Sole Trader Business (ABN 1) workpaper

How the ABN 1 workpaper calculates a sole trader's net business profit or loss from GST-inclusive income and expenses.

The Sole Trader Business (ABN 1) workpaper calculates business income, business expenses and the resulting net business profit or loss. You enter amounts including GST, and the workpaper works out the GST and the GST-exclusive amounts.

 Business details

Record:

•     Client name

•     Client ABN

•     Year ending

•     Business name

•     Business activity

Business income

Add as many income entries as you need. Each entry has:

•     Description

•     Amount including GST

•     GST (Yes/No)

•     GST amount

•     GST-exclusive amount

•     Prior-year amount

GST calculation

•     GST = Yes: GST = GST-inclusive amount ÷ 11

•     GST = No: GST = $0

GST-exclusive amount = GST-inclusive amount – GST

Totals are calculated separately for the current-year inclusive amount, GST, the GST-exclusive amount and the prior-year amount.

Business expenses

Expenses use the same structure as income, and Total Business Expenses is calculated from all the expense entries.

Deferred prior-year loss

Enter any loss deferred from a prior year. It is included in the net profit or loss according to the workpaper formula.

Net business profit / loss

Net Business Profit/(Loss) = GST-exclusive Income – GST-exclusive Expenses + applicable deferred loss

The result flows to the relevant section of the ITR Summary.

New depreciable items

Record new depreciable items with their date, amount and effective life.

How to access

•     Go to Jobs and open the relevant job.

•     Click the Workpapers icon or navigate to Job Results then Workpapers.

•     Select ABN 1 on the Workpapers Dashboard.