Last week I talked about turnover, this week it’s What are your business profits?
Most people see profit as the difference between money in and money out. When people say money, they mean notes and coins, what’s in their bank account. That sounds nice, and easy to calculate. However, we are talking about the world of numbers and business here!
Welcome to another weekly episode of I Hate Numbers. My mission is to inform, inspire and educate you to get closer to your numbers. This is a must do if you want to make money from your business and are not run it as a hobby.
Profit is not measured in terms of money in and money out. When you calculate profit it’s a completely different ball game.
What about accounting terms do you need to know?
In this podcast I am going to look at four jargon words. Don’t worry, I will convert that jargon to normal speech!
The four key terms I’ll be de-jargoning, all necessary to understand What are your business profits.
- Turnover
- Cost of sales
- Expenses
- Incurred
How you calculate profit in your business
Profit is about measuring your economic activity and converting that into numbers. For an accurate calculation of profit, we apply the principle of number dating. This is a key accounting rule known as the ‘matching principle’
In this podcast will talk about the two main profits in your business, gross profit, and net profit.
Listen to find out more.
Conclusion
Above all, you need to know what your business profit is. This week’s podcast tells you what you need to know, calculations, tips, and advice.
Listen to find out more.
I love to help business owners connect with and understand their numbers, improve their attitude to money, make more profit, save tax and time.
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Links
https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288
https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins
https://www.stitcher.com/podcast/proactiveresolutionss-podcast
https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/