Why Revenue Is Not Profit
Revenue is the money the business receives from sales. Profit is what remains after expenses are deducted.
High sales can hide high costs
A business may sell a lot but still make little profit if stock, rent, wages or other expenses are too high.
Expenses must be recorded
If expenses are missing from records, profit will look better than reality.
Cash balance can mislead
Having money in M-PESA or cash does not mean all of it is profit. Some may be needed for bills or suppliers.
Review profit, not just sales
Owners should track sales and expenses together.
Bizwazi helps owners see revenue, expenses and profit more clearly.
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Track sales, M-PESA, expenses, stock and daily profit in one place
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