Is total revenue the same as gross profit?
Asked 5 years ago
I recently started an online store through Shopify and have run into a bit of confusion. I always thought that total revenue was different to gross profit, but now I've heard the term "net income" come up a few times and I'm not really sure what is what. Can anyone give me a basic explanation of total revenue, gross profit, and net income.
Abeeha Qasmi
Saturday, October 02, 2021
Total revenue is the untouched amount of money you earn after selling your goods and service without excluding any expenditures. In contrast, gross profit is the amount of money you earn minus the product and marketing costs. At the very end, net income is the gross profit minus the tax and debt payments and every other expense.
Understanding these three terms is crucial for the successful financial forecasting and budgeting of your business.
Please follow our Community Guidelines
Related Articles
Top 6 Shopify Sales Funnel Apps
Shir Lapidot
October 25, 2021
Loyalty Programs for Shopify to Boost Sales: Best Apps and Easy Set Up
Brody Hall
December 29, 2021
How to Use E-Commerce Influencers to Get More Sales for Your Store
Brody Hall
January 26, 2022
Related Posts
Can't find what you're looking for?