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Monday, 9 October 2017

How to Calculate Profit in Business

The Goal of an Entrepreneur is to make Profit, If you are not making Profit then you are loosing Capital in your Business. Here are the basic formula to Calculate for Profit after sales is made.

How to Calculate for Profit 

This can been done before or after sales, you must note that in Business, Profit is total Aim.
After you have made the Goods/product purchase direct from the manufacturers or other channel of distribution, then after all the manual processing made by you like repackaging, transportation and others that will make it pleasurable and pleasant for final consumers to buy. Then you can now take out a work book and record book, invoice/receipt etc. 
Figure out all expenses made before and after the Goods is processed. On the other side of your work book check How much is made by adding up all workers salary and dividing it up with total goods produce by them a month (amount of the Goods). Then use the value to add to other expenses made on the raw material to the finished process. 
Now, check out How many Goods produce and remove the amount Of expenses made. The reminder is the Profit. Expenses include Electricity bill consume on the product, tax, transportation (from the manufacturers to you and you to the market), other materials used.


For Profit 
Expenses - Total sales = Profit
For Expenses 
Profit - Total sales 
For Total sales 
Profit + Expenses = Total sales made. 

Note: This Formulas are proven to be accurate and correct, If you find a problem using it. Please Comment, our expert team or other readers can be of help. Most total sales take a lot of time to be determine by manual waiting for them to been seen in cash. 

Additional tips 

  • Have a Record Book 
  • Keep all Invoice, receipts, teller and other valuable details or document of your transaction made in a safe place. 
  • Ask all departments in your Business Company to keep records of what the do with the Goods. 
  • Do not cumulate debits but pay as purchase are been made and your Customers should also pay you as the receive the Goods. 
  • Avoid miscalculations. 
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  1. The purpose Why I wrote this article is to help young Entrepreneurs, know how to Calculate Profit in Business. I hope it was helpful!

  2. Replies
    1. Thanks for reading, I really appreciate it. God bless you!

  3. I was surfing the Internet for information and came across your blog. I am impressed by the information you have on this blog. It shows how well you understand this subject. ywam


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