simpleplan11
May 31 2004, 07:28 PM
HoboClicks.com
Profit & Loss Statement
5/1/2004 through 5/31/2004
Income
Paid Email Revenue $198.64
PTC Revenue $15.88
PTS Revenue $3.96
Banner Revenue $5.00
AutoSurf Revenue $1.20
Multi-Package Revenue $38.43
Other Revenue $3.95
Feature Ad Revenue $0.84
Payouts From Other Sites $0.58
Advertising Bubble Revenue $0.81
Currency Sold $8.35
Upgraded Membership Revenue $219.17
Total Income $496.81
Expenses
Currency Purchased Expense $6.93
Reversed PayPal Transactions $8.35
Hosting Expenses $15.00
Domain Name Expenses $0.83
Advertising Expenses $17.49
INTGold Fluctuations $0.03
E-Gold Fluctuations ($0.71)
APTROU Ads $4.40
Scammed Money Expense $5.00
Total Expenses $57.32
Net Profit/(Loss) $439.49
lgwong
Jun 1 2004, 11:46 AM
This P&L statement is not reflecting the truth. This just reflect the cashflow of yoru site. You are not counting the money earned by the members during this period. Even they are not yet paid out, these are your expense during this month.
mentol
Jun 1 2004, 11:58 AM
| QUOTE (lgwong @ Jun 1 2004, 08:46 PM) |
| This P&L statement is not reflecting the truth. This just reflect the cashflow of yoru site. You are not counting the money earned by the members during this period. Even they are not yet paid out, these are your expense during this month. |
I will have to agree with lgwong here ...
(mentol)
simpleplan11
Jun 1 2004, 04:10 PM
The decision was made to begin with that a payout expense is only recorded at the point members reach payout level. Up until this point, nothing is owed to members and we are in no way bound to pay them. If we recorded member earnings as an expense as they occurred then we wouldn't be taking into account that very often members use their earnings for redemptions.
vyga
Jun 3 2004, 03:15 AM
If a member redeems for add, that amount of money you owned to him, is distributed to his ad clickers. Member earnings is your debt! So you no way made a profit in a given month
simpleplan11
Jun 3 2004, 05:03 PM
| QUOTE |
| If a member redeems for add, that amount of money you owned to him, is distributed to his ad clickers. Member earnings is your debt! So you no way made a profit in a given month |
Current member earnigns is sitting at $250, and that is for the three months we have been open, so we are clearly making enough money to cover this. In the email that goes out to my members I am open about how much is owed to them and they can clearly see that we have enough to pay them. Also... this statement doesn't take into account the money I have accumulated at search engines and other PTR programs... the decision not to include this or include money member have earned is because in reality, a lot of this money will never be realised and with the way the GPT industry runs, a lot of money is earned and never seen.
tipsy
Jun 3 2004, 06:06 PM
| QUOTE (simpleplan11 @ Jun 1 2004, 06:10 PM) |
| The decision was made to begin with that a payout expense is only recorded at the point members reach payout level. Up until this point, nothing is owed to members and we are in no way bound to pay them. If we recorded member earnings as an expense as they occurred then we wouldn't be taking into account that very often members use their earnings for redemptions. |
lgwong's right... if your going to do a p&l statement you have to include all earnings irregardless of whether they have reached payout or not because you say you owe them nothing but that is not true that is their money even if they haven't got to payout yet... so your statement is not an accurate one.
robd1302
Jun 4 2004, 02:28 PM
| QUOTE |
| lgwong's right... if your going to do a p&l statement you have to include all earnings irregardless of whether they have reached payout or not because you say you owe them nothing but that is not true that is their money even if they haven't got to payout yet... so your statement is not an accurate one. |
If you gave your info to an accountant, they would definitely disagree. Member earnings are not expenses or losses until after a member reaches the payout level. Before that, the WM doesn't owe anything to the member, and therefore has not occurred an expense.
If a member reaches the payout level, but does not cash out, their earnings would be considered a liablility because they amount would be owed upon request, but still not as an expense. Only after they officially cash out, and were paid would it count as an expense on any balance sheet.
simpleplan11
Jun 4 2004, 06:15 PM
| QUOTE |
If you gave your info to an accountant, they would definitely disagree. Member earnings are not expenses or losses until after a member reaches the payout level. Before that, the WM doesn't owe anything to the member, and therefore has not occurred an expense.
If a member reaches the payout level, but does not cash out, their earnings would be considered a liablility because they amount would be owed upon request, but still not as an expense. Only after they officially cash out, and were paid would it count as an expense on any balance sheet. |
Thank you!!!! I am an accounting student and university and this is how I interpret it. The thing about accounting is that it does require judgement, it is not black and white, therefore lets just agree to disagree everybody. What should be agreed on is that reporting finances to members is a GOOD thing.
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