Income and expenses

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Even people who are completely far from business and everything connected with it are familiar with these concepts. The income of an enterprise means all the finances that come into its accounts as a result of selling products or services (i.e., carrying out business activities). Expense items mean production costs, expenses, rent and utility payments, employee salaries, tax deductions, and so on.

Financial performance indicators of the enterprise

Source: freepik.com

The evaluation algorithm looks cameroon email list as simple as possible. If the sum of all incomes is greater than the sum of all company expenses, then the business is developing and the concept of its construction is built competently. If the situation is the opposite, then it is necessary to find out the reasons for this and develop measures to stabilize the activity.

Production volumes and product quality

The more products or services a company sells, the higher its turnover, and therefore its profit will also grow. To better assess the current situation, it is necessary to comprehensively monitor all relative parameters that show how effectively the company operates. The same applies to product quality. When there is stagnation, there is no positive dynamics in the company's performance indicators, and this means that it is necessary to start looking for factors that hinder business development.

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Product profitability

If they say that a business is profitable, it means that all the main processes are consistent and continuous, the planned schedule is observed, the enterprise has more income than expenses. With the help of such a general assessment, one can judge the productivity of the company as a whole. The calculation is based on a simple concept - the less money is required to invest to get the desired result, the better.