Gross profit and net profit are inter-dependent so calculating the right values is important. Net Profit Gross Profit - Expenses. Gross Vs Net Income Importance Differences And More Bookkeeping Business Learn Accounting Accounting Classes Any business that is performing well shows a positive gross profitThe money estimated as gross. . All profit metrics evaluate revenues and expenses in their formulas. Returning to our Elegant Eyewear example say the company had SGA expenses of 50000 and interest. Net profits appear on the credit side of Profit and Loss Account. It is the difference. Gross profit is the sales income minus the direct costs of getting the article to sale. For example if your company has a revenue of 10000 and the cost of goods sold. This implies that the profit before any deductions is called the Gross profit. This would keep the records maintained and help in determining if your business is...