Financial Flow: Revenue, Expenses & Net Profit
Understanding how your farm's financial health is calculated.
1. Income Transactions
All money coming into the farm.
Examples:
- Milk Sales
- Cow Sales
- Calf Sales
- Cow Dung Sales
- Government Subsidies
- Other Income
Total Revenue
Sum of all income.
e.g., ₹1,500,000
2. Expense Transactions
All money spent by the farm.
Examples:
- Cattle Feed
- Veterinary / Medicine
- Staff Salary
- Farm Maintenance
- Equipment Purchases
- Loan Repayments
Total Expenses
Sum of all expenses.
e.g., ₹1,000,000
Total Revenue
Total Expenses
Net Profit (or Loss)
The final financial outcome.
e.g., ₹500,000
(Total Revenue - Total Expenses)
Summary
This flow illustrates the basic accounting principle: Net Profit is what remains after all expenses are deducted from all revenues. Tracking these figures accurately is crucial for understanding your farm's financial performance. The Finances page in DairyFlow helps you monitor these transactions.