Year to date is total period starting from this year and will be upto this date. It means, there is difference between year to date and accounting year. Accounting year is calender year which starts from 1st April and closes on 31st march. But year to date may be the period between this calender period.
Main reason of explaining the year to date to show whole financial performance upto date. Mostly this will apply on the independent contractors who make their income statement after completing the contract. In contact will complete before accounting year, this income statement will show year to date net income.
Calculation of Year to Date Net Income Procedure :-
1. Fix your year to Date Period : It may be 1st Jan. to 31st May or 1st Jan to 30th Sept.
2. Calculate All Earnings in this Period : You should total of all your earning in this period.
3. Calculate All Expenses in this Period : All expenses which you have paid or payable, you should add.
4. Compare All Earnings and All Expenses : Now, for calculating year to date net income, you should compare both earnings and expenses in your year to date period. If total earnings will more than total expenses, it will year to date net income, if total expenses will more than total earning, it will be year to date net loss.
Main reason of explaining the year to date to show whole financial performance upto date. Mostly this will apply on the independent contractors who make their income statement after completing the contract. In contact will complete before accounting year, this income statement will show year to date net income.
Calculation of Year to Date Net Income Procedure :-
1. Fix your year to Date Period : It may be 1st Jan. to 31st May or 1st Jan to 30th Sept.
2. Calculate All Earnings in this Period : You should total of all your earning in this period.
3. Calculate All Expenses in this Period : All expenses which you have paid or payable, you should add.
4. Compare All Earnings and All Expenses : Now, for calculating year to date net income, you should compare both earnings and expenses in your year to date period. If total earnings will more than total expenses, it will year to date net income, if total expenses will more than total earning, it will be year to date net loss.
No comments:
Post a Comment