How to Create a Profit After Tax Chart

Companies calculate profit after tax, or PAT, in order to quantify real revenue earned absent any debt. You can use PAT to gauge the solvency of a business. Plot PAT on an easy to read chart in order to assist senior accounting management during quarterly business reviews and to train junior accountants in how to prepare the company's financial reports.

Difficulty: Challenging

Instructions

1. Put the company's name on a blank document. Follow that with the title, "Profit After Tax Chart." Add a subtitle specifying the data's time frame and the comparison data. For example, write a subtitle that states, "Monthly actual vs. Budget vs. Prior year."

2. Record the company's total operating income. Multiply that by the applicable tax rate. Subtract tax savings from the total number.

3. Prepare a spreadsheet that records these operating figures. Add separate columns for the data relating to monthly actual numbers, the company's current budget and actual from the previous year.

4. Draw a scale with the number "0" in the middle. Place the maximum number on the top of the scale and the smallest number at the bottom. Choose a number to represent increments in between, such as hundreds or thousands.

5. Expect to color the chart so that the individual data is easy to spot. Insert bars, columns or lines in the main chart area to depict each number. Write the numbers on or directly above each bar.

6. Add a legend explaining how to read the chart. Specify the formula used to calculate profit after tax. Identify the meanings of different colors and bars on the chart.