How To Determine The Annual Turnover

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How To Determine The Annual Turnover
How To Determine The Annual Turnover

Video: How To Determine The Annual Turnover

Video: How To Determine The Annual Turnover
Video: What is TURNOVER? Self employed and small business basics 2024, March
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The amount of the annual turnover represents the income of the enterprise from its entrepreneurial activity - the entire amount that it received from the sale of products, services or works for the reporting year. That is, in other words, the annual turnover is the gross income of the company.

How to determine the annual turnover
How to determine the annual turnover

Instructions

Step 1

Determine the indicator of annual turnover for the past period in your company. At the same time, if your organization is just starting to develop (you recently opened your business), you can take statistics on a similar industry and orient yourself on the example of your own competitors.

Step 2

Pay attention to the inflation forecast given by the Russian government for the period under review (planned year). This indicator must be indicated when planning the entire State budget of any country.

Step 3

Output the correction factor to calculate the annual turnover of the planned year. In this case, if you want to keep the turnover at a certain level, the correction factor must be equal to one. But if you expect to increase your turnover, you need to understand what indicators this is possible due to. For example, this could be through the most aggressive promotion, by updating the product range, or by raising prices.

Step 4

Draw up a plan for the implementation of the necessary activities after determining the above factors with reference to the calculated annual plan.

Step 5

Adjust your last year's result using the inflation rate for the target year (multiply these values). Next, multiply the resulting amount by the correction factor, i.e. by the amount of decrease (increment) in annual turnover.

Step 6

Break down the annual turnover by month to get the expected sales for each specific month of operation of the company. At the same time, try to take into account the specifics of your entrepreneurial activity - do not divide income into equal parts.

Step 7

Consider also that any activity of the organization, even in such a short period as one year, has its ups and downs. Track them using data from previous years, and then plan monthly turnovers (revenues) according to market changes.

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