What is Net profit and how do you calculate it? Net profit is your total income minus all expenses.
Step #1 - Work out your Gross profit. Which is your revenue minus costs of goods sold.
Step #2 - Take your gross profit and deduct your operating expenses, things like payroll, rent, insurance, utilities and so on.
Step #3
Deduct tax.
This figure is your Net profit, also known as your bottom line.
Net Profit = Gross Profit - Costs of Goods Sold - Expenses - Tax
Check out more guides and info here:
[ Ссылка ]...
Xero is beautiful accounting software for small businesses and their advisors. See your cashflow in real-time with online accounting, invoicing, payroll, billing & banking. Just login and see the difference.
Sign up for a free trial at:
[ Ссылка ]...
Like us on Facebook: [ Ссылка ]
Follow us on Twitter: [ Ссылка ]
Follow us on LinkedIn: [ Ссылка ]
Subscribe to our YouTube Channel here: [ Ссылка ]...
For Xero product support please visit: [ Ссылка ]
These videos are intended as a general guide only. Please consider what is best for your business. If you require further information specific to your business needs, please speak to your professional advisor/s
