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Profit is the net income earned after all costs and expenses have been deducted from total revenues. It is generally understood to mean the after tax earnings. However, profit should always be qualified and taken in context when discussed as there are several different meanings and conditions that impact its interpretation by business entrepreneurs.

Net Profit


No other business term is so misunderstood, misstated, misleading or deceiving as the words ‘net profit’.   Accounting defines net profit as the amount earned after all associated costs and expenses are subtracted from the associated [...]



Microbusinesses are all around us.  Often overlooked and rarely given a second thought they are the backbone of our economic system.  From the local beauty salon to the Mom and Pop pizza shop; microbusinesses are everywhere.  Microbusiness is [...]

Profit Shifting in Small Business – Internal Shifting


Profit shifting in business is a term with two different interpretations.  The more modern use of profit shifting refers to large multinational U.S. based companies shifting their respective profits to other nations with a friendlier and lower [...]

Contractor’s Profitability


I’m surprised at how many visitors to this section of the website are oriented to what is a fair profit for a contractor.  I’m not referring to the industrial or the commercial contractor; I’m referring to your standard residential [...]



Profit refers the earnings from the business operations.  It customarily means the bottom line of the business income statement or its profit and loss statement.  For many business owners, it refers to the amount earned before income taxes are [...]