How to calculate the annual turnover of an organization. Enterprise turnover: methods of calculation and increase What is an organization’s turnover

How to determine annual turnover

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The amount of annual turnover represents the income of the enterprise received from its entrepreneurial activity– the entire amount that he received from the sale of products, services or work during the reporting year. So, in other words, annual turnover is the gross income of the company. Just follow these simple ones step by step tips, and you will be on the right track when solving your financial issues.

Quick step by step guide

So, let's look at the actions that need to be taken.

Step 1
Determine the annual turnover for the previous period at your enterprise. At the same time, if your organization is just beginning to develop (you have recently opened your business), you can take statistical data on a similar industry and orient yourself using the example of your own competitors. Next, move on to the next step of the recommendation.

Step - 2
Pay attention to the inflation forecast given by Russian government for the period under review (planned year). This indicator must be indicated when planning the entire State budget of any country. Next, move on to the next step of the recommendation.

Step - 3
Derive the adjustment factor to calculate the annual turnover of the plan year. In this case, if you want to maintain turnover at a certain level, the correction factor will have to be equal to one. But if you expect to increase your turnover, you need to understand what indicators make this possible. For example, this could be by implementing a more aggressive promotion, by updating the product range, or by increasing prices. Next, move on to the next step of the recommendation.

Step - 4
Draw up a plan for implementing the necessary activities after identifying the above factors with reference to the calculated annual plan. Next, move on to the next step of the recommendation.

Step - 5
Make an adjustment to the result you received for last year using the inflation coefficient of the plan year (multiply these values). Next, multiply the resulting amount by the correction factor, i.e.

OFF: annual turnover

by the amount of decrease (increment) in annual turnover. Next, move on to the next step of the recommendation.

Step - 6
Divide the annual turnover value by month to obtain the expected sales amount for each specific month of the company's operation. At the same time, try to take into account the specifics of your business activity - do not divide your income into equal parts. Next, move on to the next step of the recommendation.

Step - 7
Please also note that any activity of an organization, even in such a short period as one year, has its ups and downs. Track them using data from previous years and then plan monthly turnover (income) according to market changes.
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Key tags: Finance

Asset classification

The company's assets include value expression resources that provide manufacturing process enterprises. Assets include:

• Non-current assets (structures, buildings, machinery and equipment, transport, etc.),
• Revolving funds ( cash, debts of debtors, short-term investments, etc.).

Asset accounting is mandatory for most Russian enterprises. All assets are concentrated on the left side of the balance sheet and are divided according to their purpose:

• The first section of the balance sheet is represented by non-current assets (fixed assets and intangible assets), which are accounted for in accordance with their residual value less depreciation (line 1100 of the balance sheet);
• The second section of the balance sheet is represented by working capital, which is directly involved in the production process (line 1200 of the balance sheet).

Formula for the average annual value of assets on the balance sheet

To calculate the average amount of assets of an enterprise for a year, it is necessary to add up the amount of assets at the beginning and end of the year. This amount is then divided by 2 or multiplied by 0.5.

The formula for the average annual value of assets on the balance sheet uses financial reporting data.

IN general view The formula for the average annual value of assets on the balance sheet is as follows:

SA avg = (SAnp + SAkp) / 2

Here CA av is the average annual value of assets,

SAnp – asset value at the beginning of the period,

SACP is the value of assets at the end of the period (year).

The formula for the average annual value of assets on the balance sheet allows you to make calculations both for the assets of the enterprise as a whole, and separately for current and non-current assets.

Calculation features

The total assets of the enterprise are recorded on line 1600 of the balance sheet, which is compiled by accountants at the end of each year. When applying this formula, they use balance sheet indicators for several years, while the indicator on line 1600 is taken from the balance sheet for each year, summed up and subsequently divided by 2.

In the case of calculations for current assets, the formula for the average annual value of assets on the balance sheet will require information from line 1200 of the balance sheet. If calculations for non-current assets are required, then the accountant uses the indicators on line 1100 of the balance sheet.

Increasing the company's turnover | 5 main tools

The indicators must be used in a similar way by finding the average value of assets and comparing balance sheet data for the corresponding years.

The value of the average annual value of assets on the balance sheet

The average annual value of assets, which is calculated by analysts, is subsequently used when calculating coefficients that can characterize the state and efficiency of any enterprise:

• Return on assets
• Asset turnover ratio, etc.

The indicator is also used to find the reasons that led to changes in the operation of the enterprise and make decisions in the field of resource management.

Index average annual cost assets can provide a more accurate understanding of the size and value of assets, while it eliminates circumstances that could distort the real amount of assets.

If the asset turnover indicators of different enterprises for different years are compared, then it is necessary to check the uniformity of the assessment of the average annual amount of assets.

Examples of problem solving

Revenue(also found as turnover And volume of sales) - the total amount of claims (including unpaid ones) presented by an enterprise or entrepreneur to buyers as a result of the sale of manufactured products, services, and work for a certain period. Revenue is one of the types of income of a company. Gross profit is equal to the difference between revenue and expenses (costs) for the main activity (cost of goods or services sold). Capital gains resulting from an increase in the value of a business's assets for whatever reason are not considered revenue. For charitable organizations revenue includes the total value of cash gifts received.

Proceeds from the sale of products (works, services) include cash or other property in monetary terms received or to be received as a result of the sale of goods, finished products, works, services at prices and tariffs in accordance with contracts. Net revenue, in contrast to gross revenue, is reduced by the amount of taxes.

At the same time, the activity of the enterprise can be characterized in several areas:

• revenue from core activities coming from the sale of products (work performed, services provided);
• income from investment activities, expressed as financial result from the sale of non-current assets, sale of securities;
• revenue from financial activities.

Total revenue consists of revenue in these three areas. However, the main importance in it is given to revenue from the main activity, which determines the entire meaning of the enterprise’s existence.

Counting Features

There are two main methods for calculating revenue in accounting:

1. Cash method- revenue is considered to be a monetary payment received to the accounts or cash desk of an enterprise or goods received in payment of obligations (barter).
2. Accrual method- revenue is accrued when consumers have obligations to pay for the company’s products or services.

   How to calculate annual turnover

   Most often, accrual occurs at the time of shipment of products or provision of services to the consumer.

see also

Notes

1. G.I. Efimov, V.G. Krutsko, K.G. Nakhapetyan, V.A. Perekhodchenko. Fundamentals of management in modern conditions. - Moscow: Sputnik+, 2016. - P. 25. - 374 p. - ISBN 978-5-9973-3668-4.
2. Enterprise finance: tutorial/ N. E. Hare; under general ed. N. E. Zayats, T. I. Vasilevskoy. - 3rd ed., rev. - Minsk: Vysh. school., 2006. - 528 p.

How to calculate revolutions?

An important indicator of the activity of an enterprise or firm is its turnover. It is used to calculate the payback and daily rate of funds flow. Before you learn how to calculate revolutions, you need to determine the main indicators that affect them. Working capital is necessary to ensure the production process; as a result, their value is transferred to the finished product.

Any economic activity involves the use working capital.

What does a turnover of 5 million a day mean? (inside)

These include work in progress, productive reserves, finished and shipped products, accounts receivable, cash and money in the company’s current account. In the daily activities of an enterprise, they go through several stages of use.

Stages of movement of working capital

• Monetary. Funds are allocated for the purchase of raw materials, components, supplies, packaging, fuel and other components production activities.
• Production. As a result of the production process, previously created inventories are transformed into finished products or semi-finished products.
• Commodity. To obtain funds, finished products or semi-finished products are sold.

Management

It is necessary to determine the period for which the calculation will be carried out (for example, for a month, half a year). Most often, calculations are made per year.

You will need to collect data on all sales made during the selected period. To do this, the cost of goods sold (P) is summed up.

The value obtained as a result of calculating sales (P) must be divided by the amount of costs (C).

The obtained result allows you to analyze the success economic activity. The larger it is, the more efficiently assets are used and the higher the profitability of production. Increasing turnover will increase profits.

To assess how effectively working capital is used, their turnover is calculated. To do this, determine the time required for a complete turnover of funds from the acquisition of materials (cash stage) to the sale of products (commodity stage). By comparing planned and actual turnover, a conclusion is drawn about its slowdown or acceleration.

Rationing helps to use working capital rationally. It includes the development of reasonable standards and standards for the consumption of materials, raw materials and other means to ensure uninterrupted operation. The simplest standardization method is based on the use of data on working capital for the previous period, to which the necessary amendments are made.

Question: How to calculate turnover on a current account?
Answer: The most commonly used indicator is average monthly turnover. To calculate it, you need to divide the turnover for the period under review by the number of months in it. This indicator is usually of interest to the tax service and future creditors.

Question: What are net account turnover and why are they needed?
Answer: Net turnover is the difference between incoming (debit) receipts and funds that are not related to the main activities of the company (for example, charity). The indicator is used to analyze financial activities, comparing the results of reports and the actual flow of funds.

Question: What is the working capital standard?
Answer: He is minimum amount in monetary terms, without which production cannot be organized. To calculate it, use the stock norm in days for each element participating in the production process and the indicator for which this norm is established.

When starting their own business, most organizations expect to quickly receive income from sales of goods or services offered. It often happens that people involved in the management and distribution of funds do not take into account that in order to obtain free funds, a good turnover of goods and services is necessary in a short period.

What are companies?

For well-coordinated, income-generating work, a company requires financial investments. Payments for goods, services and assets used can be made both in cash and non-cash. The term “company’s cash turnover” means the totality of all methods of generating profit: payments for goods, settlements on loan obligations, as well as payments to employees and shareholders.

Occurs using available money.

It is carried out through the circulation of non-cash funds at the request of the recipient from the payer’s account to present a negotiable document.

Types of money turnover

A company's turnover is a set of processes necessary to increase turnover. To do this, various interaction methods can be used to pay for goods, services or materials received:

• Cash flow (used in the interaction of legal entities and individuals to pay bills for received goods and services for non-commodity obligations).
• Monetary turnover (applicable for the provision of services or goods on credit).
• Monetary and financial turnover (characteristic of material relations between the customer and the contractor).

Who can become a participant in money circulation?

The company’s turnover is the interaction between organizations participating in the turnover. These are the monetary turnover between legal entities, banking institutions, bank and legal or individuals, between individuals.

Most often, such interactions occur by bank transfer between the accounts of the customer and the contractor.

Thus, the company’s cash turnover is the totality of all receipts for production as well as deductions for consumed electricity, rental of premises, purchase of raw materials, and payments to shareholders.

Accounting keeps track of revenues and production costs for the entire period of operation of the company. Based on this, all material assets of the enterprise can be divided into active and passive assets, which play a significant role in the company’s turnover. This proves the fact that than younger company, the less it will have inactive assets.

What are enterprise assets?

They are formed as a result of the work of the company and are divided into:

• Active (cash in constant circulation, used to purchase raw materials, pay current payments).
• Inactive (do not carry a material load and cannot be useful if necessary to improve financial condition firms).

If active assets appear through production, sale, receiving payments on debts, prepayments from the customer, as well as receiving interest rates on long-term investments, then inactive assets are most often already on the company’s balance sheet at the beginning of its production activities.

Most of the inactive assets workers see every day are work buildings, equipment, any intellectual property that is not used in the production process, but that appears in the process legal activity(customer base, reputation, partnerships, etc.)

What affects cash flow?

A company's turnover is the totality of assets and material assets in circulation during a certain period. Each organization must monitor the need for working capital, as it plays a significant role in optimizing work and production costs.

The company is gaining momentum and increasing its margin ratio, that is, the amount of net revenue remaining after payment of all debt obligations and payments. But we cannot say that this is an accurate indicator of the company’s well-being.

The marginality ratio can only show the amount of net profit that an organization can spend on its needs in the current month. Accordingly, a company that increases this indicator with large turnover has short term turnover of goods (product-buyer-money), as well as the stock of raw materials, which are always in circulation.

Thanks to calculations, an experienced economist can accurately say whether the company's turnover is sufficient and whether the enterprise is liquid. Namely, how quickly the circular turnover of active funds and materials occurs, and whether the enterprise will be able to repay existing obligations to creditors and remain with net earnings.

Company turnover is not an unambiguous term, since it includes many subparagraphs. It can be carried out in one form or another cash settlements, considered for the company as a whole or for a specific area of ​​work. The period for which the data is analyzed also matters. Most often, economists are interested in the company’s annual turnover; a twelve-month distance is considered optimal for assessing the state of things in the business structure.

The types of annual turnover made in cash and non-cash form have a huge impact on modern accounting and reporting in general.

Total turnover in cash

This should include all cash payments, such as financial payments made by companies to their employees. Besides wages the form includes the transfer of scholarships, pensions, cash assistance, subsidies, income from financial systems. Cash payments are widely used for the purchase and sale of goods and services.

How is cash issued? The system provides for the transfer of funds from the organization's current account using checks, the amount and purpose are indicated on them. The total turnover can be calculated even for one day if the funds entering the organization’s cash system are transferred every day to the bank servicing the enterprise. Surely, you have come across situations where organizations leave cash in their cash registers.

Such actions are permitted, but only within the limit established by the bank. This limit is set depending on the turnover and specifics of the company’s work - the question should be answered: how much money must be left in the cash register to ensure uninterrupted functioning, service to clients and users?

Non-cash turnover of a business company

The company's turnover is not only cash, these days, it is rather predominantly non-cash payments. Such transfers go directly from one account to another and have a number of advantages over the cash payments through cash desks described above. Companies are not required to take additional measures to implement the regulatory function of supervisory authorities. government agencies, they reduce social costs.

It is known that improving the economic condition of a certain company means accelerating overall turnover, which is achieved mainly through non-cash form. How should non-cash payments be organized? It is important to carry them out in a timely manner, to ensure that the company’s non-cash turnover is under the constant control of responsible persons, and to prevent unauthorized movement of funds.

How to calculate the annual turnover of a company?

What does turnover mean, we figured it out, now it’s time to answer the question, how can you calculate financial turnover? this work falls on the enterprise's analyst-accountants, the amount of credit turnover and accounts is used. It allows you to effectively estimate the volume of cash flows in operations, investments and commercial activities.

As mentioned above, the financial turnover of a company is called the totality of cash flows, all monetary transactions, both cash and non-cash. However, it is recommended to carry out calculations separately for each model described above, even primary analysis will allow you to understand how effective non-cash or cash turnover turned out to be.

It is necessary to find out the turnover in order to assess the financial changes in the enterprise; it is compared with the indicators recorded at the beginning of the reporting period and analyzed. The movement of cash turnover allows you to see the difference between the amount of cash flow last year and the funds received during the year. Annual turnover is a global parameter; it is used to conduct strategic analytical research.

How to calculate turnover?

The analysis is carried out in two ways, direct and indirect.

• Direct method. Based on revenue, the economist focuses on how much money was poured into the company’s turnover, and also analyzes expenses (payment of supplier bills, loan repayments). Money movements are not taken into account.
• Indirect method. Allows you to focus specifically on operations that were associated with the movement of money. Profits are calculated as they are received.

The direct method is good for determining the final transactions and financial turnover of an enterprise for a certain period. Both operating procedures and investments and, in general, activities in the financial sector are included in the analysis. If long-term loans were taken out, they must be included in the calculation. However, repayment of debt on previously received loans also affects the overall picture of turnover when using the first method. Main information base when making calculations - the documents “Cash Flow Statement” and “Balance Sheet of the Enterprise”.

Five rules for calculating turnover

• Use competitor statistics. If the company has been operating for the first year and there is simply nothing to compare with, it is recommended to use competitors’ reports to determine the approximate level.
• Study inflation. A competent economist will always compare the calculation of money turnover with inflation indicators, with how much the currency has depreciated or strengthened in the market.
• Correction factor. When making calculations for the future, use the correction factor. Suppose it is planned to achieve growth in annual turnover, then the coefficient should be above zero. Along with it, it is important to identify ways that can be used to increase the level of turnover. Among the most common we will name these – saturated advertising campaign, updating the product range, increasing product prices.
• Take into account the ups and downs. Each trading year includes periods of peak activity and periods of decline. They can be both general, for example, a decline in activity during the holidays, and specialized - an increase in purchasing power on the eve of the start of the school year. The expected turnover of a company cannot be correctly calculated by simply spreading the profit over twelve months and without analyzing the realistically possible indicators for everyone.

To find out the value of annual revenue turnover, it is necessary to process a large amount of information and include non-cash and cash transactions for all transactions in the calculation. In other words, absolutely all transactions that affected the balance should come into view. The work of economists is carried out globally, but the results make it possible to assess the success of the company’s activities during the reporting period as objectively as possible.

>Counterparties cannot hide: how to find out the company’s revenue using the Taxpayer Identification Number (TIN) and on the Internet?

On the Internet In paper version

Why might this be necessary?

The purposes for which this information may be needed may vary depending on the category of persons requesting it.

So, let’s take a closer look at why information about a company’s revenue is needed:

How to check an organization’s earnings: step-by-step instructions

Currently, there are several ways to obtain information about a company's revenue indicator. You can obtain information directly from the company’s accounting department or find out the necessary data on the Internet. So, let's look at both methods in more detail.

In the Internet

In the age of technology, there are more and more opportunities to obtain information of interest regarding any counterparty in a short period of time.

Thus, today there are many information sites where information is published for wide use. financial statements various business entities (For example, spark-interfax.ru, zachestnyibiznes.ru, unirate24.ru, etc.). Using Internet resources, you can quickly view the revenue of any company.

So let's imagine general algorithm actions:

Important! On the website zachestnyibiznes.ru financial statements are presented for the last 5 years of the company’s activities. This allows us to identify a certain trend in changes in the company's revenue over time.

In paper version

This method is the most standard and includes the following steps:

1. We draw up and send a request for the provision of relevant documentation to the accounting department of the company of interest.
2. If the counterparty has no objections, then you will be sent the appropriate reporting form in paper form.

It is advisable to insist that the organization send you Form No. 2 with a mark from the tax office about the submission of documents, since there is always a risk that the counterparty may provide you with reports in an “embellished” form.

To summarize, it should be noted that currently almost any counterparty without special effort has the opportunity in a short period of time to find out the amount of revenue a specific organization received over a certain period of time.

At the same time, traditional paper version presentation of data, since any information can be obtained in a few minutes via the Internet.

Opening own enterprise, every entrepreneur opens a current account in a bank ─ how to calculate the average monthly turnover on a current account, what it is formed from, will become clear when you understand why a bank account is opened. It is needed to conduct financial transactions: withdrawing cash, receiving payments for services performed or goods sold.

What is average monthly turnover

Cash turnover of a small enterprise or individual entrepreneur is the main indicator that determines the return on investment over a certain time interval. How to calculate the average monthly turnover on a current account will become clear when the entrepreneur understands what indicators affect him. Any production process requires working capital, which is then included in the cost of production.

Entrepreneurial activity always involves the use of working capital, these are:

• production inventories of finished products;
• unfinished construction;
• quantity of products shipped;
• cash;
• financial condition of the current account.

Every day, working capital can go through the stages of their use, namely:

1. The financial stage, when money is allocated for the purchase of materials, fuels and lubricants, raw materials for products, and other business needs.
2. Stage of production activity, these previously procured raw materials are converted into products for trade.
3. The stage of commercial use is characterized by the receipt of financial resources from finished products.

The average monthly turnover of entrepreneurial activity assumes a balance ─ balance between the assets and liabilities of the entrepreneur. It is necessary to consider the turnover of incoming transactions (debit) and outgoing transactions (credit) for a selected period of time, namely:

• debit turnover ─ receipt of money from buyers, clients for services rendered to the entrepreneur’s bank account;
• credit turnover ─ entrepreneur’s expenses for needs own production: tax deductions, wages employees, payment to suppliers for raw materials.

A novice entrepreneur always understands all the definitions until he is faced with a bank statement, where tax deductions for some reason are indicated in debit, and investments are credited, and even a negative balance in the current account.

It is necessary to understand that the statement presented by the bank is its document, not yours. When a bank accepts financial assets from a client for use, he becomes a debtor to him and the receipt of funds in your current account only increases his debt (bank loan), ─ and debiting money from your account for other transactions reduces this debt (bank debit).

How debit and credit turnover is used

• the entrepreneur's debit is indicated on the left side of the current account;
• the right side of the account is reserved for credit turnover.

Depending on what kind of operation the entrepreneur carries out, this is accordingly reflected in one or the other side of his account. The balance (the difference between income and expense) in an account is also divided by type, this is:

1. active result;
2. passive result;
3. active-passive balance.

When an increase in the value in debit turnover occurs in the account, this indicates the property expansion of the enterprise or an increase in sales from trade; accordingly, a decrease in these parameters characterizes the entrepreneur’s credit.

You must understand that passive accounts are necessary only to show how the entrepreneur receives money and through what actions this happens.

The accounting department of a small business usually balances debits and credits once a year, or quarterly, when the balance for the reporting period is displayed. When the balance is zero ─ the debit column equals the credit column, the account is reset to zero.

How to calculate average monthly turnover

How to calculate the average monthly turnover on a current account, and for what purposes is this necessary, ─ and also when it is recommended to calculate the turnover of a small enterprise, this will become clear when an entrepreneur analyzes the stages of the flow of funds through his own business.

Experts say that when the speed of movement of financial resources through the stages of production is high, and working capital circulates quickly, then the profit of entrepreneurial activity grows quickly. Let's look at how to correctly calculate the average monthly turnover:

1. You need to calculate how your assets turn over, as well as how long one turn takes. To do this, you need to divide the profit received by the average monthly value of the entrepreneur’s asset. This is reflected in the formula: K (turnover) = average monthly profit/asset value. The result shows how much turnover the invested assets pay back; if the indicator increases with each calculation, this means an increase in the company’s sales activity.
2. The duration of one revolution can be determined by dividing the time interval of your choice by K (revolutions). A good indicator here would be a decrease in value, which indicates a shorter payback time.
3. You also need to calculate the coefficient that shows the fixedness of active funds; to do this, you need to divide the average parameter of the assets involved in the turnover by the profit received for the analyzed time interval. This ratio shows the entrepreneur how much working capital was needed to generate one ruble of profit.
4. It is also necessary to calculate the operating cycle, which is equal to the sum of: how long raw materials and supplies are in circulation, how long products are sold, how much unfinished products are left for the study period, and what debt is owed to the entrepreneur from contractors. By regularly carrying out this calculation, an entrepreneur can track the moment when an increase in the indicator will indicate the beginning of a decrease business activity own production. During the same period, the company’s funds will begin to turn over more slowly.
5. We determine the duration of financial cyclicality. To obtain this indicator, it is necessary to subtract the duration of the turnover of debts not returned to the entrepreneur from the calculated operating cycle. The lower this indicator, the more successfully the businessman runs his own business.

Can a loan be greater than a debit?

Every day the bank carries out an operation to determine the difference between the debit and credit of an entrepreneur on his current account, and based on the result they determine:

• when the difference has a positive result, ─ it says that the debit is greater than the credit;
• if the result is negative, then the credit is greater than the debit.

A typical banking agreement for servicing the current account of a person conducting entrepreneurial activity implies that:

• the client always has access to his own funds;
• the entrepreneur must use his own funds.

From the conditions described above, we can conclude that the bank does not intend to work with a negative result (balance). It turns out that when there is no money in the account, the bank simply may not fulfill any obligations to pay salaries and other orders of the entrepreneur, which gradually forms a chain of documents and instructions in the following sequence:

1. Requirements of judicial representatives to an entrepreneur for compensation of damage caused in the event of his activities to citizens of the Russian Federation, as well as collection of fees for obligations to minor children.
2. Documentation on the frequency of payment of wages, as well as all funds to dismissed employees of the enterprise, as well as people working under contracts.
3. Tax deductions.

To avoid such a situation, it is recommended that the entrepreneur enter into two types of agreements with the bank - a service agreement and a loan agreement. The bank sets a credit limit on the entrepreneur’s current account - an overdraft. This is when there is no money in the entrepreneur’s account, he can use it for a short time bank funds for carrying out mandatory calculations.

Average monthly calculation as an indicator of enterprise activity

Why does an entrepreneur need to know how to calculate the average monthly turnover on a current account ─ for the correct use of working capital. Standardization in production helps with this, which means the correct distribution of materials and raw materials for use, this will give stable operation to the enterprise. To do this, use all the data obtained during the average monthly turnover calculation.

The average monthly calculation as an indicator of the enterprise’s activity is important for the tax office and potential investors.

Experts recommend using the “net turnover” indicator to analyze the flow of funds, which is necessary for business activities, ─ when income transactions are separated from money received as charity.

To determine the net funds in circulation for a particular enterprise, indicators such as the scale of the activity are used, as well as the needs of the enterprise and the specifics of the type of activity.

Experts recommend maintaining a “net turnover” balance, since excess capital or its lack affects the well-being of the business. When there is more of it financial institutions can talk about the misuse of resources by an entrepreneur, his ineffective activities, and when there is a lack of net capital, this shows the businessman’s failure to meet his obligations.

The rapid development of market relations throughout the world has aroused great interest among the population in knowledge and understanding of the basic concepts of financing. Terms that were previously used only in the professional environment and specialized literature are now increasingly appearing in periodicals and fly off the tongue of Russians who are far from accounting.

Thrifty owners still resort to a simplified management option accounting, counting in one part of the sheet all income received, and in the other - expenses incurred. Thus, “debit” and “credit” are used quite often in everyday life. Determining these values ​​using simple mathematical calculations allows you to judge the effectiveness of the money spent and subsequently plan ways to reduce costs. This method is the most reliable on the path to financial well-being.

Grouping of accounting transactions

With the help of accounts in the accounting department, diverse business transactions are systematized, taking into account the sources of their formation. The double registration method displays changes in property ownership, sources of its formation and all types of economic activities on corresponding (that is, interconnected) accounts. Double entries are made in the same amounts in debit and credit. The final balance of active accounts is determined by adding the debit turnover to the initial balance and subtracting the credit turnover. There cannot be a credit balance (neither final nor initial) in an active account, since this means that the accounted object is less than zero. The ending balance on a passive account is determined similarly: opening balance plus the amount of credit turnover and minus the amount of debit. The resulting final balances for passive accounts are reflected as a credit, and for active accounts - as a debit. Active-passive accounts display both the property of the organization and the sources of its formation. The use of double entry, reflecting each business transaction, is due to the clear relationship of these transactions with changes in the financial condition of the enterprise, in which the interaction of two accounting objects occurs. It is this interaction that is called the economic content of a specific business transaction. Thus, displaying the debit and credit of each operation makes it possible to obtain detailed information about the dynamics of the development of the entire production as a whole and to determine priority directions for its development.

Scheme of debit and credit accounts

Depending on whether records are kept of the organization’s current or non-current property or its source, there are several types of accounts:

1. Active.
2. Passive.
3. Active-passive.

Each of these three types of accounts has its own structure. Let's look at them. If the account is active, then its opening and closing balances will be debit. Using information about what a debit is, you can derive the value of active accounts. They are intended to reflect transactions related to property and its movement. Receipt of funds is reflected as a debit turnover, and use as a credit turnover. Similarly, for passive accounts, both balances will be reflected as a loan. They are used to account for the sources of property. Credit turnovers for such accounts indicate an increase in capital, and debit turnovers indicate a decrease in capital. Active-passive accounts record balances and turnover on both sides.

What are debit and credit accounts? We have already determined this earlier. It remains to determine the meaning of debtors (debtors of the organization) and creditors (those to whom the enterprise is in debt).

In the accounting department of any enterprise, a system of accounts is used to record financial and business transactions. Each of them is designed to reflect a separate group of transactions on the debit or credit side. Familiarity with the structure and meaning of an accounting account makes it possible to clarify what a debit is and its entries for an accountant. We will also look at the concept of a loan and the transactions reflected on it.

Documentation of accounting entries

What are debits and credits in a transaction? Now we need to look at this concept. As already mentioned, posting in accounting means text. It indicates the debit account and the corresponding credit account or vice versa. Postings are divided into simple, affecting only two accounts, and complex, reflecting several accounts related to the transaction.

Accounting entries are prepared in the form of documentation in which records are kept. These can be journals - orders or memorial orders. Also, most often, for their visual reflection, they use balance sheets, which are of great importance for the preparation of financial statements.

The data in the statements is entered in the form of debit and credit entries. By the end of the month, the balances are withdrawn. In total for the entire reporting period, these data are transferred to the balance sheet. This accounting procedure allows us to understand what debits and credits are in the balance sheet. Accordingly, thanks to documented entries, the meaning of the active and passive sides of the concept under consideration is formed.

Accounting accounts are a whole way of being able to keep records. Without them, it would be impossible to reflect financial and business transactions by dividing them into groups. Thus, we looked at what debit in accounting is, credit and their meaning.

Every day a person makes purchases, spends, whatever financial activities, this includes traveling by transport, paying for gas stations on a car, ─ all these are the “basics” of accounting and we should understand what a debit is, what a credit is, the latter definition is more familiar to society.

In addition, in production, any company has its own accounting department, where they use the well-known terms debit and credit, which determine the financial position of the enterprise or company. You cannot do without these concepts when preparing a balance sheet, even to obtain bank card you need to understand these definitions. Let's consider these accounting terms in more detail.

What is debit and what is credit - history of terms

What is debit and what is credit is better understood, according to experts, when you “immerse” in more detail into the origin of these words. The expression “debit” is a borrowed word that was previously used in German speech, but, according to historians, its roots come from the Roman Empire (Debitum), which means debt. The shorter spelling Debet is adopted, which defines the expression "he owes", a more complete meaning (property abbreviation).

IN English language there is also a similar word that is defined by our translation as “debt.” The European country France uses the word debit to define expenses as something physical; it is used in specific definitions of the consumption of gas, oil, water, when the source provides resources for a specific time interval, but the physical value is written a little differently, with the letter “and” ─ debit, in contrast from the accounting definition of debit.

Most often, the terms debit and the term credit are used in accounting when accounting for funds and finances, namely:

1. Each accounting department has a “passive”, “active” and “mixed” account, these are:

• active accounts - an organization or company, an enterprise opens (places) independently;
• passive accounts - those that use funds raised for the organization’s activities;
• “debit”, in relation to “active” and “mixed” (active-passive) accounts, determining the receipt of additional funds;
• “credit” means the expense of active or active-passive accounts;
• “debit” in a passive account ─ expense of funds;
• “credit” in a passive account ─ the receipt of additional funds.

1. For a better understanding of what debit is, it should be noted that any accounting consists of two parts, these are:

• the property part of the enterprise (debit), its left side of accounting;
• the growth of the organization’s property and the rights to use it are shown on the left side (debit) of the accounting report for active and active-passive accounts;
• existence of obligations of the organization, what “cuts” of sources own financing activity is reflected in passive accounts, in its debit part.

1. The right side (credit) of accounting is defined by specialists as:

• reduction of the organization’s property assets in the operation of active or active-passive (mixed) accounts;
• An increase in the company’s finances (credit) is reflected in the passive account on the right side of the accounting department.

1. Experts determine the following patterns:

• “active” accounts show how the organization’s funds move from the credit part to the debit part of the accounting department;
• “passive” account reflects the movement of money of an enterprise or organization from the debit part to the credit part of the accounting department;
• When compiling a balance sheet, the accounting department shows debit balances as Assets and credit balances as Liabilities.

Experts emphasize that the definition of “debit” and the definition of “credit” are two opposing concepts. They also have different signs and meanings, namely:

• when the assets of an organization are considered, debit turnover is a positive value, it characterizes the growth of the enterprise’s finances, and credit turnover reflects their decrease;
• When considering the obligations of an organization or company, credit turnover shows financial growth.

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One of the indicators that characterizes the dynamics of a company’s sales is turnover. It is calculated in selling prices. Trade turnover analysis assesses the qualitative and quantitative indicators of work in the current period. The validity of calculations for future periods depends on the conclusions drawn. Let's take a closer look at trade turnover.

Inventory turnover

Everything that is in the warehouse is a current asset of the organization. These are frozen funds. To understand how long it will take to convert goods into cash, an inventory turnover analysis is carried out.

The presence of inventory balances on the one hand is an advantage. But even when they accumulate, sales decline, the organization still has to pay taxes on inventory. In such cases they talk about low turnover. In the same time high speed selling products is not always a big advantage. As turnover increases, there is a risk that the client will not find the right product and will turn to another seller. To find a middle ground, you need to be able to analyze and plan inventory turnover.

Terms

A product is something that is bought and sold. This category also includes services if their cost is paid by the buyer (packaging, delivery, payment for communication services, etc.).

Inventory is a list of goods available for sale. For organizations involved in retail and wholesale trade, Inventory refers to the items on shelves and those that are in stock, shipped, and stored.

The term “inventory” also includes products that are still in transit, in the warehouse, or in accounts receivable. In the latter case, ownership remains with the seller until the goods are paid for. Theoretically, he can ship it to his warehouse. When calculating turnover, only those products that are in the warehouse are taken into account.

Trade turnover is the volume of sales in monetary terms, calculated for a certain period. Next, the algorithm by which trade turnover is calculated and the calculation formula will be described.

Example 1

Average inventory:

Tz av = 278778 \ (6-1) = 55755.6 thousand rubles.

Osr" = (Begin balances + End balances)/2 = (45880+39110)/2 = 42495 thousand rubles.

Turnover and methods for calculating it

A company's liquidity indicators depend on the rate at which funds invested in inventories are converted into hard cash. To determine the liquidity of inventories, the turnover ratio is used. It is calculated by different parameters(cost, quantity), periods (month, year), for one product or an entire category.

There are several types of turnover:

• turnover of each product in any quantitative indicators (pieces, volume, weight, etc.);
• turnover of goods by value;
• turnover of the entire inventory in quantitative terms;
• turnover of total inventory at cost.

In practice, the following formulas are most often used to determine the efficiency of inventory use:

1) Classic formula for calculating trade turnover:

Т = (Inventory balance at the beginning of the period)/(Sales volume for the month)

2) Average turnover (calculation formula for the year, quarter, half year) :

Тз ср = (ТЗ1+…+T3n) / (n-1)

3) Turnover period:

ABOUT days = (Average turnover * Number of days in the period) / Sales volume for the period

This indicator calculates the number of days required to sell inventory.

4) Turnover in times:

About p = Number of days / About days = Sales volume for the period / Average turnover

This coefficient shows how many revolutions the product makes during the period under review.

The higher the turnover, the more efficient the organization’s activities, the less the need for capital, and the more stable the position of the enterprise.

5) Inventory level:

Uz = (Inventory at the end of the period * Number of days) / Turnover for the period

The inventory level characterizes the company's supply of goods on a certain date. It shows how many days of trading the organization will have enough inventory.

Peculiarities

The formula for calculating trade turnover and other indicators presented above is used subject to the following conditions:

• If the organization does not have inventories, then there is no point in calculating turnover.
• Retail turnover, the calculation formula for which will be presented below, may be determined incorrectly if it includes targeted deliveries of goods. For example, a company won a tender to supply materials to shopping mall. A large batch of plumbing fixtures was delivered for this order. These goods should not be taken into account when calculating turnover.
• The calculation takes into account live stock, that is, goods that arrived at the warehouse and were sold, and those for which balances are recorded, but there was no movement.
• Product turnover is calculated only at purchase prices.

Example 2

Conditions for calculations are presented in the table.

Let's determine the turnover period in days. The analyzed period is 180 days. During this time, 1,701 products were sold, and the average monthly balance was 328 items:

OBDN = (328*180)/1701 = 34.71 days

That is, from the moment it arrives at the warehouse until it is sold, an average of 35 days pass.

Let's calculate turnover in times:

OB times = 180 / 34.71 = 1701 / 328 = 5.19 times.

In six months, the stock of goods turns over on average 5 times.

Let's determine the inventory level:

Uz = (243*180)/1701 = 25.71.

The organization's existing reserves are sufficient for 26 days of work.

Purpose

Inventory turnover is analyzed to find items where the product-cash-product cycle rate is very low and make decisions accordingly. It makes no sense to analyze products of different categories in this way. For example, in a grocery store, a bottle of cognac may sell at a faster rate than a loaf of cognac. But this does not mean that bread should be excluded from the range of goods. There is simply no need to analyze these two categories in this way.

Compare the following products within the same category: bread - with other bakery products, and cognac - with elite alcoholic beverages. Only in this case can we draw conclusions about the intensity of turnover of a particular product.

Analysis of sales dynamics in comparison with previous periods will allow us to draw a conclusion about changes in demand. If during the analyzed period the turnover ratio has decreased, then the warehouse is overstocked. If the indicator grows and at a rapid pace, then we're talking about about working “from wheels”. In conditions stocks may be zero. In this case, inventory turnover can be calculated in hours.

If the warehouse has accumulated seasonal goods, for which there is low demand, it will be difficult to achieve turnover. Will have to purchase a wide range of rare goods, which will affect their liquidity. Therefore, all calculations will be incorrect.

It is also important to analyze the delivery terms. If the organization purchases at the expense of own funds, then the calculation of turnover will be indicative. If goods are purchased on credit, then low turnover is not critical for the company. The main thing is that the refund period does not exceed the calculated coefficient value.

Types of trade turnover

Just as prices are divided into retail and wholesale, trade turnover is divided into similar two types. In the first case, we are talking about the sale of goods for cash or at standard prices, and in the second - about sales by bank transfer or at wholesale prices.

Methods

In practice, the following methods of calculating trade turnover are used:

• Based on the consumption of goods by residents of one area.
• Based on the planned number of sales and average unit cost.
• According to the actual turnover of the organization (the most popular method).

Data for calculations are taken from accounting and statistical reporting.

Dynamics

The following formula for calculating trade turnover shows the change in the indicator at current prices:

D = (Act of turnover of the current year / Actual turnover of last year) * 100%.

The dynamics of trade turnover in comparable prices is determined by the following formula:

D sop = (Act of turnover in comparable prices / Actual turnover of last year) * 100%.

Example 3

Trade turnover in 2015 - 2.6 million rubles.
- Sales forecast for 2016 - 2.9 million rubles.
- Trade turnover in 2016 - 3 million rubles.

Let's determine sales: (3/2.8)*100 = 107%.
- Let’s calculate trade turnover at current prices: (3/2.6)*100 = 115%.

Price index

If prices have changed during the period under study, then you first need to calculate their index. The value of this indicator increases under the influence of inflationary processes on the country’s economy. The coefficient shows the change in the cost of a certain number of goods over a period. Formula for calculating the price index:

Its. = C new/ C old

This formula is often used by statistical agencies to analyze certain categories of goods. For example, the volume of goods sold in 2014 was 100 thousand rubles, and in 2016 - 115 thousand rubles. Let's calculate the price index:

Ic = 115/100 = 1.15, that is, prices increased by 15% over the year.

Only after these steps is used the formula for calculating trade turnover in comparable prices:

Fact = (Turnover at current prices / Last year’s turnover) * 100%.

Example 4

In 2015, the company’s turnover amounted to 20 million rubles, and in 2016 - 24 million rubles. During the reporting period, prices increased by 40%. It is necessary to calculate trade turnover using the formulas presented earlier.

Let us determine wholesale trade turnover at current prices. Calculation formula:

Тт = 24/20 * 100 = 120% - for this year trade turnover increased by 20%.

Let's calculate the price index: 140%/100% = 1.4.

Let's determine trade turnover in comparable prices: 24/1.4 = 17 million rubles.

Formula for calculating trade turnover over time: 17/20*100 = 85%.

Calculation of dynamics showed that the growth occurred only due to an increase in prices. If they had not changed, trade turnover would have decreased by 17 million rubles. (by 15%). That is, there is an increase in prices, and not in the quantity of goods sold.

Example 5

The initial data for completing the task are presented in the table below.

Now you need to determine trade turnover for the current year using prices from the previous period.

First, let's determine the percentage of sales plan fulfillment: 5480/5300*100 = 103.4%.

Now we need to determine the dynamics of trade turnover as a percentage compared to 2015: 5480/4650*100 = 120%.

As a result of exceeding the sales plan in 2016, the company sold products worth 180 thousand rubles. more. Over the year, sales volume increased by 920 thousand rubles.

A detailed calculation of retail turnover by quarter allows us to determine the uniformity of sales and identify the degree of demand satisfaction. Additionally, it is also worth conducting an analysis of sales by month to identify signs of declining demand.

Formula for calculating turnover in retail trade

Analysis of price changes by product groups provides for quantitative and cost assessment of individual goods, determining the dynamics of their shifts. The results of the study are used to study the correspondence of supply to demand and influence the formation of orders.

The analysis of trade turnover is carried out quarterly and based on the results of the audit, it is possible to establish the reasons why the trade turnover has changed. The formula for calculating the balance is given below:

Zn + Nt + Pr = R + V + B + U + Zk, where
Zn(k) - inventories at the beginning (end) of the planning period;
Нт - commodity allowance;
Pr - arrival of goods;
P - sales of goods by individual groups;
B - disposal of goods;
B - natural decline;
U - markdown.

You can determine the degree of influence of balance sheet indicators by calculating the difference between planned and actual indicators, or using the chain substitution method. At the next stage, retail turnover, the calculation formula for which was presented above, is analyzed for changes as a result of improved labor productivity, an increase in the number of employees and the efficiency of use of fixed assets. The analysis ends with determining the prospects for sales growth and changes in the structure of goods.

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