My sole trader business profit is $45,000. Where has the profit gone?

To work this out you need to run the Balance Sheet report as at 30 June this year and compare it to 30 June last year

Example- Profit $45,000

 

30/06/2022

30/06/2021

Difference

Assets

     

Bank

18,000

18,000

0

Accounts Receivable
(owed by customers)

18,000

15,000

+3,000

Owner Loan / Drawings

25,000

5,000

+20,000

 

 

 

-----------

Assets have increased by

 

 

23,000

       

Liabilities

     

Credit Card

1,000

3,000

-2,000

Accounts Payable
(owed to suppliers)

11,000

21,000

-10,000

ATO Debt

2,000

12,000

-10,000

 

 

 

-----------

Liabilities have decreased by

   

22,000

     

-----------

Total

   

$45,000


In Summary
-$20,000 has been taken by the owner
-$22,000 liabilities have been paid off
-customers owe extra $3,000 compared to same time last year