The difference between turnover and operating income:
1. Turnover refers to the total operating income obtained by an enterprise in a certain period of time. It is an important part of enterprise income, and it is also an important reference index to evaluate enterprise management level and measure enterprise value.
2. Turnover can generally be counted according to three dimensions: operating income, operating cost and operating profit. Operating income refers to the money collected by enterprises in selling products and providing services in a certain period, reflecting the quantity and income of products issued by enterprises in a certain period;
3. Operating costs refer to the expenses paid by enterprises for selling products or providing services in a certain period of time. Operating costs account for a large proportion of the total business, reflecting the various costs paid by enterprises in operating activities in a certain period of time;
4. Operating profit is the net income after deducting operating costs from operating income in a certain period of time, reflecting the actual profit obtained by enterprises in realizing their business activities in a certain period of time.
In summary, the turnover is greater than the operating income. Turnover is all income including operating income and operating cost, while operating income reflects the operating results of enterprises without considering cost factors. In addition, operating income not only refers to sales income, but also includes income from providing services and financing income. We can also increase the turnover by expanding marketing channels and tapping new customer groups, thus increasing the company's economic benefits. At the same time, enterprises can also choose the corresponding technological innovation mode according to the industry development and market trends, increase sales and enhance the company's economic benefits.
The basic conditions for confirming operating income are:
1, income-related transactions have occurred or the ownership of goods has been transferred;
2. The process of obtaining income has actually been completed, and the price has been obtained or the legal right to collect the price in the future has been obtained.
Legal basis:
Article 9 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC)
The calculation of taxable income of an enterprise is based on accrual basis, which belongs to the income and expenses of the current period, regardless of whether the payment is received or not. The income and expenses that do not belong to this period, even if the money has been received and paid in this period, are not regarded as the income and expenses of this period. Except as otherwise provided by this Ordinance and the competent departments of finance and taxation of the State Council.
Article 10
The term "loss" as mentioned in Article 5 of the Enterprise Income Tax Law refers to the total income of an enterprise in each tax year, and the balance after deducting non-taxable income, tax-free income and various deductions in accordance with the provisions of the Enterprise Income Tax Law and these Regulations.