What is a clean turnover?

Pure turnover is a general term used in business and accounting to refer to a net value of combined income over a given period of time, or to "overturning" of an asset or other valuable items within the same time frame. The technical definition of net turnover in terms of accounting is a net income before value added tax (VAT) and after business discounts. Similar definitions are regulated by the use of this variable in modern business and accounting.

In the most general sense, net turnover in accounting is a net income for the company. This number is often regularly referred to as book guidance systems. A slightly different definition that still evaluates income is the amount of income that the company has made on one assets or class of services. For example, a net asset turnover will be the number of times, during the year or in another time frame that the asset has provided its own value or "rotation". This leads to turnover data expressed as a percentage of $ 3,000, for example, an asset worth $ 3,000Ested that "handed over" 1.5 times.

Further definitions for turnover relate to services or stocks for the company. Accountants can also assess how many times during a given period the inventory has "turned". Although it still applies to value, it only addresses the value in relation to the volume of stocks, it does not judge the value strictly on the basis of the total income. For example, if the inventory of ten widgets were replaced 1.5 times during the year, the annual net turnover would again be 1.5, after any relevant alleviating factors.

The word "network" in net turnover distinguishes this value from "gross" turnover, which would be a turnover number before using tax or discounts. These two different terms provide accounting ways to show "actual values" in a way that the leaders can understand and use otherwise. Pure turnover often provides a "real" value because it takes into account multiple factors. Accountants can also clearly mean the difference between gross turnover and orby a hundred turn to show how changing factors affect value.

turn, it can also apply to the loss and profit of employees. The net value for turnover can also apply, although usually the turnover of employees does not include gross or net valuation. In general, employee turnover also helps businesses to assess costs.