[Year]

Sales
Report
Your business slogan here.

Address
City
Postal Code

Confidential
 Phone 555.555.5555
Email info@yourbusiness.com
www.yourbusiness.com

[YOUR COMPANY NAME] // [DATE] SALES REPORT 2

Confidential
Statement of Confidentiality
and Non-Disclosure

This document contains proprietary and confidential information. All

data submitted to [RECEIVING PARTY] is provided in reliance upon its
consent not to use or disclose any information contained herein except
in the context of its business dealings with [YOUR COMPANY NAME].
The recipient of this document agrees to inform its present and future
employees and partners who view or have access to the document's
content of its confidential nature.

The recipient agrees to instruct each employee that they must not
disclose any information concerning this document to others except to
the extent that such matters are generally known to, and are available
for use by, the public. The recipient also agrees not to duplicate or
distribute or permit others to duplicate or distribute any material
contained herein without [YOUR COMPANY NAME]'s express written
consent.

[YOUR COMPANY NAME] retains all title, ownership and intellectual

property rights to the material and trademarks contained herein,
including all supporting documentation, files, marketing material, and
multimedia.
 BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE
BOUND BY THE AFOREMENTIONED STATEMENT.

Table of Contents
Statement of Confidentiality 2
and Non-Disclosure 2
1. Overview 4
1.1 Where We Are 4
1.2 Targets 4
1.3 Sales Overview 4
1.4 Financial Overview 4
1.5 Functional Overview 4
2. Sales Summary 5
3. Financial Summary 6
4. Revenue 8
5. Profit 9
6. Cost 10
6.1 Monthly Breakdown 10
6.2 Yearly Breakdown 10
7. Sales Growth 12
7.1 Quarterly Sales Growth 12
7.1 Sales Growth Strategies 13
8. Summary 15

[YOUR COMPANY NAME] // [DATE] SALES REPORT 4

 1. Overview
1.1 Where We Are

Provide an overview of the company’s current position. Share any issues and
goals and key strategies to reach these goals.

1.2 Targets

Describe your company targets and explain if your target goals were met and
how they were met.

1.3 Sales Overview

Provide an overview of the company’s current sales position.

1.4 Financial Overview

Provide an overview of the company’s current financial position and the

financial journey to this point.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 5

 1.5 Functional Overview

Provide an overview of the company’s current business functions and their

state. Common functions include operations, marketing, human resources,
information technology, customer service, finance, and warehousing.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 6

 2. Sales Summary
Use this section to briefly present your sales data, highlighting important
points and milestones.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 7

 3. Financial Summary
Provide a summary of the company’s financial data. Ensure you highlight the
important points and expatiate growth rates.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 8

 4. Revenue
Provide a detailed breakdown of the company’s sales revenue.

PRODUCT NAME PRICE UNITS SOLD TOTAL REVENUE

[PRODUCT #1] $X Y $X x Y

[PRODUCT #2]

[PRODUCT #3]

[PRODUCT #4]

N.B:

Sales Revenue = Number of Units Sold by Firm x Average Selling Price

It’s imperative to note that revenue doesn’t always mean the cash received.
A portion of the company sales can be paid in cash, while the other may be
paid on credit. In the company’s income statement, sales revenue can be
listed as net revenue or gross revenue amount. The net revenue includes the
total number of deductions for return of goods and other expenses.

Importance of Sales Revenue

 Measure of profitability: Sales revenue will help your company in

measuring the profitability of major business activities.
 Decide where to invest: Breaking out sales revenue by product
category makes it easy for the company to determine product
performance. From the sales revenue, the company can successfully
adjust its strategy to improve production.
 Determines eligibility for loans or contracts: Certain loans and
opportunities to compete for government contracts are available to
businesses under a specific revenue threshold.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 9

  Determines valuation: Revenue is a significant factor in calculation of
valuations because it shows growth or market share increment.

5. Profit
How much profit does the company make from its products and services?
Provide a detailed breakdown of the company profit.

Here’s a detailed breakdown of [COMPANY NAME]’s profit:

PRODUCT SALES PRICE COST PROFIT PROFIT

NAME MARGIN

[PRODUCT #1] $X $Y $X - Y

[PRODUCT #2]

[PRODUCT #3]

[PRODUCT #4]

N.B:
Profit = Total Sales – Total Expenses
Profit (Per Sales) = Selling Price - Cost Price

It’s imperative to note the difference between gross profit and operating
profit. Gross profit defines revenue minus cost of goods sold. These costs
are direct costs that can be attributed to the production of goods the
company sells. They include the cost of materials utilized in creating
company products, including direct labor cost for production.

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 Operating profit, on the other hand, is gross profit minus other fixed and
variable expenses relating to the business. These include utilities, payroll,
and rent.

Apart from gross profit and operating profit, net profit provides the final
profit calculation, which is the bottom line. Net profit gives the company a
breakdown of the remaining revenue after accruing for every business
expense, including interest and tax.

6. Cost

Provide a detailed breakdown of the cost of sales in the business.

[INSERT ADDITIONAL INFO HERE]

6.1 Monthly Breakdown

MONTH NET SALES COST OF SALES

[YOUR COMPANY NAME] // [DATE] SALES REPORT 11

 6.2 Yearly Breakdown

YEAR NET SALES COST OF SALES

N.B:
The cost of sales defines the accumulated total of all costs utilized in the
creation of a sold product or service. It’s an imperative part of the
performance metrics of every company because it measures:
 Entity to design
 Source
 Manufacturing of goods
When calculating cost of sales, some important considerations to make
include sub-categories like direct materials, overheads, and direct labor.

Cost of sales = beginning inventory + purchases – ending inventory

[YOUR COMPANY NAME] // [DATE] SALES REPORT 12

 The cost of sales doesn’t include general expenses or administrative ones. It
also doesn’t involve costs incurred by marketing and sales departments.

Ultimately, the company knowing its cost of sales is imperative to working

out the firm’s gross profit. Once the company is aware of its gross profit, it’s
easier to determine how effectively the business manages its manufacturing
process and the revenue needed for other expenses.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 13

 7. Sales Growth
[Perform a detailed calculation of the company’s sales growth for different
periods.]

7.1 Quarterly Sales Growth

YEA FIRST QUARTER SALES SALES PERCENTAGE SALES

R GROWT GROWTH
H
2019 $9.75 million - -
2020 $10.1 million $0.35 3.5 %
2021
2022

N.B: The table above is only an example. Fill in the fields appropriately.
From the table above, the sales growth equals 3.5%, which falls significantly
below the usual 5% big companies aim to achieve.

There are other sales growth calculations to note, which include:

 Month on month sales growth: This type of sales growth calculates the
growth of a business every month. It takes the previous month as a
base and calculates the percentage growth. Month on month sales
growth helps the company take early steps to change strategy if there
are any problems to correct.

[YOUR COMPANY NAME] // [DATE] SALES REPORT 14

  Half-yearly sales growth: This method of sales growth can help the
company compare the previous year’s achievement with that of the
current year. If over 50% gets achieved by mid-year, there’s progress in
the right direction for the company.

 Annual sales growth: The yearly sales growth gets compared with the
previous year. Multiple years also get compared to work out the
progress of the company and know whether growth is in sync with its
vision and mission.

7.1 Sales Growth Strategies

After analyzing your sales growth in the company, provide a detailed

breakdown of how your company intends to improve its sales growth.

[COMPANY NAME] will employ the following strategies to improve sales

growth:

1. [STRATEGY #1]
2. [STRATEGY #2]
3. [STRATEGY #3]
4. [STRATEGY #4]
5. [STRATEGY #5]

N. B:
Suggested sales growth strategies include:

1. Understanding the sales situation: The first step to improving sales

growth is to review existing practices. If the company observes any

[YOUR COMPANY NAME] // [DATE] SALES REPORT 15

 poor results in terms of current sales rate, it will be imperative to
review the causative impact.

Major questions to ask include:

 Are sales reps hitting their KPIs?
 Is the marketing team aligned with the sales team?
 When did sales slow?
 Are gross sales climbing while net sales are staying level?

2. Looking out for reasonable expansion: It’s unadvisable to expand or

branch out to a larger market before handling or saturating the
existing market.

If your company understands the demographics of people buying the

products in a specific area, expansion should not be immediate. Every
start-up should capitalize on their existing market, as it helps them
reduce customer acquisition cost, which boosts net sales.
3. Communicating: Capitalize on social selling and consumer access to
company and product information. Social selling requires improving
communication and it also means the company needs to act to stand
out and maintain long-term success in sales.

One of the most effective ways to improve sales is through

personalization. Companies need to adopt the habit of keeping
communication casual and creating a relationship before making a
sale. If your company participates in email marketing, try addressing
each customer by name.

4. Staff training: Provide regular training sessions with sales reps to

allow them to comprehend new techniques for sales. Ensure the

[YOUR COMPANY NAME] // [DATE] SALES REPORT 16

 training sessions are relevant and include necessary resources to help
the staff expand their skillset.

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 8. Summary
Briefly summarize this report in a few sentences.

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