15/12/2020 by Beki Wallace AATQB MIAB 0 Comments
Often referring to the company revenue which is income from services or goods before deductions.
Turnover is the total sales over a period of time.
In cash accounting turnover is all sales that have been paid.
In accrual accounting turnover is all sales that have been invoiced
regardless over whether they have been paid.
Found on the top line on the income statement.
For VAT registered businesses, turnover is income less VAT.
Turnover is revenue or gross income.
It’s important to know that turnover should include full costs.
Turnover should include commissions, fees or shipping costs for example.
Any expenses that would be directly invoiced to the customer.
If the turnover is not accurately calculated it may not be clear that VAT registration is required,
taxes might not be paid, resulting in fines and investigations.
Getting it right is essential, business owners should not be afraid to ask for help.