Accounting


Business revenue is taxed only after expenses are subtracted (so on profits), while all the earnings of salary and wage earners are subject to taxes. This assists businesses to expand and helps link revenue to spending on productive activity.

Salary and wage earners work expenses are made by their employing organisations. Personal expenditure on homes, medicine, food and education is not, and is not deductible from taxes.

However, personal expenditure is necessary for productivity and fulfilment. This expenditure is assisted by the shared base income, through universal direct payments and indirect payments like free education and health care.

Incomes from work are dependent on the revenue of organisations, so organisations’ financial situations need to be known to ensure fair treatment. This requires open and transparent accounting.

To start a business, the shared base income may be all that is required, but as revenues increase, the business will be able to pay participants and pay company taxes.

If a business’s expenses are greater than earnings it runs at a loss. The cost of producing its product must eventually be less than the revenue from selling it or a business will have to be dismantled.

In common purpose organisations the revenues over expenses (the profits) are saved, paid to shareholders or reinvested in the organisation after they have been shared in half between the organisation and society. They are shared as people’s incomes are shared, half for them and half for others.

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[Excerpt from The Common Purpose Manifesto]

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The common purpose, principle and ways are the fundamental message to convey and are not time dependant. They form the basis of The Common Purpose Manifesto.

Visit my Thoughts blog for other relevant postings or view my profile where you can also send me an email.

[NOTE: This site, and the manifesto, have nothing to do with 'Common Purpose' leadership training in the UK or those that rail against them.]

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