# Full example: what did the business earn this month?

**Figures made up for this example, not a real client or a formal audit.** August 1–31, 2026; one business, two locations, USD; 15 total original records; all figures use the same supplied tax rules. The original source rows are in `profit-ledger-input-example.csv`. Companion `profit-account-completeness-example.json` supplies the period, beginning cash and checks that all needed types of record are included.

## Problem and data check

The owner can see the bank balance but needs to know how much the business earned. Loans, new stock purchases and money the owner takes out can change the bank balance without changing profit by the same amount. Each row has its own reference, supporting record, date for the accounts, date money moved (if any), currency and a note saying whether the amount is checked or estimated. The educational source confirms all six categories: sales, cost of sold goods, day-to-day business costs, depreciation, interest and tax. The $150 tax charge is explicitly supplied; no tax rules or rates are guessed.

Depreciation means spreading the cost of equipment over the time it is used. It counts as an expense but is not a new payment that month.

## Prepared summary for the month

| Item | August USD |
|---|---:|
| Money earned from sales | $4,000 |
| Purchase cost of the goods sold | −$1,500 |
| Left after the cost of goods sold | $2,500 |
| Running costs, including staff pay | −$1,300 |
| Equipment cost counted this month (depreciation) | −$100 |
| Loan interest | −$50 |
| Profit before tax | $1,050 |
| Supplied tax expense | −$150 |
| Calculated profit after all costs and tax | **$900** |

Beginning cash was $700. Receipts were $5,000: $4,000 customer sales plus $1,000 money received from a loan. Cash payments were $4,400: day-to-day business costs $1,300; interest $50; tax $150; repayment of the amount borrowed $200; inventory purchases $1,800; equipment $600; money the owner takes out $300. Thus cash grew **$600**, and ending cash is **$1,300**.

Why the change in available money differs from profit: $900 + $100 equipment cost counted without a new payment − $300 inventory purchases above sold-goods cost + $1,000 loan receipt − $200 repayment of the amount borrowed − $600 equipment − $300 money the owner takes out = **$600**. Every difference is explained. The $900 result applies only to the complete set of made-up records supplied for this example.

## What to do with the result

1. Keep money received from a loan out of sales, repayment of the amount borrowed out of day-to-day expenses and equipment separate from depreciation.
2. Use the included income/expense event template to record the date a sale or cost belongs in the accounts separately from the date money moves. Record stock bought separately from stock sold.
3. Check the calculation against receipts, invoices and bank balances. Make sure every account is included. Ask the accountant how each payment to the owner should be recorded. For a real customer return, keep the reference to the original sale and the period it belongs to.
4. Owner confirms this exact statement version, then uses it alongside the 30-day payment calendar for decisions. The $900 profit does not by itself mean the owner can take out $900. First check future payments and how much money needs to stay in the business.
5. For each difference you cannot yet explain, record where it appears, the amount and who will check it. Do not hide it by adjusting profit or assume omitted costs are zero.

## Follow-up and limits

One follow-up is proposed **14 days after confirmed use of the agreed recording method**, to check some new records, compare them with the bank balance and confirm that loans and equipment are recorded correctly. Agree its exact date before the order is confirmed. This is not a promise to produce an additional month's accounts within this one-month service.

Prepared: month statement, explanation of why profit differs from money available, correction list and recording instructions. Real application or measured benefit: **none**. No client payment, tax advice, audit opinion, savings or profit growth is claimed.

The $149 one-off pilot service covers one completed month, one–two locations, one currency and up to 1,000 total original rows in usable exports, without rebuilding old accounting records. It has no subscription. Verify whether the records are complete and usable and the published final price/terms before any order or payment.