How Do You Calculate The Percentage Of Gross Profit?
In business, management must keep a close accounting tally of several financial levels: the cost of doing business, gross profit and net profit. Every business has property that is considered assets, and if these assets are added to, or their value increases, then the increase must be considered part of the business gross profit in a given period of time. Bank accounts are considered assets. Obligations that must be paid out of the business funds are liabilities. From these, the percentage that is gross profits can be deduced. Gather together all of your business records that show assets (checking accounts, savings accounts, real estate property) and liabilities (amount spent while conducting business, such as money spent on inventory and payroll, over the specified period, and all debts currently owed). Add together the value of all assets and write this amount at the top of a sheet of paper, and then add together the amount of all liabilities and business operation costs and write th
