2 min read
Definition
Turnover is the total value of a business's sales over a period — its revenue, or top line — before any costs are deducted. It is not the same as profit, which is what remains after costs.
In plain terms
It is how much money came in from selling, full stop. A business can have high turnover and low or no profit if its costs are just as high.
Why it matters for your company
Turnover matters for VAT registration, thresholds and headline size, but profit is what actually funds the business. Confusing the two — chasing turnover while ignoring margin — is a classic path to a busy, unprofitable company.
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