Your Workspace "Profit" is NOT what your accountant will say that you've earned — Workspace doesn't have that information.
But it IS a handy way to see how much money you're making on your sales. Your accountant would call this the "contribution" or "gross profit" on sales. Just bear in mind that it doesn't include any of your overheads, including you!
Workspace makes the same calculation when you're setting up price lists, as a way to work out how realistic your proposed prices are.
How it's calculated
For transactions where the goods are delivered by Queensberry, Profit is calculated as the value of the retail sale minus these costs:
- Any tax you'll have to pay on the sale (e.g. GST or VAT)
- The production cost (Queensberry's invoice, excluding tax)
- Recovery of any payment processing fees charged to QBY (normally zero).
You can see all these amounts in the Sales Tracker transaction listing.
Points to note
- The GST or VAT charged on Queensberry's invoice is NOT deducted from the Profit as this is reclaimable if you're registered.
- If you're not registered you shouldn't be charging GST/VAT, and won't be able to deduct the tax charged by Queensberry.
- If you're receiving payouts directly from Stripe, the processing fees won't be deducted as they're not visible to Workspace.
- The wholesale cost of any third-party goods that you're selling won't be visible to Workspace either.