How to keep profit records
Video: How To Track Business Expenses and Income in Excel! (Free Excel Profit and Loss Statement) 2024, July
At trade enterprises, it is necessary to keep a record of activities in order to keep abreast of the results of the current period. Since the main direction of the trading company is making profit, it will be this that will be the economic indicator of the store.
Instruction manual
1
Consider the store’s profit for any period of time that you consider necessary. Most often they add up monthly revenue. For this purpose, audits are carried out, according to the results of which certain figures are already being output. They include the cost of purchasing the goods and profit from the sale. When subtracting the purchase costs from the proceeds, they get a result called gross income.
2
Calculate your net profit. For this, it is necessary to calculate all monthly expenses, which include the rental of a store and storage facilities, electricity costs, staff salaries, various purchases and purchases, as well as fines. Indicate, for example, the cost of detergents or the purchase of equipment such as, for example, shelves or display cases. Add up all the expenses. Subtract the sum of all expenses from gross income. The resulting value will be the net profit of the store, which you can dispose of at your own discretion.
3
Calculate the planned profit of the store. This is necessary to enable further planning in order to expand the range and sales area or purchase additional equipment. Not always the planned profit coincides with the real one, so do not forget to take into account the error, which consists in the actual reduction or increase in expenses or the sale of goods. Be sure to include seasonality of sales and possible equipment malfunctions here.
4
Multiply the planned sales by the margin, getting the value of the estimated revenue of the enterprise. Next, subtract all expenses from the planned revenue according to the scheme already known to you. So you get the most accurate value of the planned profit. In some cases, it is additionally required to add sponsorship (gratuitous investment) to gross profit.
