Statement of Earnings

Statement of Earnings

The Statement of Earnings is your Income Statement for the period. Each period this report will show the change to your equity based on your revenue for the period and your job and overhead expenses.

First, your gross profit for the period is calculated by subtracting total job costs for the period from total revenue. Total revenue is the sum of the Revenue Recordable columns from the Completed Contracts Report and the Contracts in Progress Report. Total job costs is the sum of all job costs from the Job Cost Report.

Next, your total General and Administrative expenses are subtracted from your gross profit. G&A expenses include office overhead, bidding expenses, consulting costs, and interest expenses charged on loan balances.

Then your income taxes are computed on your total revenue earned for the year. The value appearing on the Statement of Earnings is the amount added to the current estimate of income taxes to bring you up (or down) to the new estimate for income taxes. Note that if this value is negative it means you made money previously in the year, but are now starting to lose money, so you do not owe as much income tax. See the section on Income Tax for more information.

Your income tax adjustment is added to your earnings to calculate your total adjustment to equity. This amount is added to your equity from last period to get your new value for equity.

Completed Contracts Report
Balance Sheet