Subsection of: Creating an Effective Business Plan
Adapted from content excerpted from the American Express® OPEN Small Business Network
| Income | Income generated by the business |
| Cost of goods | What it costs the business to sell its inventory or service |
| Gross profit margin | Revenue minus cost of goods |
| Operating expenses | Overhead and labor expenses necessary to run the business |
| Total expenses | Sum of overhead and labor expenses |
| Net profit | Gross profit minus total expenses |
| Depreciation | The amount by which the value of a company asset has fallen in a given time period |
| Net profit before interest | Net profit minus depreciation |
| Interest | All interest on debts |
| Net profit before taxes | Net profit minus interest |
| Profit after taxes | Profit minus interest. This is also referred to as the bottom line. |
| To Financials Toolbox | |