EazyStock shows several money figures, and they answer different questions. Your sales are not automatically the same as the money currently available in your business.
The words
- Sales / revenue - the value of what you sold, whether or not the customer has paid yet.
- Cost of goods - what the goods you sold cost you.
- Profit - what you earned after the cost of goods, expenses and salaries.
- Expenses - money your business spends to operate (rent, transport, data...).
- Business balance - the cash and bank money you really hold right now, in Business Funds.
- Stock value - what the goods on your shelves are worth.
- Customer debt - money customers owe you for goods already handed over.
Why they differ
- You sold 100,000 but customers only paid 60,000: your sales are 100,000, your balance only rose by 60,000, and 40,000 is customer debt.
- You bought goods for 200,000 on credit: your balance did not fall yet, and the cost only reaches your profit when you sell them.
- The owner puts 500,000 into the business: your balance rises, but your profit does not.
- The owner takes out 50,000 for personal use: your balance falls, but your profit does not - it is not a business expense.
- Goods are damaged: your profit takes a stock loss, but no cash moved.
A positive balance with a loss, or a profit with a low balance, can both be perfectly normal. EazyStock never adjusts one figure to make it match another.