Net profit is also known as your bottom line since it appears at the very end of your profit and loss statement.
Net profit refers to the remaining earnings of a business after deducting all expenses, including operating costs, taxes, and interest, from its total revenue. It represents the actual profit generated by the business and indicates its financial performance. Net profit is an essential metric for small business owners as it helps assess the profitability and sustainability of their operations. By monitoring net profit over time, business owners can make informed decisions regarding pricing, cost management, and growth strategies to maximize their bottom line and achieve long-term success. It is also a key factor considered by investors and lenders when evaluating the financial health and potential of a small business.