Your Workspace "Profit" is NOT what your accountant will say that you've earned, because Workspace doesn't know anything about your overhead costs — including you! — and so can't deduct them from the sales you make.
But bearing that in mind it's still a handy way to see how much money you'll get to keep when you make a sale, which is what your accountant would call the "contribution" or "gross profit".
How it's calculated
For transactions where the goods are delivered by Queensberry, Profit is calculated as the value of the retail sale minus these costs:
- The production cost (Queensberry's invoice, excluding tax)
- Any tax you'll have to pay on the sale (e.g. GST or VAT)
When you're setting up price lists Workspace will estimate the Profit you'd make if you sold a product at a particular price as a way to work out how realistic that price would be.
Then, as you make sales you will be able to see the actual tax and product costs in the Workspace Sales Tracker transaction listing.
Points to note
- The GST or VAT charged on Queensberry's invoice is NOT deducted from the Profit as this is reclaimable if you're registered.
- If you're not registered you shouldn't be charging GST/VAT, and won't be able to deduct the tax charged by Queensberry.
- Because you're receiving payouts directly from Stripe, the processing fees won't be deducted as they're not visible to Workspace.
- The wholesale cost of any third-party goods that you're selling won't be visible to Workspace either.
