It is the goal of every business - to be profitable. But, how do you truly know the profitability of your small business?
With incoming revenue and outgoing expenses, it is easy to get lost in the numbers.
While no single metric should be used to determine profitability of a business, small business accountants can use net profit margin to gain an insight into the success of your business.
Let’s discuss the importance of this metric and review the differing factors that contribute to the calculation of net profit margin between product-based businesses and service-based businesses.