Dragons den

**GepperRankins** · 08-24-2005, 01:50 PM

i just want one aspect. what the feck does it do?

**manker** · 08-24-2005, 02:07 PM

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.

Is your Mum your accountant.

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

**JPaul** · 08-24-2005, 06:40 PM

Originally Posted by Robert00000

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.

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.

**Barbarossa** · 08-25-2005, 09:28 AM

Originally Posted by Robert00000

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

At last, some honesty...

**Robert00000** · 08-26-2005, 12:04 AM

Originally Posted by manker

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.

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.

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.

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.

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.

If whomever you work for is employing you in the capacity of an advisor on "outsourcing" I would be seriously concerned.

Btw, nice googling for the definitions of net and gross profit - can't believe you didn't know before, mr entrepreneur

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.

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.