How to Calculate the Profits of the Shops

Last updated 15 June 2020
How to Calculate the Profits of the Shops

The basis behind establishing commercial stores is to achieve big profits, so investors resort to opening stores, and in this article, we will look at how to calculate the profits of shops.

Expenses

The first step in determining profits is knowing all the expenses that are spent in the store and after that, all sales and their cost are calculated and note all the results are done for that, the results were going in the right way, the shop is continued until high profits are achieved, and if it is negative the store should be stopped because it is going By mistake, in this case, the shop bends to negativity and achieves a high loss, so this action must be stopped.

Store-Specific Costs

Calculating the profit of a commercial store with ease through knowing the fixed and variable costs of the commercial store

  Calculate the Profit Percentage

For example, renting the shop and sharing electricity from the fixed costs. As for the workers from the variable costs, this must be calculated when estimating all the expenses of the store.

The Sales

Special costs, the sales account comes and this sale is calculated by differentiating between wholesale and retail selling, and the discount that you give to your customers must be taken into account, in addition to that taking into account the collection system that the shop owner relies on, is this sale in cash or sale in installments, and all of these sales are calculated from Through invoices, books, and receipts that show sales movement during a specific and known period of time.

Net Profit

In calculating the profits of the shop and the last result will be a tie, a profit, or a loss. If the revenues of the shop are greater than the expenses of the shop that were spent on this shop, then this means achieving profits and gains from the store, and in the event of the opposite, this means a loss and failure of the shop to a high degree. In the event that the expenses of the shop are balanced with the revenues, this case will be neither losses nor profits, that is, there is parity in the value of the store.

  Profit Margin and How it is Calculated

 You can calculate the profits for the store in two ways

Gross profit = Sales – the value of goods sold

Or by the second method, which is calculating the percentage of profit for the store in a percent:

Profit rate = net profit ÷ net sales x 100%

Also read: How to Make Profits from the Internet

اقراء المقالة باللغة اخرى : العربية

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