Bookkeeping tips to help you build a solid financial foundation for your business.
Want to calculate how much income you’ll make this year? It’s super easy and you can do it yourself right now!
1. Figure out how much money you’ve made each month from January through June If you don’t have an accounting system, go through your bank statements and write down each deposit and add them together for each month. On separate lines, write “January $2,000; February $3,000,” etc. Don't worry about expenses. We’re just focusing on gross profit which is before expenses.
2. Take all the numbers (January through June), add them together and divide them by 6. This will give you an estimated per month income. Now, multiply that number by 12. This is approximately how much money you’ll make in in a year.
Here’s an example:
January income $2,000
Total income $14,700
Divide by 6 = $2,450
Multiply by 12 = $29,400
That’s your projected income for the year!
Keep in mind this is super basic. It doesn’t account for launching a new product or service or getting new clients. But it gives you an idea to see if you’re on track to meet your income goal!