Below you will find downloadable tools to assist you in your business.
The Difference Between Gross Profit & Markup
Gross profit is the accounting basis this industry is based on not mark up and you should learn the difference.
Remember your profit and loss is based on Gross profit NOT mark up
40% Gross Profit on a cost of $1.80 is $3.00
40% mark up on $1.80 is $2.52
To calculate Gross profit you take the cost for example $1.80 and if you want to make 40% Gross Profit you divide the cost by .6
$1.80 / .6 = $3.00
If you want to make 30% then you divide by .7
The Gross Profit is always the difference to make up 1
How To Balance A Cash Register
In many businesses one of the most neglected financial items that is neglected is , balancing the cash register /till.
Stores should start the day with a float of money , designed so that you can give change to the customers.
During the day you may have to add in money during the day to the till when you are unable to give the correct change and customers will pay you for goods.
Coming out of the till will be payments to suppliers / eftpos cash outs and of course change.
Even though you can ring up all the above items people can do make mistakes and that is why we balance the cash register.
So to balance your cash register you record your float and the amount of money you have added to the float , this will give you subtotal one.
You then:
Count the money in your till
Get an EFTPOS total
Add on any expenses you paid from the till
This will give you subtotal two.
Your sales for the day will then be subtotal two minus subtotal one
Compare this to your till read for the day and it will tell you whether you are short or over.
Remember your sales are subtotal two minus subtotal one not what is on the till read.
It is now up to you to find why the difference between the two figures.