surplus cash and prevent it being taxed is ok but it will play havoc with your "return on capital employed" ratios.Quote:
Originally Posted by DanB
Sometimes assets are sold, such as a company car, If, on disposable, the value of the realised asset is greater than the written down CAs value then a taxation balance is charged.
The only things that one is allowed a 100% write off in year are computers - and this for only small businesses (Treasury defintion of business size only).
Of course operating expenses are deductable from Gross Profit ... shoes (safety, for the use of) being a good example.
One also has to be careful with investments in items classed as Goods and Chatels (i.e. the missus) as these will be subject to Capital Gains tax on their disposal if a profit is realised.
There are all sorts of other things going on such as rollover, 1980s tax rebasing (twice), change of use etc., which we should all just walk away from and pretend they don't exist.
I hope this makes everything as clear as a pint of Guiness. :)
Indeed it does.Quote:
Originally Posted by Biggles
Maybe I should take your lead and go on to post a wee epistle about deferred taxation as it follows on nicely from there :happy:
That quote from Dan; I wrote it at his house and had absolutely no recollection of it whatsoever until now. It's cheering to know that I can clerk with the best of 'em even when slightly inebriated :01:
As long as you don't mention VAT.Quote:
Originally Posted by manker
I did once but I think I got away with it. :shifty:
I won't if you don't :ph34r:Quote:
Originally Posted by Biggles
You could help perpetuate the rumour I started recently - that they did away with it in the recent tax+hmce merge.
I think it's working :naughty:
I like VAT as a concept, as opposed to direct taxes.
Always have done.
It sucks having to charge it to non-VAT registered companies or individuals.Quote:
Originally Posted by JPaul
It like the govt has decided to make my services taxable to pensioners (for example) but not to multi-million pound companies.
Tell the companies to register then.Quote:
Originally Posted by manker
As to the individuals, do it cash in hand. There's no VAT on cash in hand work.
An accountancy rod! :lol:Quote:
Originally Posted by JPaul
Feck arf, VAT luva.
Are you telling me that when I got the work done on the house and the builder chappie took cash, that he then paid VAT on it. Arse de moi.Quote:
Originally Posted by manker
Only in bony Schottland would such disingenous defraudation of the hmceinlandrevenue, or whatever the feck it is now, take place :snooty:Quote:
Originally Posted by JPaul
We are a pragmatic people.
I work half of the year "under the table".Quote:
Originally Posted by JPaul
My knees are just fine.
Peace bd
Finally someone who knows what he is talking about. It corresponds with the advice i obtained.Quote:
Originally Posted by Biggles