Mike Anderson says labor gross profit only makes sense when shops understand how employee costs are reflected in their P&L.

Discover how gross profit and operating income differ and why both are crucial in assessing a company’s financial health. Get ...

A company determines its gross profit by taking its sales revenue, and then subtracting the cost it paid to obtain the goods it sold. For example, if it cost a bookstore $7 to obtain a book from a ...

A profit and loss statement summarizes a business’s revenue and expenses. Learn how to use a profit and loss statement to ...

Gross Profit vs. Net Profit: What Is the Difference? Your email has been sent A business’s health is measured differently depending on which costs are considered. Gross profit paints a different ...

A business may opt to use installment sale accounting when it sells goods but the customer pays on an installment plan that exposes the business to considerable risk of default. Instead of counting ...

Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Gross income measures how much total income a company brings in from the sale of its products and services minus the cost of producing those goods and services. In contrast, net income is the profit ...