Distinguish sales, receipts, gross profit and cash flow

Sales are not the same as today’s receipts, and gross profit is not the cash drawer balance.

Steps

1. For sales performance, use the intended sales-date and net-sales basis and check returns, discounts and tax treatment.
2. For money received, inspect payment records and methods. Collecting an old debt increases cash today without creating a new goods sale.
3. For gross profit, verify cost of sales and trace cost anomalies to purchasing, units or negative stock.
4. For cash, separate opening float, net cash sales, refunds, withdrawals and other cash movements.
5. Avoid double counting POS sales and their back-office stock copies, and align dates, warehouses and sources before comparing reports.