Service based business with no physical inventory, after entering Gross Income it shows up as a loss.
I have a small business (partnership 50/50) where we provide a service (web design). We made a profit of, lets say $10,000.00 which I've entered as the Gross Profit. I have entered zero expenses just to simplify things. On the Business Summary it shows that we have an Income (loss) before adjustment of $10,000 and I my share of income (loss) is $5000. What have I done wrong? Should I have entered some amount in Cost of Goods Sold (currently at $0)?