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Profit and turnover

Accountancy

What is the difference between profit and turnover?

Gomathi K

CA Final

★ 40K+

03-Aug-20 12:14

351

Answers (1)

Turnover is your total business income during a set period of time â?? in other words, the net sales figure. Profit, on the other hand, refers to your earnings that are left after any expenses have been deducted. Both profit and turnover in business measure earnings. But turnover measures them before taking out major costs. Profit is residual earnings after costs. You can also view it as the money your business gets to keep after reducing the net sales figures by all expenses.