Dear Friend,Hello and welcome. Thank you for providing an opportunity to assist you.I understand your problem and it is very much peculiar to what all people who are self employed face. Being self employed, it is obvious that your income shall vary. To tackle this problem, all the lenders that AVERAGE of last to years. You too need to do the same.While dealing with your partner's accountant, you will have to take income of last 3 to 4 years and take the average of this to make your monthly budget. This will help you a lot and go a long way in preparing the budget as well.
I am sure this would help.
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Hi Lucy,Hello and welcome. Thank you for your follow up response.To begin with, WHY is the net income zero ? You will have to concentrate on that area first. If the net income is zero due to heavy depreciation expense, or due to making provisioning, it should be added back.Can you please throw some light on this ?
This can be a little problem for you because this implies that after applying COG, either your partner is not making profits or incurring a loss on the business he does.
There are also some chances that the accounts are not properly perpared or if prepared not properly interpreted.
I would strongly recommend you seeing your partner's accountant and letting her / him know your purpose. He will help you out in best possible way.
Hope this helps. Feel absolutely free to continue the conversation.
Thank you Lucy for your kind words and appreciation.Feel free to get back to me at any moment when you need.It was total pleasure interacting with you.Warm Regards,