To analyze store performance, bring sales, the cost of goods sold, operating expenses, and stock into one working table. Check the entered data every day. Each month, compare results and decide which prices, expenses, or products need a closer look.
The owner chooses the periods and makes decisions. The responsible employee prepares the source figures and documents. Record the outcome of the analysis: what to check, who will do it, which action was chosen, and when to assess its result.
Prepare data on the same basis
Choose two periods of equal length. Keep the scope of stores, sales channels, and product groups the same. Check the number and composition of working days. Account for seasonal fluctuations when assessing average sales.
Ask the person responsible for accounting to prepare:
- sales revenue, with an explanation of which deductions have already been accounted for;
- the number of completed, paid receipts for the selected period;
- the cost of the goods actually sold;
- discount and return amounts, as well as the cost associated with returns;
- operating expenses as a separate list;
- stock as of a specified date: item quantities and their valuation on the stated basis.
Record the rules for including receipts and assigning returns to a period. Apply them consistently to both sets of data. If discounts are already included in revenue, do not deduct them again. Check returns together with the corresponding cost of goods.
Ask the person responsible for accounting to state whether taxes are included in the source revenue and cost figures. Use the same approach for both periods and keep this explanation beside the table.
Calculate the metrics and separate expenses
Net sales are revenue after accounting for discounts, customer returns, and other deductions. Use this amount to calculate gross profit and margin.
| Metric | Calculation or input data | What to check |
|---|---|---|
| Number of receipts | Receipts under the defined inclusion rules | The period and scope match the revenue |
| Average transaction value | Revenue from the selected set of purchases ÷ number of corresponding receipts | The numerator and denominator cover the same purchases |
| Cost of goods sold | Cost of goods whose sales are included in the calculation | The sales and returns included are consistent |
| Gross profit | Net sales − cost of goods sold | Discounts and returns are not counted twice |
| Gross margin | Gross profit ÷ net sales × 100% | Do not calculate a percentage with this formula when net sales are zero |
| Operating expenses | A separate list of expenses for the period | The list contains the same items in both periods |
| Stock | Quantity and value as of the snapshot date | The date, scope, and valuation basis are stated |
The cost of goods sold is different from operating expenses. Consider rent, utilities, and marketing separately. In your working table, record the full list of included expenses so you compare the same items next month.
Illustrative example: average transaction value rose, gross profit fell
Suppose a store compares two periods of equal length and scope. Each had 100 completed, paid purchases, each recorded on one receipt. There were no returns or cancellations. Discounts were already included in revenue. No additional taxes are added to this illustrative calculation; the amounts use the same basis.
| Metric | First period | Second period |
|---|---|---|
| Net sales | 30,000 UAH | 32,000 UAH |
| Number of receipts | 100 | 100 |
| Average transaction value | 300 UAH | 320 UAH |
| Cost of goods sold | 18,000 UAH | 20,800 UAH |
| Gross profit | 12,000 UAH | 11,200 UAH |
| Gross margin | 40% | 35% |
| Selected operating expenses | 6,000 UAH | 6,000 UAH |
| Balance after these expenses | 6,000 UAH | 5,200 UAH |
In the second period, the average transaction value was 20 UAH higher, while gross profit was 800 UAH lower. The balance after the selected expenses is shown before other unaccounted expenses. Do not call it net accounting profit.
With this result, check actual selling prices, cost of goods, discounts, and the mix of products sold. Identify the items for which these figures changed. Determine the cause by reviewing sales details and documents, not from the difference between totals alone.
Check stock before deciding what to purchase
Set a snapshot date and make a list of items to check. Count the physical stock and compare it with the accounting records. For each discrepancy, record the item, the physical and recorded quantities, and who is responsible for checking the documents.
State the valuation basis in the stock value table. Keep the same approach for future comparisons. Make purchasing decisions after checking the quantities and sales of the selected items.
Analyzing receipts and the cost of stock in Torgsoft
To review purchases, use the «Аналіз кількості чеків за сумами» (Analysis of the number of receipts by amount) mode. The table shows the receipt amount, the number of corresponding receipts for the selected period, and the average receipt amount within a specified amount range. Use this data to check purchases in your table. Calculate gross profit from separately prepared net sales and cost figures.
To value ending stock, use the «Обігову відомість за собівартістю» (Cost-based inventory turnover statement): the report shows the cost of stock at the end of the period. In combined mode, the program first takes the cost from the document, and if it is missing, from the warehouse state on the document date. Record the cost source used beside the result so you can repeat the comparison on the same basis.
Before generating monthly reports, calculate cost as recommended in the Torgsoft «Період» (Period) help article. For reports covering a closed period, recalculation is not needed. In a retail network, cost can be calculated only on the central computer that collects all incoming warehouse documents. Transfer the results to your working table and compare them with operating expenses and the physical stock check.
Record the action and conditions for rechecking
- Every day, ask the responsible employee to check that sales, returns, and discounts are complete.
- Each month, compare the metrics using the agreed rules.
- For any variance, record the next check and who will carry it out.
- After checking, choose a limited action, such as reviewing a discount for one product group.
- Set a date for measuring again and a threshold for reviewing the decision. For a pricing test, set an early stop limit in case revenue drops sharply.
Keep these columns in your working table: date, metric, input data, formula, actual result, next check, and responsible person. In the next analysis, compare the result with the recorded threshold and decide whether to continue the chosen action.
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