How to Maintain Turnover During a Pandemic

Rancakmedia.com – In this article, we will talk about how to maintain turnover during a pandemic, the meaning of turnover and the difference between turnover and profit? Turnover during a pandemic What is turnover, if you ask? The definition of turnover refers to the amount of money from the sale of certain goods/services during the sales period.

Yes, both are often discussed in business and business matters. Because both are inseparable components of income company. Unfortunately, people often exchange word turnover and profit in reality. Would you like to know more about its true meaning? Check out the discussion below.

What is Sales?

Turnover is the amount of money from sales during the sales period of certain goods/services. Business people usually use the calculation of the sales period once a month. While turnover is better known as income according to Investopedia. It means,

Turnover is income generated by regular business activities and includes discounts and deductions on returned goods. Sales is the total value of business sales in a certain period.

In short, turnover represents the company's total sales revenue for a period without cost reduction. Or just called “gross income”.

How to increase sales

How to Maintain Turnover and Increase It During a Pandemic

There are techniques or turnover strategies to boost sales.

However, the discussion is too long because there are too many. I created a separate article on how to increase turnover for this purpose.

What is Profit Turnover During a Pandemic?

Profit is the difference between the company's total sales (turnover) and the company's production costs. The definition of profit above refers to the understanding of profit according to Wikipedia, which means profit and profit,

The short formula is profit = turnover – costs. When the result exceeds 0, the company earns a profit. Conversely, if less than that means a loss for the company. In the end, profit can only be called net profit.

What is the Difference Between Sales and Turnover Revenue During a Pandemic?

The difference between costs and profits is in the calculation of turnover. Gross revenue is often referred to as gross turnover. Profit is net income. Equivalent turnover minus costs or often called net.

Let's look at the calculation formula to make it clearer.

Let's look at the calculation formula to make it clearer.

How to Calculate Sales?

The formula for calculating turnover is quite easy, so turnover (TR) = selling price (P) x total sales (Q). Or TR= P x Q. Or TR.

For example, when a company sells 1,000 hats for 20,000, its sales turnover becomes 20,000 x 1,000 = 20,000,000 (20 million)

How to calculate sales turnover While profit has the formula profit (MP) = turnover (P x Q) – cost (C).

Or in MP = (P x Q) – C. If the company has 20 million sales and 14 million production costs, then its profit is 20 million – 14 million = 6 million.

Impact Amount

Many believe that sales volume is directly related to profit volume.

This is not always the case, in fact. Sales should ideally be higher than profits. However, this is before the costs are also calculated.

For example, a hat company would incur a $1 million cost loss if it only spent $21 million on a hat. This means that the company suffers a loss.

Company Turnover and Success

The amount of profit is directly related to the success of the company. The bigger the profit, the better the company.

Unlike the case of turnover. The number of turnovers cannot be used as a reference to assess the success of the company.

This is because turnover still includes costs. If costs are greater than turnover, the company incurs a loss.

Therefore, business people often use the word turnover to learn how much they manage. It's not how much money you get.

Balance Sheet Turnover

Profit is calculated by subtracting the total cost of production as net money generated by the company.

The profit position on the balance sheet is at the bottom of the list. Once all costs are listed: production, wages, administration, marketing and taxes.

Meanwhile, turnover cannot be classified as pure money, because it also contains receivables.

For example, the company's monthly turnover is 30 million. The goods sold by the company may not be immediately paid for in cash, but in accounts receivable.

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