Tag: sales

What is Net Profit Percentage?

Net Profit % before/after Tax = Net Profit before or after Tax /Sales Net Profit % before/after Tax shows the profit per R1 of sales after all expenses, excluding/including tax Higher the Net Profit %, the higher the profitability, after expenses

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What is Gross Profit Percentage?

Gross Profit % is also known as Gross Margin % Gross Profit % = Gross Profit / Sales Higher the gross profit %, higher the profitability of business, after direct costs

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What is Net Profit?

Gross Profit Less Operating Expenses  = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses, available to the owners of the business  

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What is Gross Profit?

Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs of making a product  

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What is Cost of Sales?

Cost of Sales Opening stock  Plus Purchases  Less Closing stock = Cost of Sales Cost of Sales is direct cost of product sold, shown in the Income Statement Opening/Closing stock is shown in Balance Sheet

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What is Input VAT?

Input VAT If your business is registered for VAT, you can claim back VAT charged to you on products and services Input VAT = Expense * 15/115 Input VAT is claimed from SARS Input VAT will NOT be shown under Expenses in the Income Statement

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What is Break Even?

Break Even Break Even is point where sales – expenses = 0  It is calculated in units & R. It can take months or years to reach break even. Break Even helps determine when business will reach 0 & thereafter show a profit

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What is Output VAT?

Output VAT If your business is registered for VAT, you will charge VAT on the sale of products and services Output VAT = Sales * 15% . Output VAT is payable to SARS Output VAT will NOT be shown under Sales in the Income Statement

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What is Income received in advance?

Income received in advance Income is received before the business has delivered the product or service for the benefit of customer Income received in advance is shown under Current Liabilities in the Balance Sheet Income in the Income Statement is reduced by income received in advance  (i.e not yet earned)

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What is a Sales Budget?

Sales Budget shows estimated sales for the budgeted period. It is allocated per business unit, person, area or similar basis The Budgeted period could be annual, monthly or weekly Estimated Sales is in units and R amount

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