Turnover is all the income generated by a company over a specific period. It is a vital financial term and includes cash sales, invoiced goods and services, and other income.
In simple terms, turnover is the total sales a business makes during a specific time, counting both what’s been paid for and what’s still waiting for payment.
Turnover – expenses = profit
Turnover varies from month to month for most businesses. While some companies see consistent sales growth throughout the year, others may experience a spike in sales during particular seasons.
To figure out profit, subtract all the costs from the turnover. Profit is what’s left after accounting for all the expenses.
Tracking turnover with Conta
Small business owners may create an infinite number of free invoices using Conta, an easy-to-use online invoicing tool.
Users may easily track the number of invoices that are sent out in a certain period of time as well as the total amount inside the Conta dashboard. It also offers an easy-to-use interface for effectively managing and monitoring each invoice’s payment status, making it simple to remind late payers of their payment.