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I'm always fascinated by the fact that more attention seems to be paid to gross profit than to net profit. For those of you who are still fuzzy on the difference, here's a quick review.
Total sales is the amount of money you collect for the projects you build (although some may call it "income" or "revenue" or "volume"). From this amount, two types of expenses must be paid. The first are type above-the-line expenses, which are also called "cost of goods sold" or "job costs." These include everything it takes for you to build...
Melanie Hodgdon, president of Business Systems Management, provides
management consulting and coaching for contractors. She co-authored A Simple Guide to Turning a Profit as a Contractor, with Leslie Shiner. Business management,