My question to answer today is What turnover means in business. It doesn’t help you that there are different terms for turnover, for example revenue, sales, and takings.
In this short blog-vlog I will
- Tell you what turnover is
- How to calculate it
- Why turnover is important.
- Why turnover is not a key financial priority.
What turnover means in your business is important
Turnover is a big deal. Firstly, it is the standard term used by UK limited companies and when accounts are filed. HMRC use it in for the self-employed , large and small , and also for partnerships, large and small . Turnover also comes up for the Fifth Self Employed Grant. It doesn’t help that there are different terms for turnover – revenue, sales, and takings – but don’t worry! I’ll explain.
You might be wondering What turnover means in your business, why else this is important? Your turnover is not the same as your profit, and is not the same as money in your bank account.
Understanding your turnover is not just important because it helps us understand our performance against other companies; it also tells us whether we're making enough profit to stay in business, and or invest more into what we do.
Above all I will also tell you how to measure turnover and why turnover isn’t your key financial priority.
Watch this video for more information on what turnover means in your business.
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