Annual turnover example

Your annual turnover calculation is an essential part of your statutory accounts because it tells you what your total sales have been over the past 12 months.

The annual turnover of your company is an important measurement of its performance.

What Does Annual Turnover Mean?

Annual turnover is the total value of everything you sell over the 12 months of your company’s financial year.

Other ways of referring to turnover are:

Turnover is not the same thing as profit.

Profit is a measure of your company’s earnings after you’ve deducted expenses.

Annual turnover, on the other hand, is your total business income. It is a net sales figure.

Annual Turnover In Accounting

Turnover can also refer to business activities that don’t always generate sales, measuring movements to do with:

• Staff
• Accounts receivable
• Portfolio

But these aren’t the measurements that your annual accounting focuses on when it looks at turnover.

Annual turnover in accounting is a total sales figure.

How to Work Out the Average Turnover of a

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