Why is it important to add rows for every expense the company inc

Adding rows for every expense the company incurs is important for several reasons. Firstly, it helps in accurately determining the gross historical expenses of the company. Secondly, it aids in predicting future expenses based on past data. Lastly, it is crucial for calculating the profit margin, which is done by subtracting total expenses from total income. This detailed record of expenses can also help in making allowances for major one-time purchases or gross expenses if necessary.

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Create a spreadsheet – where you list past and future years across the top columns, and income and expenses down the side rows. Total all income sources – create rows for every income source. After what you've made from each income source is itemized, total them up to determine your gross historical revenue. Lastly, make predictions of your income growth rate for future years by multiplying actual revenue by 2.5 or whatever percent makes the most sense based on your historical numbers. Total all income sources – add rows for every expense your company incurs. Next, total them up to determine your gross historical expenses. Then, predict your future expenses. Determine your profit margin – here, you'll subtract your total expenses from your total income to determine your profit margin. It is important to make allowances for major one-time purchases or gross expenses if necessary.

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