The billing is the sum of all sales, whether of products or services, which a company performs in a given period.
This process demonstrates the real production capacity of the company and its market share, that is, in the company's cash flow, billing constitutes a large part of the cash inflows.
It also serves as a calculation basis for the payment of taxes and the type of tax regime that the company must pay to the government, also taking into account the branch of business activity.
It is necessary that the invoicing of a company is done monthly, because through this mechanism, the entrepreneur can control the situation due to the data recorded on the invoice, such as which type of merchandise is most sold, how many units and values marketed.
Invoicing can also serve as a document of fiscal origin, as long as the corresponding taxes are listed in it, such as ICMS, for example.
Learn more about ICMS.
It can be divided in two ways:
- gross billing, which is the amount the company received for sales of products or services in a given period;
- net billing, which is the value of what was received for sales, with due discounts from the taxes that apply to the sale.
There is a difference between the company's revenue and gross revenue, as revenue corresponds to the amount the business has already sold and received. Gross revenue increases whenever there is a sale, regardless of whether the payment was total or not.
A document originating from the billing is the duplicates, which are used to justify the charge that the company makes to a debtor customer. They are used as a legal instrument to carry out a charge relating to invoicing.
Learn more about Duplicates.
The term may be replaced by synonyms such as invoicing, revenue, income, earnings, income, product, dividend, income.
How to calculate a company's turnover
To perform the billing calculation, it is also necessary to take into account the two forms in which it is presented.
So for the calculation of gross sales, it is enough to multiply the quantity of products sold by the value that it was sold.
For example, in the last month, a company sells a total of one thousand tables for the value of one hundred reais a unit. Then the calculation of gross sales will be one hundred thousand reais, because:
Gross sales = R$100 X 1000 = R$100,000
to do the calculation of net sales, you must take into account the taxes payable for the sale.
Taking as an example the company that last month sold 1,000 tables at one hundred reais per unit, in the case of net sales, it is necessary to deduct from the amount that is received the ICMS, which will be 18% of gross sales, or be,
18% of BRL 100,000 = BRL 18,000
So, the calculation of net sales will look like this:
Net Revenue = R$100,000 - R$18,000 = R$82,000
See also the meaning of Tax.
Billing x Profit
In a company, profit and revenue are two terms that sometimes generate confusion among entrepreneurs, especially for those who are starting a business. Despite their similarity, they have different meanings.
While invoicing deals with all the money that enters the company from the sale of its products or services, including the amounts of taxes to be paid, the profit is equal to the invoiced amount minus the sum of the fixed and variable costs for maintenance of the company.