Back to: Store Management SS 2
Welcome to today’s class!!
We are thrilled to have you in our class!!
In today’s Store Management class, we will be learning about Meaning of Turnover
Meaning of Turnover
Also known as income or gross revenue, turnover is the total amount of sales you make over a set period.
This could be weekly, monthly, quarterly or annual turnover – whatever time period you choose to measure. Basically, it consists of all the money that comes into your business before any expenses and operating costs are deducted.
Turnover is not to be confused with profit which measures your overall earnings and is reached by subtracting your total expenses from your total sales.
It can also refer to labour turnover or turnover rate – the number of employees which leave your business within a set period.
Knowing your turnover figure can help when trying to win over investors. It can also function as a guide when setting profit margins and assessing how to reach profit-related goals.
For instance, income which falls short of targets indicates poor sales. This can give you a heads up that something’s not right, as well as a chance to rectify it. Examples of where you might be going wrong include prices being too high and/or a weak marketing strategy.
In Business, it is very important you record your sales turnover from the start. This involves recording it at the time of the sale, not when an invoice is raised or cash changes hands. It must take into account any expenses a customer pays for too, such as delivery costs. Commission and fees should also not be deducted at this stage.
In summary, turnover is the total amount of money your business receives from the sale of goods and services – minus discounts and VAT. Turnover doesn’t take into account things like bank interest or money received from the sale of assets
Evaluation
Explain what you understand by Turnover?
Reading Assignment
Mention five things that are not calculated in Turnover
Weekend Assignment
Identify five important details you must include when calculating a Turnover.
We hope you enjoyed today’s class. In our next class, we will be talking about Revision.
Let us know your thoughts and questions in the comment section, and we will attend to them as fast as we can.
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