How To Calculate The Profit Of A Store

Table of contents:

How To Calculate The Profit Of A Store
How To Calculate The Profit Of A Store

Video: How To Calculate The Profit Of A Store

Video: How To Calculate The Profit Of A Store
Video: How to calculate profit of wholesale business l Profit and loss in retail business l Business margin 2024, December
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Each store or trade enterprise must keep a record of its activities in order to know the results of the current period. The main focus of a commercial enterprise is making a profit. This is the economic indicator of the store's performance.

How to calculate the profit of a store
How to calculate the profit of a store

Instructions

Step 1

You can calculate the profit of a store for any period of time, up to one day. Usually they are counted in a month. To do this, the store carries out revisions, on the basis of which certain numbers are already displayed. Add up the daily revenue for the month.

Step 2

Calculate the cost of purchasing a product sold. You will find out what product was sold from the audit.

Step 3

Subtract the purchase costs from the proceeds. The difference you get is gross income.

Step 4

To calculate your net income, you need to calculate all the expenses that were in this month. These include: renting a store and warehouse, the cost of electricity, staff salaries, fines, various purchases or acquisitions. This can be, for example, detergents, and the purchase of some kind of equipment, such as a rack or display case. Add up all expenses.

Step 5

Next, subtract the amount of all expenses from the gross income, this is the net profit of the store, which you can dispose of at your discretion.

Step 6

In addition to the actual profit, you can calculate the store's planned profit. The calculation is needed in order to be able to further plan, for example, to expand the range or purchase additional equipment, as well as to expand the retail space. The planned profit does not always coincide with the real profit, so you always need to take into account the margin of error. That is, your expenses or the sale of goods may actually decrease or increase. It is also necessary to take into account the seasonality of sales and the possibility of equipment failure.

Step 7

Calculate the projected profit as follows: Multiply the projected sales by the markup. So get the estimated revenue. Further, according to the scheme, deduct all expenses from the planned revenue. This is the projected profit, and in some cases sponsorship may need to be added to the gross profit. This concept means any gratuitous investment.

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