Results 1 to 2 of 2
  1. #1
    Senior Member iFrances's Avatar
    Join Date
    Feb 2012
    Posts
    44

    Please help with Profit & Loss Statement - I'm stuck

    BofA insists on a Profit & Loss Statement to apply for a loan mod, but my situation is unusual. The IRS considers me self-employed, because (with 4,000 other owners) I am technically part-owner of a large company. However, the company just gives me regular monthly pay stubs like an employee, plus an annual profit-sharing check. I play no role in the running of the company, other than an occasional vote and my 9-5 work there.
    The bank says submitting pay stubs (even with my tax returns, prepared by a CPA) is not enough. I also gave them the company's K1 statement that my tax preparer uses to do my taxes....not enough.
    How do I write a Profit & Loss Statement for a company that turns over millions of dollars annually, of which I am only a tiny part?
    Any help suggestions appreciated, I know zero about accounting and this is the only missing piece of my loan application.

  2. #2
    Senior Member DELL1's Avatar
    Join Date
    Aug 2010
    Posts
    390
    Quote Originally Posted by iFrances View Post
    BofA insists on a Profit & Loss Statement to apply for a loan mod, but my situation is unusual. The IRS considers me self-employed, because (with 4,000 other owners) I am technically part-owner of a large company. However, the company just gives me regular monthly pay stubs like an employee, plus an annual profit-sharing check. I play no role in the running of the company, other than an occasional vote and my 9-5 work there.
    The bank says submitting pay stubs (even with my tax returns, prepared by a CPA) is not enough. I also gave them the company's K1 statement that my tax preparer uses to do my taxes....not enough.
    How do I write a Profit & Loss Statement for a company that turns over millions of dollars annually, of which I am only a tiny part?
    Any help suggestions appreciated, I know zero about accounting and this is the only missing piece of my loan application.
    Do you have a formal compensation agreement with this company. I'm sure what they are driving is that being an owner, you can increase your pay if you see fit. If such is not the case, then your agreement would spell that out.

    The other thought is doing a P&L for the company in one column, then a second column represting your pro rata share (based upon your percentage of owneership) of those revenues and expenses.
    Last edited by DELL1; 08-04-2012 at 08:06 AM. Reason: clarifacation

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Unless otherwise noted, you can republish our articles and graphics (but not our photographs or our blog) for free. You just have to credit us and link to us, and you can't edit our material or sell it separately. If you're republishing online, you have to include all links. (We're licensed under Creative Commons, which provides the legal details.)
© Design & Copyright MoeSeo | Privacy | Contact