How to calculate profit in pos business

How to calculate profit in pos business.

Calculating the profit made from POS business on a daily, weekly, and monthly basis is very easy, Most pos agents don't know how to calculate the profit and how much the company charges them. the most common mistake most make is writing down the whole charges without deducting the service charge as the profit which is very wrong. Below is a breakdown of how to calculate profit and daily transaction charges on POS business.

How to Calculate the Charges and Profit in POS Business

For both new and existing agents, the first thing to know is that the pos you are making use of charges you on every transaction carried out with the machine. The charges for both withdrawal and deposit are different and for withdrawal, the charges are based on a percentage which is mostly 0.5% and cap at 100 Naira for 20k and above while the deposit is mostly 20 Naira for any amount.

Let's say a customer is to make a 5000 Naira withdrawal and your charge is 100 naira, it means you have to remove 0.5% of 5000 minus 100 Naira which is 75 naira as your profit, and for the deposit, if a customer is to make 20,000 naira deposit and you charge 200 Naira, the service charge is 20 Naira while your profit is 180.

So for better understanding, you have to draft a table that will contain different columns that include S/N, Amont, Charges, Deposit, Withdrawal, and Total

Financial Transactions Table for pos Business