Glossary
Net profit
Net profit is what is left of your sales after subtracting the cost of goods, all running costs and taxes.
What it means for a shop owner
It differs from gross profit, which only subtracts the cost of goods. You can sell plenty and keep little because rent and wages ate it. This is the number that tells you whether the shop does well.
A worked example
Sales are 10,000 and cost of goods 6,000, so gross profit is 4,000. After 3,000 of costs, net profit is 1,000.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes