Analysis of trade results: the main indicators of the store

One of the main tasks of accounting systems is to analyze trade results.

Analytics helps the entrepreneur improve the efficiency of the store and see the prospects for business development.

Why is trade analysis needed?

Timely analysis:

• allows you to compare data from different periods – months or years,
• provides information for making management decisions,
• identifies strengths and weaknesses of the business,
• prevents cash gaps,
• helps plan the development path and prepare for changes.

Where to see the profit?

Use the Analysis → Period mode in Torgsoft to evaluate the business, manage monthly data, and analyze the overall performance of the retail network or point of sale.

Main parameters of trade analysis

In Analysis → Period, information about performance is summarized and important components of final profit and current business status are detailed:

Gross income — the amount from product sales. This is the financial basis for evaluating the company's performance, analyzing, and forecasting general trends in sales growth or decline.

Product profit — profit from goods, considering returns. Sales profit is calculated as the difference between the selling price and the cost price of the product. Product profit accounts for product returns, write-offs, shortages from inventories, and bonus payments.

Expenses — all financial operations related to financial analysis items marked as «Expenses». The list of expense items can be expanded.

Profit — the result of the store and network's main activity. Product profit is reduced by the amount of expenses and increased by the balance amount of gift certificates, as sold but not redeemed certificates are pure profit for the store.

For details, separate blocks provide a breakdown of the amount of sold and used gift certificates, and accrued and paid salaries.

Additional business analysis metrics

Additionally, indicators of product movement during the period are analyzed in both quantitative and monetary terms:

• amount and quantity of goods in inventories,
• amount and quantity of sales,
• cost of sales,
• amount of sales discounts,
• markup on sales,
• amount, quantity, and cost of returned goods.

This data shows the overall state of product movement and its impact on revenue.

Inventory analysis

For inventory assessment, Torgsoft provides a breakdown of the stock status at the end of the period:

• quantity of goods,
• amount of goods at list prices,
• cost of goods in stock,
• expected profit.

Inventory assessment shows the overall financial picture invested in goods and forecasts the profit from the sale of inventory.

Protection of trade results information

Close past periods for security and protection of data from accidental or intentional editing. Closing the period blocks changes in the selected month and prohibits changes or deletion of warehouse and financial documents, product movements, invoices, and payment statements.
If you do not need previous periods, you can delete them using the additional «Delete closed period statistics» option.

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Trade analysis: important management accounting indicators

• Analysis of global key indicators.
• Analysis of stale goods – a means of deciding on revaluation.
• Settlement for goods under realization.
• Review and analysis of goods movement by supply batches.
• Sales analysis by suppliers, manufacturers, and types of goods.
• Displaying the average receipt.

• How to find out which products sell best and which products remain deadweight in the warehouse.
• How do promotions and discounts affect sales?
• Which supplier and manufacturer generate the most profit?
• Trade results: how much was earned for the reporting period, the current state of the warehouse, how much was spent on returns, potential profit.