What do you think of when you hear the term "half profit"?

Perhaps the popular children's strategy of only cleaning 50 % of the room - namely where parents are most likely to look - and still collecting the full pocket money? 😉

You should have a better explanation by the time the auditor talks about it ...

You will hear this term when the tax authorities want to check your turnover and profits - e.g. because something is wrong with your bookkeeping. A collection of reference rates with key figures from numerous small and medium-sized companies in various sectors is available for comparison. This makes it easier for them to identify deviations from the norm.

And one of the key figures in the guideline rate collection is the half-cash profit.

This is calculated from turnover less the cost of goods and materials (= gross profit I), production wages (= gross profit II) and general operating expenses (= half-profit).

❗ If your half-profit deviates too much from the guideline rate collection, this will definitely make the tax auditor curious. In extreme cases, they may reject your entire bookkeeping as improper and estimate the profit based on the standard rates!

👉 To avoid any unwanted surprises in the first place, we at WSB are here to advise you.
Please feel free to contact us: www.wsb-berater.com/kontakt

#Audit #Semi-annual profit #Industry rates #Collection of tax rates #TTax knowledge #FinancialInsight #WSB