Gross Profit
Accounting & Bookkeeping Glossary
Definition
Gross profit is your revenue minus the direct cost of delivering your services (COGS). It tells you how much money you're making before overhead, salaries, rent, and other operating expenses. For professional services firms, gross profit margin should typically be 50-70%. If yours is lower, you have a pricing problem or an efficiency problem.
Need help with gross profit?
Learn more about our outsourced bookkeeping services and how we can help your business.
Outsourced Bookkeeping ServicesNeed bookkeeping help?
Let Steph's Books handle your books so you can focus on running your business.