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Comments for https://www.popupbookkeeping.com/ Bookkeeping for Your Boutique Tue, 03 Jul 2018 20:43:04 +0000 hourly 1 https://wordpress.org/?v=6.9.4 Comment on Quarter 2 Reporting, Important for Small Business to Report Quarterly by popupbooks https://www.popupbookkeeping.com/quarter-2-reporting-important-for-small-business-to-report-quarterly/#comment-3 Tue, 03 Jul 2018 20:43:04 +0000 http://www.popupbookkeeping.com/?p=310#comment-3 In reply to DEBORAH PERRAULT.

HI Deborah! Great question! The gross profit margin for our industry is between 40-60%. If you were say only making a 20% margin you may be in a red flag category if they don’t see you liquidating inventory to go out of business. It would be questioned that you were hiding income to deter paying taxes. Your net profit would in turn be negative year after year in some cases and the IRS would look at it like you were avoiding taxes. Having roughly the same profit margin from quarter to quarter is a good indicator you haven’t missed anything unless you know you donated or wholesaled inventory in that quarter to warrant a decrease in profit margin.

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Comment on Quarter 2 Reporting, Important for Small Business to Report Quarterly by DEBORAH PERRAULT https://www.popupbookkeeping.com/quarter-2-reporting-important-for-small-business-to-report-quarterly/#comment-2 Sun, 01 Jul 2018 19:18:38 +0000 http://www.popupbookkeeping.com/?p=310#comment-2 Why is gross profit margin so important? Does it trigger audit with Irs? My % is within range, just curious. Thank you

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