turnover question?

helen_vasey

please tell me that I am right in thinking that your turnover is the amount of cash going in , and out, of your business. some people are telling me that turnover is the amount of profit you make surely turnover is the total amount of your sales , not the amount left over after stock, expenses etc.?

Astaroth

Turnover is the amount of income coming into the company through sales. Profit is the balance after all incomings and outgoings are taken into consideration (so interest on investments would be taken into consideration for profit but isnt normally considered part of turnover)

Mike_by_the_Sea

Turnover is money earned by a business before making any deductions for business expenses. The turnover includes receipts in cash or in kind for goods sold or work done, commission, fees receivable, insurance proceeds for loss of stock and profits, and so on. It does not include Business Start-Up Allowance (or Enterprise Allowance). Also, do not include amounts received from the sale of capital items, that is assets which are of lasting use to the business, such as business premises, plant, machinery and vehicles. Turnover should be included in your accounts when it is earned, even if you do not receive the money until later.