How to read the tax info report
To begin viewing your "Tax Info Report" go to the "Reports" tab and click "Tax Info Report" in the "Finance" section.
Next, you can choose the year for which you'd like to view a report.
The entire report may not fit on your screen, you will scroll to view it all. You can choose to print the report by clicking the print button in the top right. I am going to break apart the report into sections for explanation.
The first three sections are Income, Expenses and Net Profit.
Income is generated from your sales invoices. Every time you create an invoice in Pink Office the sale is recorded in the Income section of this report. The row titled "Retail Sales Income" is the amount of money you actually collected. To see the amount of retail product that left your shelf for contest purposes please view first column in the "Total Sales by Item Type" row at the bottom of this report. The "Sales Tax Collected" row also comes straight from your invoices. This is a total of all the sales tax on every invoice for that time period. The Shipping Income is also from your invoices. If you charge a customer shipping, enter that on an invoice and it will appear in this row as shipping income.
Next, you will find the Expense section. The three expense types boxed in green are default expense types in every Pink Office account. When you create a manual order or import an order to Pink Office (being careful to mark the order complete and add a payment to it) this expense information is collected. Notice the product expense is recored in wholesale. This is the amount you actually paid for the product. The tax is the tax you paid and the shipping is the shipping you paid. All other expense types are data that has been manually entered into the Expense section of Pink Office by you, the user. It is wise to record every purchase that you make for your MK business. Recording your expenses will help you to understand how much money you are making and where you can cut corners.
Next is the Net Profit. This is simple math. The Total Income less the Total Expenses equals your Net Profit.
In the next section we will look at mileage and the breakdown of your sales.
Mileage is added from the Money tab. You can record how many miles you drive to and from appointments, bookings and events. You can set up multiple vehicles. If nothing is recorded in the appropriate section, no information will appear on the report.
Last we have the purchase totals by section. Again, this is an in depth view of information found earlier in the report. Notice the line in the Expense portion above titled "Wholesale Purchases." This includes both section 1 and section 2 purchases. In this section below you will find a breakdown of purchases by section. Section 1 and 2 are separated then recombined with the same total found above.