Monday, December 12, 2011

What months would a year to date profit/loss cover?

If a profit and loss is due November 25, and in it a year to date profit and loss statement included, would that mean January to October? Would it be one statement to cover all those months or a separate one for each of the months? This is for a self employed person for their mortgage lender.|||If a profit and loss statement is required and its for the current year, which has another month to run - normal statement is for a continuous 12 months - usually Jan 1st, 2009 thru Dec. 31st 2009. Just extrapolate (that is figure out average months P%26amp;L and use it to demonstrate your income x 12, because that's what the bank needs in order to qualify you for a loan. Like Jan - gross 3,050 - Feb 4,075


March 4050, April 3950, May 5500, etc. What you do then is total all your months that you can account for - and divide by that number - lets say 11 months - and you get an average and you add that to your last months income (Dec. 31 - ) If this is too complicated for you - then get an accountant to help you figure out your P%26amp;L.

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