The final sum of money that you get to take home (meaning the business’ actual profit). It subtracts all un-controllable charges such as Bank Charges, Interest Payments, Taxes. It is the true profit that your business has earned.
Also referred to as Net Earning and Net Income. You may choose to divide this amount into business shareholders, or reinvest for further business growth!
The formula is:
Gross Profit – Operating Profit – Taxes, Interest Payments, Bank Charges = Net Profit
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