Profit & Loss Statement Structure

[Dave does lawns]

I am curious what others have found to be a better structure.

Two Ideas:

1. Fuel
   • Truck
   • Machines

OR

• Fuel Truck
• Fuel Machines

[Efficiency]

First one. Then do sub categories for trucks by number.
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[dllawson]

I like to keep them separate.

Equipment fuel is totally a direct expense. You do not have an equipment "expense" if you are not using it to create "income."

Truck fuel can be more of an indirect expense, especially for owner operators. There are a lot of things you can do with your truck that may not directly create "income," therefore some of your truck expense is the "cost of doing business."

Example: You could spend $400 in fuel to go to a trade show in Orlando, and happen to take your children to Disney while you are there. That $400 expense has nothing to do with how profitable your actual jobs are.

[Dave does lawns]

Originally Posted by bohiaa

WHAT??????

PLEASE TELL ME, you dont run the two togather....
you MUST KEEP SEPERATE. EQUIPMENT FUEL is 100%
Auto is only like 53 per mile.
and then there is AG fuel

I am brand spanking new to this bookkeeping stuff and never done it myself before.

I also have a work truck and many personal trucks. I only use work truck for work and seldom use others for work. I hope the work truck is a total cost ( ian ) if it matters.

[bohiaa]

WHAT??????

PLEASE TELL ME, you dont run the two togather....
you MUST KEEP SEPERATE. EQUIPMENT FUEL is 100%
Auto is only like 53 per mile.
and then there is AG fuel

[underESTIMATED]

Originally Posted by dllawson

I like to keep them separate.

Equipment fuel is totally a direct expense. You do not have an equipment "expense" if you are not using it to create "income."

Truck fuel can be more of an indirect expense, especially for owner operators. There are a lot of things you can do with your truck that may not directly create "income," therefore some of your truck expense is the "cost of doing business."

Example: You could spend $400 in fuel to go to a trade show in Orlando, and happen to take your children to Disney while you are there. That $400 expense has nothing to do with how profitable your actual jobs are.

Originally Posted by bohiaa

WHAT??????

PLEASE TELL ME, you dont run the two togather....
you MUST KEEP SEPERATE. EQUIPMENT FUEL is 100%
Auto is only like 53 per mile.
and then there is AG fuel

Tell me more about both posts.

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[McFarland_Lawn_Care]

Bohiaa - he IS separating them out, on both options.

#1 is the easiest then do what Efficiency said if you wanna track individual vehs or machines.

But YES, do check with an accountant and have HIM do your taxes.

Jason