Recalculating Profits: Private Expenditure: Source of Money Spent
You can check whether all items of expenditure have been included in any analysis by looking in detail at the individual sources from which the money spent was drawn. This may reveal
- individual types of expenditure which have been wholly overlooked
- no revealed source for a large item of known expenditure
- a total of revealed withdrawals which is higher than the sum admitted by the taxpayer.
The principal sources are
- cheque drawings from the business (the nature of such drawings being usually easily identified)
- cash drawings from the business
- cheque drawings on a private account or some other account not in the business balance sheet
- cash withdrawn from savings accounts etc not specifically traced as having been immediately re-invested
- cash from concealed takings or profits
- cash and other expenditure from Visa/Access/other credit card accounts.
- ‘cash back’ drawn on debit cards when shopping at a supermarket etc.
- credit cards.