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