Our small business accountants in Sydney explain how to obtain your gross and net profit margins
We believe that every business owner needs to somewhat know how to obtain his or her gross and net profit margins, after all it will show how much profit you are earning. Our small business accountants in Sydney will tell you how to obtain your gross and net profit margins.
Firstly, you need to know what they both mean:
• Gross profit margin: is the measurement of a company’s efficiency during the income production and is the amount of profit left after all direct and indirect costs are paid
How do we calculate your gross profit?
• Gross Profit = Total Revenue – Costs of Goods Sold
How do we calculate your net profit?
• Net Profit = Gross Profit – Company Overheads and Taxes (net income)
We hope our business accountants helped you gain some understanding on how you calculate how much money your business is earning.
Feel free to contact our small business accountants in Sydney for all your accounting needs.