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Please help me work out this calculation

3 replies

Smallbusinessstarter · 13/02/2021 13:24

Hi all,
Can somebody please clarify a straightforward sum. Just updating my accounts from a fairly new part time business venture. I’m recording the % difference in profit and loss, comparing this tax year with the previous. All fine for the 11 months when months for both years made a profit. However, my mind has gone blank when it comes to calculating the one month that made a loss the previous year and the same month made a profit this year. Eg May2019 overall loss - £105 and May 2020 profit +£2564.55. I understand to work out the difference i am just ignoring the minus and adding to the profit figure so the difference between the two years is increase of +£2,669.55. I am stuck when it comes to working out the % difference though. It’s the difference over -£105 or £2564.55 x100?
Maths is clearly not my strongest point so please don’t be too harsh if you think this is obvious and I should know how to work this out. These are example figures so the formula would be useful instead of the the answer to my made up figures!

Also, I don’t think I’ve articulated this very well but hopefully you can understand!
Thanks all.

OP posts:
ChilliWillies · 13/02/2021 13:30

Divide £2564.55/100 =£25.64(1*)
£2564.55+£105=£2669.55
£2669.55/25.64= 104.1%

ChilliWillies · 13/02/2021 13:31

1% not 1*

ForensicAccountant · 13/02/2021 21:31

You don’t really have a base profit to work with as you made a loss so this is a bit pointless.
You made £2669.55 more than that same month in the previous year so I guess that’s 2669.55%.
Ideally you should club together consecutive months so that you have numbers you can compare.

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