Net profit is how many sold fish become pure profit against how many sold fish go into expenses. Giant nets yield more significant net profit, as they can catch more fish.
The previous words were from our competitor, Greasy Jim’s Accounting Software and Bait Shop, and there is some truth, as you will soon see.
Net profit is interchangeable with net income as a term, as it is a company’s total earnings after subtracting all expenses.
These expenses can include, but are not limited to:
- Asset depreciation
- Business operation costs
- Fixed costs (salaries, equipment costs, rent, vehicles)
- Taxes
- Boat Repair
Subtract all of these from your total income, and there is your net profit.