ബിസിനസ് ലാഭം കണക്കാക്കാൻ വിൽപ്പനയിൽ നിന്ന് യഥാർത്ഥ ചെലവുകൾ കുറയ്ക്കുക. ഡ്രോയറിലെ പണം ലാഭമല്ല.
How to calculate business profit in a way that matches reality: start from sales you actually made, subtract the cost of those sales, then subtract operating costs, interest, and the owner’s fair pay. The split between gross and net is explained in net profit vs gross profit.
A workable calculation
- Revenue for the period (invoiced sales, not “expected”).
- Minus direct costs: materials, direct labour, packaging.
- That result is gross profit.
- Minus rent, salaries, power, marketing, software, repairs.
- Minus interest.
- Minus a fair owner salary if it was not already in salaries.
- What remains is a practical net profit before tax. Tax is still to be provided.
Tricks the mind plays
- Counting a loan as income.
- Ignoring stock that expired.
- Treating personal expenses through the firm as “business” without noting them.
- Forgetting supplier bills you have not paid. Unpaid is still a cost.
Use the result in the financial health checklist.
Do it monthly
A yearly surprise is how firms run out of cash while feeling busy. Tie invoices to this number using invoicing steps.
Frequently Asked Questions
What is the basic profit formula?
Profit = revenue − expenses that belong to that revenue. Say whether you mean gross or net.
Should I include GST in sales?
For profit, use sales excluding GST you collected for the government. GST you owe is not your income.
Is profit the same as cash?
No. Credit sales increase profit before cash arrives. Loan repayments of principal are cash out but not an expense.