Gross Profit vs Net Profit: Why Every Business Needs to Know the Difference
Understanding financial health goes beyond checking your revenue totals. One of the most common—and crucial—mistakes small businesses and even seasoned entrepreneurs make is confusing gross profit vs net profit. These two metrics offer very different insights into your business's performance, and knowing how to interpret them accurately is key to informed decision-making.
In this post, we’ll break down what gross and net profits really mean, how to calculate them, why the difference matters, and how tools like Profitspear can help you visualize these metrics alongside your cash flow forecast in US markets.
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