Accountant in Caloundra

Michael Andrews Taxation & Accounting Services provides a wide range of accounting services for Caloundra and the surrounding areas, including Aroona and Currimundi. Contact us to confirm whether we service your specific location.

A profit and loss (P&L) statement, also known as an income statement, summarises a business's revenues, costs, and expenses over a specific period. It provides a clear view of whether the business has made a profit or loss by subtracting expenses from total income. The P&L statement is divided into key sections, including revenue, cost of goods sold (COGS), operating expenses, and net profit. It helps business owners and stakeholders understand financial performance, monitor spending, and assess profitability. 

Tax deductions reduce the amount of taxable income, potentially lowering the total tax owed. They apply to eligible expenses incurred during the financial year. For individuals, common deductions include work-related expenses, charitable donations, and costs associated with earning income, such as uniforms or professional development. Businesses can deduct expenses like rent, salaries, equipment, and operational costs. To claim deductions, individuals and businesses must keep detailed records and receipts. Understanding what qualifies as a deduction helps avoid missing opportunities to reduce tax obligations. 

Depreciation refers to the gradual decrease in the value of an asset over time due to wear and tear or obsolescence. Businesses use depreciation to allocate the cost of an asset, like machinery, vehicles, or office equipment, across its useful life. This helps match expenses with revenue generated during the same period, providing a more accurate picture of profitability. Depreciation is recorded as an expense on the income statement, reducing taxable income.