Turnover and profit are two different things, but there are still many
people who don't know the difference between the two. Turnover and profit
are closely related to entrepreneurs.
Because, turnover and profit are benchmarks for the success of a business.
The main goal of business people is of course to get as much turnover and
profit as possible.
So, what is meant by turnover and profit? what's the difference?
What is profit?
According to the Big Indonesian Dictionary, the meaning of profit is profit,
profit, or benefit. In other terms, profit is also often referred to as
profit.
Quoting the Investopedia site, profit is the financial benefit obtained when
the income generated from a business exceeds expenses, fees and taxes.
Every profit earned by a business will be channeled back by the business
owner. This profit can be saved or reinvested into the business.
In small businesses, profits are usually directly pocketed by the business
owner. However, in public companies, the company is obliged to pay profits
to shareholders in the form of dividends. In conclusion, profit is profit
after income minus all expenses, costs, and taxes.
What is turnover and profit?
Turnover and profit are two different things but people still often mistake
the two.
What is turnover?
According to the Big Indonesian Dictionary, turnover is the amount of money
from the sale of certain merchandise during a period of sale.
Quoting Investopedia, turnover is an accounting concept that calculates how
quickly a business performs its operations or sells its products.
Generally, turnover is often referred to as gross profit, gross, or revenue.
How to calculate turnover is to calculate all business operational
processes, including discounts and goods returned by buyers.
The turnover of a company is usually a reference to assess whether the
company is a small, medium, or large scale business.
Differences in profit and turnover Based on the understanding, it can be
seen that the difference between profit and turnover lies in the method of
calculation.
Turnover is calculated by adding up all income, while profit is calculated
as all income minus the cost of goods sold or cost of goods manufactured
(HPP).
HPP is the amount of expenses and expenses incurred directly or indirectly
to produce products or services.
Thus, if a businessman says his turnover, it means that it cannot be said to
be the same as his profit. The reason is, turnover is gross profit and
profit is net profit.
Turnover and profit can be obtained at the same time if a business has
increasing sales and healthy cash flow. However, turnover is not directly
proportional to profit because turnover is definitely greater than profit.
In conclusion, turnover and profit are two different things. By
understanding the explanation above, it is hoped that there will be no
mistake in mentioning and understanding turnover and profit.
