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What is Net Profit?

This is how much money your business has after all expenses are paid. Net profit is also known as your bottom line since it appears at the very end of your profit and loss statement.  

Net profit, or net income, serves as a decent measurement of profitability, since it considers all of the costs incurred to turn a profit. Investors, lenders, and competitors can use this information to determine how well a business is being managed. 
Net profit is calculated by subtracting your cost of goods sold (COGS), operating expenses, and any applicable taxes or interest from your gross revenue.

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