What’s the difference between profit, net profit, Revenue, Net Operating revenue, current earning? And are there any terms that I should be aware of?
The difference between gross profit and net profit is when you subtract expenses. Gross profit is your business’s revenue minus the cost of goods sold. Net profit is your business’s revenue after subtracting all operating, interest, and tax expenses. Net operating revenue is more like cash flow (what you have in your account). Current earnings can mean many things and can confuse matters. Current earnings may include Accounts receivable and accounts payable.