How to calculate the profit?
The economic indicator of the store is considered to be their profit, as a result of the realization of the sale of goods to consumers. All the work of the store should be taken into account so that according to the results of one period it is possible to calculate the profit of the outlet. With detailed and accurate accounting, the calculation of the profits can be made for any period of time that interests the owner, from 1 day to 1 year. But, as a rule, the profit of the store is calculated for the month. In order to understand how to calculate the profit, first you need to conduct an audit in the store. This is necessary so that the calculation of profit reflects a real and accurate, and not an approximate value.
We count earned
To make the correct calculation of the profit of the outlet, it is necessary, first, to add the revenue that the store received every day for a month. Next, you need to calculate the amount that the owner spent on the purchase of goods sold, sold during the accounting period. And where to get data about the goods sold? This is what the audit of documents in which information about the goods on sale and products sold contains is needed.Next, you need to deduct from the now known amount of the monthly revenue of the store expenses incurred as a result of the purchase of goods. In the end, you get the difference, which is called gross income. But gross income is not a store profit yet, since during the reporting period your store spent money on many other needs. So you:
- paid rent retail and warehouse space;
- spent money to pay for utilities;
- paid wages to their employees;
- carried out the purchase of commercial equipment, various household goods, etc.
All expenses incurred by the store during the reporting period must be added up. Then from the gross income to deduct the amount of expenses received and taxes paid by the store. As a result, you will have a figure for which you ordered the calculation: the net profit that can be used by you for any needs. Now you know how to calculate the net profit, which means you can enjoy its waste too.
Calculation of future profit
It is often required to calculate the profit that the store is only planning to receive. This is necessary when the expansion of the product range, the increase in retail space, etc. is expected. In this case, the profit is calculated approximately.To calculate the planned profit, you need to multiply the trading margin by the planned sales volume. The figure that turns out (store revenue) must be reduced by the amount of future expenses. The resulting figure will be the value of the estimated profit of the store.
How to calculate the profit of the store in the future, we figured out, now let's calculate this figure as a percentage of the revenue received. In this case, you need the amount of profit that was received by the store during the reporting period, divided by revenue, and then multiplied by 100%. The result is called profitability. The higher it is, the better your store works.