What is the Difference Between Gross and Net?

If everything seems under control, you’re just not going fast enough. – Mario Andretti

As a business owner you may start off being the sole owner whose responsible for completing task from A to Z.  But as your business progresses and grows, some of the day to day accounting assignments will need to be supported by an intern or a full-time assistant.  Either way, as a business owner you are giving up full control and allowing someone to step in and help you grow your business.

​The accounting responsibilities are important which means educating your staff should always be a key objective for ensuring the financial statements or Excel worksheets are updated correctly.  Below we provide the definition of Gross and Net and also link you up to a few examples of clarity between Gross numbers VS Net numbers in accounting.  Examples which can also be used as internal self-development and education to key personnel.  
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Gross VS Net Income:

Gross: Gross income is calculated by subtracting the cost of goods sold from revenue.
Net:  Net income is calculated by subtracting expenses such as SG&A (selling, general and administrative expenses), interest payments and taxes from gross income.

Follow the link here to educate your staff more about gross and net values.

​You can also visit our website and learn more about Fontenot & Associates Solutions services and how we are able to support with establishing policy and procedures in addition to training staff, which releases the stress from current staff and management.​