Property Valuation Mistakes That Will Cost You $1m Over

Commission seer I shouldn’t be listening payment fee sit should really just be crew sales and then you subtract refunds to get to tourney sales at the bottom of that the expense categories are also a little bit weird we don’t have general and administrative sales and marketing research and development instead we’ve split things into much more granular categories down here also if you notice none of these categories actually has quite a lot and spending and that’s because my own salary is not included.

Here since i am taking money out of the business in the form of a dividend or some type of annual bonus payment i paid it myself I’m not even listening Property Valuation Melbourne at on the income statement and I don’t think of it as an ongoing business expense but of course again if we were acquired by someone else or if we eventually want to go public if we got much bigger we’d have to list that we have to count my own salary somewhere here and then finally the income tax rate here is quite a bit lower than what it probably would be for a large public company.

The effective tax rate is around twenty-five to thirty percent most public companies are taxed more like thirty five to forty percent in the US so this is something else that we have to adjust in future periods so those are the main problematic areas to adjust for all that and to come up with normalized version of the statements we might have something like this where we list gross sales and net sales at the top and all we do to move from one to the other is subtract refunds and allowances and we might put all the operating expenses in more normal categories will take out anything that’s intermingled like travel expenses will also add in my own salary and allocated to these categories as appropriate we didn’t change anything with the taxes in the historical period.

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