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NET PROFIT IN REGULAR WORDS: This is what is rema

NET PROFIT

IN REGULAR WORDS: This is what is remaining after your business has paid all of its expenses.

WHY YOU SHOULD CARE: This is the number that tells you whether your business actually made money.

THE NUMBER:
Net Profit = Gross Profit – all expenses

MY CANADIAN FINANCE GAL TAKE:
This is the bottom of the staircase when you have stripped away all your cost. Your "bottom line". If revenue is vanity then net profit is sanity.

This is part of our 📚 SEPTEMBER: Know Your Business' Numbers series

#NetProfit #dubrovnik #KnowYourNumbers #incomestatement #femaleaccountants

GROSS MARGIN IN REGULAR WORDS: The percentage of

GROSS MARGIN

IN REGULAR WORDS: The percentage of each revenue dollar you have left after your direct costs (eg: labour, materials). (note: anything with "margin" in the term is always a %)

WHY YOU SHOULD CARE: Your gross margin helps you understand whether your pricing structure and how you are delivering your sales are working or not.

THE NUMBER:
Gross Margin = Gross Profit ÷ Revenue × 100

MY CANADIAN FINANCE GAL TAKE: It is helpful to understand what the GPM is for your industry and see how your GPM compares.

This is part of our 📚 SEPTEMBER: Know Your Business' Numbers series

#GrossMargin #Profitability #PricingForProfit #BusinessStrategy #FemaleBusinessOwner

GROSS PROFIT IN REGULAR WORDS This is what you ha

GROSS PROFIT

IN REGULAR WORDS This is what you have left from your revenue after paying the direct costs (eg: labour, materials) of delivering what you sold. It is what remains of the original pie after some pieces have been served to those that directly helped make it.

WHY YOU SHOULD CARE: This tells you whether what you're selling is actually profitable before you account for the costs of running the rest of your business (the overhead). Is your sales price greater than what is cost you create that item?

THE NUMBER:
Gross Profit = Revenue – Cost of Goods Sold

MY CANADIAN FINANCE GAL TAKE:
Increasing sales (top line) doesn't always mean growing your gross profit. You need to keep an eye on what you're retaining, not just what you're collecting in sales.

This is part of our 📚 SEPTEMBER: Know Your Business' Numbers series

#grossprofit #womenfinancenetwork #canadianmoneytalk #smallbusinessowners #smallbusinesstipseries

REVENUE IN REGULAR LANGUAGE: This is the total mo

REVENUE

IN REGULAR LANGUAGE: This is the total money your business earns from selling your products or services. The very top line of your income statement. The whole pie; before you start serving pieces to your expenses.

WHY YOU SHOULD CARE: Revenue tells you how much business you're generating. It will also help you solve pricing issues in the future. Note; a high revenue number doesn't necessarily mean you're making money.

THE NUMBER:
Revenue = Sales – Returns & Discounts

MY CANADIAN FINANCE GAL TAKE: Revenue is vanity. Its the number that often gets thrown around at cocktail parties and networking events. Think "beauty is only skin deep" here.

This is part of our 📚 SEPTEMBER: Know Your Business' Numbers series

#KnowYourNumbers #SmallBusinessFinance #BackToBusiness #WomenInBusiness #financialliteracyforwomen

By viewing this 2025 CFG #WRAPPED, you acknowledge $By viewing this 2025 CFG #WRAPPED, you acknowledge that all numbers presented are fictional, exaggerated, approximate, or completely made up for comedic purposes. No warranties, express or implied, are provided. If accuracy is required, please consult literally anyone with Excel. #bookkeepingforsmallbusiness #fractionalcfo #accountantlife #ebita #bookkeepersofinstagram #exceltips$

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