The terms company gain and loss are two very important terms in a business. Don’t let a businessman misunderstand the term.
This is because the two terms tend to be similar to the terms profit and loss, even though they are different. So, how about the difference? Check out the following.
Company Gain and Loss
Companies in the field of trade and services, of course, will still meet with gains and losses. In general, the gain has a similar meaning to profit, but it’s still not the same. If the profit is the profit derived from the difference between the buying and selling prices in general, then the gain is not the case.
Gain is profit, terms of gain are defined as an increase that occurs in the capital (net assets) which does not come from general income but from transactions outside of business operations. For example, the profits from the sale of securities obtained by a company.
On the other hand, there is also a loss which is a decrease in net asset capital due to transactions outside of business operations. Loss is a loss earned by the company. For example, there is a loss resulting from the sale of securities.
Factors Affecting Gain and Loss in the Company
As a businessman, of course, you have to know the factors that can create profits for your company. On the other hand, you should also anticipate things that cause losses. To better understand what are the factors that affect a company’s gain and loss, it would be nice to see the following.
1. Selling Price
The selling price set by the company will certainly affect the profits or profits and even losses of a company. The right selling price will create a balance for the company, it may even provide better profits. Vice versa.
On the other hand, if the company has opened the sale of securities, the selling price will greatly affect the purchase of securities. Prices that are too high will certainly make buyers reluctant to buy them. This certainly occurs in the purchase of company products and company securities.
2. Volume of Goods or Services
The more volume of goods produced and entered the market, the more the company will become known to the public. If that’s the case, of course, the company’s products will be liked by the public, this also really depends on the marketing that is done. The more intense, of course, the result is also the maximum.
Not only related to consumer products. If the product is already crowded in the market, this will also make it easier for companies to sell or issue securities. The more sales and balance, the higher the gain.
Solutions to Handle Company Gain and Loss
No one company or business person wants to experience losses. Every businessman certainly wants to continue to make a profit, because it is from these profits that a businessman earns income. However, if it has happened, then a businessman must be prepared for this situation, keep getting up, and face it calmly.
1. Do a Financial Evaluation
Financial evaluation is very important in a company. The absence of regular financial evaluations will certainly create an imbalance within the company. Moreover, finance is a very important part of the running of the company. In terms of evaluation, it can be carried out lightly or through an audit process.
2. Improve Business Systems
Improper business systems will certainly affect the running of the company. It could be that the company will suffer losses due to poor management. This business management can be related to many things, from employees to the smallest lines of the company.
3. Stay Calm and Optimistic
An entrepreneur must have a calm and optimistic attitude. These two traits will make him able to manage the company well. In a gain-or-loss situation, entrepreneurs must continue to be in tune with the company’s vision and mission.
Thus, things need to be understood in running a company. A solution so that the business being run continues to benefit is to run it according to the vision and mission. Remain optimistic in the face of company gains and losses.