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Where Does Your Money Go?

An interactive guide to understanding your real profit. Step by step, no jargon.

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How much money came into your business this month?
For example: $8,000
Level 1 — The Basics

Product / Material Costs

How much did you spend on products, ingredients, or materials to make what you sell?

35%
Gross Profit
− =
Product costs
Gross profit
This is your Gross Profit — what remains after paying for what you sell. Let's keep going.
Level 1 — Fixed Costs

Now let's subtract the costs you pay every month, no matter how much you sell.

Rent
Utilities (electricity, water, gas, internet)
Employee wages
Operating Profit
− =
Product costs
Fixed costs
Operating profit
Congratulations! If you understood everything up to here, you already know more about your business than many people who have been running one for years.
Level 2 — The Hidden Stuff

These are the costs that many business owners forget about — until they hit.

Taxes

The government's share. This varies by country and business type.

15%
Maintenance / Repairs

Something always breaks. Set aside money every month so you are ready.

Small Expenses

Cleaning supplies, packaging, receipt paper, office supplies, bank fees...

NET PROFIT
− =
Products
Fixed
Hidden
Net Profit
Knowledge is not scary. Knowledge is POWER.

Your REAL Profit

Revenue 100%
Product costs
Fixed costs
Hidden costs
NET PROFIT

Level 3 — Call Your Accountant

There are things this tool cannot calculate: depreciation, tax deductions, amortization, payroll taxes, insurance, and legal costs.

A good accountant does not cost you — they pay for themselves.

This tool gave you clarity. An accountant will give you strategy.