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What is an Income Statement?

Small Biz Trends

An income statement shows a company’s revenue, total operating expenses, and net income. They Indicate Profitability. These statements provide a good picture of a company’s profitability. Take expenses and subtract revenues to get net profit for a reporting period. Net Income.

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The Benefits of Having an Ecommerce Presence

Independent Retailer

According to recent data from Xero , accountants and bookkeepers believe ecommerce platforms generally outperform their purely brick-and-mortar counterparts – with 70 percent of respondents stating that online platforms have a higher net profit margin. . The report surveyed accountants and bookkeepers in the U.S.

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Margin vs Markup. What is the Difference?

Retail Bound

Gross profit = (Total Sales – Cost of Goods Sold) Net profit – Measures the profitability after accounting for all business operational expenses. If the business makes more than it spends, it is a net profit. If it makes less, that is a net loss.

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KPIs In Retail: 7 Essential Metrics to Level Up Your Retail Game

V Count

Gross and net profit Gross profit is the amount of money you have left after deducting the cost of goods sold from revenue. Your net profit, on the other hand, reflects the amount of money you have left after having paid all your allowable business expenses — including administrative and operating costs.

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How to Start a Wholesale Business

Independent Retailer

Now that you know what wholesalers do, you also need to understand profit margins in order to make money. The profit margin on products is calculated as a gross profit margin and does not factor in the operating expenses, so margins must be healthy enough to generate a net profit after all expenses, according to Chron.