High revenue doesn’t guarantee high profits if your costs are equally high. Gross profit provides the first layer of profitability analysis by showing what remains after direct production costs. Use gross profit to evaluate your core business model’s viability and production efficiency. Use net profit to assess overall business profitability after all expenses. Your gross […]
Category Archives: Bookkeeping
This can be a major advantage in industries that periodically suffer from sharp declines in sales. Since a company’s total costs (TC) equals the sum of its variable (VC) and fixed costs (FC), the simplest formula for calculating a company’s variable costs is as follows. A higher contribution margin indicates greater profitability for each product […]
To get started, schedule a free, no-obligation consultation to discuss your business and learn more about our bookkeeping services. Manchester Bookkeeping Network members help you stay ahead of the tax curve by partnering with your team. Year after year our members find clients money by spotting incorrect charges, double billing, ancient recurring fees that should […]