What net profit means
Net profit is what is left after every cost of running the business, job costs and overhead, has been paid.
Also called net income, bottom line.
Where it shows up in your business
Net profit is what pays you back for the risk and funds new trucks and slow months. Look at it monthly on your profit and loss, not once a year at tax time.
Work it out
- Free calculator: Profit margin calculator
- Money guide: Gross vs net margin
- Money: Money guides for contractors