What is the difference between Turnover and Profit?

The turnover of a business is the amount of revenue it has earned in a particular accounting period.

The profit of a business is the amount remaining after deducting from the turnover the expenses incurred in earning it.

A difference between turnover and profit is that a rising turnover may be a sign that the business is growing but profit is the indicator of the “health” of the business. You are in business to make a profit, otherwise the business will eventually fail. Increased turnover does not guarantee rising profits, particularly if the business is unable to control costs.