Profit & bookkeeping5 min read

Tax reports: gross receipts, deductible costs, and net income

The figures a Schedule C asks for, drawn from your own cost and fee data — plus inventory valuation for year-end, monthly closes, and what each plan shows.

The tax-season figures are the four numbers a US Schedule C asks a small business for — gross receipts, cost of goods sold, deductible expenses, and net business income — computed from the sales, fees, and costs already in your account.

PalmFlow does not generate or file a form, and nothing here is tax advice. What it removes is the reconstruction: a year of sales rebuilt from memory, marketplace statements, and a shoebox of receipts.

The figures, and where each comes from

Gross receipts — what buyers paid you, across every marketplace and every manually recorded sale.
Cost of goods sold — the cost basis of the items that actually sold in the period. Items still on the shelf are not a cost yet; they're inventory.
Deductible expenses — marketplace and payment fees, shipping you paid for, and every expense in a category marked deductible.
Net business income — what's left, which is the figure the return is built around.

Open Reports and they're there. The CSV export carries the same figures, so your accountant gets a file instead of a screenshot.

Inventory valuation at year-end

Below the statement, Reports shows what you're holding: total cost basis, total listing value, unrealized profit, and how many items those cover. That first number is the one an accountant asks for at year-end — what your unsold stock cost you — and it is genuinely tedious to reconstruct any other way.

Monthly closes

Each month is shown closed off on its own: revenue, costs, fees, and net for that month alone. Useful for quarterly estimates, and for seeing which months actually carried the year.

Sales tax collected and remitted

Marketplaces collect sales tax from buyers and remit it themselves under marketplace facilitator rules. That money passes through you — it is not revenue, and it is not yours. PalmFlow keeps it out of your income figures entirely and shows it separately, month by month, with orders, tax collected, revenue, and the effective rate.

That breakdown is an Ultra feature. The income figures above are Pro.

What each plan shows

Reports behave differently by plan, and the difference is worth knowing before you go looking for something:

Free — a rolling 7-day profit-and-loss view. Monthly closes, the platform breakdown, and inventory valuation are not shown, and date ranges are fixed.
Pro — the full profit-and-loss with custom date ranges, monthly closes, platform breakdown, inventory valuation, and the tax-season figures.
Ultra — everything in Pro, plus the month-by-month sales tax breakdown.

These figures are only as good as what's in your account. Items missing a cost basis will overstate profit, and expenses you never recorded can't be deducted. Importing your existing records is usually the fastest way to make a part-year account complete.

Common questions

Does PalmFlow produce a Schedule C?

No. PalmFlow gives you the figures a Schedule C asks for — gross receipts, deductible expenses, and net business income — drawn from your own sales and cost data. It does not generate or file the form, and it is not tax advice.

What reports does the PalmFlow Free plan include?

Free includes a rolling 7-day profit-and-loss view. Monthly closes, the platform breakdown, and inventory valuation require Pro, as do custom date ranges and the tax-season figures.