How To Calculate Sales Revenue

Table of contents:

How To Calculate Sales Revenue
How To Calculate Sales Revenue

Video: How To Calculate Sales Revenue

Video: How To Calculate Sales Revenue
Video: Business - Sales Revenue, Gross Profit and Net Profit 2024, December
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Every economist and owner of a small company often needs to calculate the proceeds from the sale of goods and services in the future. This is one of the aspects of planning the activities of an enterprise, which allows you to pass crises more smoothly and work more efficiently during periods of growth.

How to calculate sales revenue
How to calculate sales revenue

Instructions

Step 1

Any financial and economic analysis of activities requires the availability and accuracy of a statistical base. To be able to reliably plan future sales volumes, it is necessary to keep a constant record of cash flows. For many companies, this advice is obvious, and accounting or economic departments record cash and current account movements on a daily basis. However, in small business, there are still small firms, the competence of the owners of which is not so high.

Step 2

Having in hand the statistics on past sales, in order to calculate the sales revenue, analyze the dynamics of the current year against the background of previous years. To do this, compare similar indicators of the previous year and the current one, for example, the revenue of previous months. Consider also changing the implementation structure if it was significant. During the crisis in many sectors of the economy there is a decline in sales and production. But under the same conditions, other firms make quarterly turnover in a month. The economy of each company is individual.

Step 3

In addition to the sales revenue in absolute terms, also analyze the sales volume in physical terms. Calculate the percentage of the average change in magnitude. Consider also the seasonality, if it is inherent in the business. To calculate revenue from sales in the future, increase (or decrease) the revenue of the corresponding period of the previous year by the obtained indicator.

Step 4

To calculate the sales proceeds more accurately, do not forget to take into account the change in inflation. It may well be that with a similar level of revenue in absolute terms, past sales were better quantitatively. Such a preservation of sales volumes with a general rise in prices is actually a recession and requires the adoption of certain management decisions.

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