Why do I have zero expenses?

Two sources exist for your expenses: personnel (i.e., payroll) and Other Expenses. The only way for the income statement to show zero expenses is for both of these components to be zero. Let's talk about them separately:

- Personnel. On the menu, select assumptions/costs/personnel. Then select the Employees tab. Here are some issues that could cause zero personnel expense:

  1. You have no employees. Click on the blue Add an Employee button at the bottom of the screen. Make sure the Employee Count is greater than zero. If you are a one-person company and as the founder you prefer to simply “earn” the company's profits rather than be paid a salary, that's okay; in such a case, having no employees is acceptable.
  2. You have employees, but they earn zero salaries. Make sure you enter non-zero values in the Initial Base Salary column for the employees listed.
  3. You have employees and a base salary, but you are not planning on paying them. This is also acceptable if that is your plan. It would be reflected as a Percentage Paid of 0% in the Advanced Settings page for each of the employees.
  4. You have employees and a base salary, but they are not working. This makes no sense. Make sure that the Percent Time Worked column on the Advanced Settings page for each of the employees is not set to 0%.
  5. You have employees and a base salary, but their time is being charged to COGS. This is also acceptable if that is your plan. It would be reflected as a Percent COGS vs. expense of 100% in the Advanced Settings page for each of the employees.

- Expenses. On the menu, select assumptions/costs/other expenses. Make sure that you have made some non-zero entries on this page.

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