Gross Revenue vs. Real Net Profit

Many shopkeepers see ₹50,000 in counter sales and assume it was a fantastic week. But after paying wholesale supplier bills, rent, shop boy wages, and electricity, they wonder where the cash went.

True profit calculation requires a simple daily formula:

Net Profit = Total Sales - (Wholesale Purchases + Direct Operating Expenses + Staff Wages)

Categorizing Daily Shop Outflows

  1. Inventory Purchases: Stock purchased from wholesale distributors or Mandi vendors.
  2. Operating Overheads: Tea, packaging bags, transport, cleaning supplies, and utility bills.
  3. Staff Attendance & Salaries: Tracking daily attendance and advances paid to shop assistants.

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