How to Compute Your Business Income


Since one of the main aims of engaging in business activities is to earn income or profit. It is very essential that business owners understand how to compute their income/ profit level, so as to decipher whether the business is indeed gaining or losing. Because it is a most common error to think that a business is gaining just because it is making sales, (yeah, we get that all the time).

Most businesses leave the job of computing their business income to their accountants. It is a practical move because accountants are technically competent to do the job. However, it is crucial that a businessperson understand the factors in computing business income so that they can better interpret and manage the financial result of the business operation. Furthermore, it can help the business determine which product or service is earning or incurring losses. As such, they can decide which product or…

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