Gross Sales

Gross sales are the sum of income from product or services prior to deducting business expenses, returns, or discounts.

A good business person knows the difference between gross sales and NET profit very well. Gross sales always look good on paper because the figure seen is the total income for the business before any expenses are deducted.

It is important to understand that just because a business has large gross sales is no reason to assume that business has a good income.

For Instance: A business may have gross sales of $2,000,000 and only have a NET profit of $10K.