What is my gross profit (gross margin) percentage and is this reasonable for my type of business?

Gross profit is the difference between the value of the sales and the cost of sales. Understanding your gross profit is a really important building block for any small business owner, so spend some time with your

accountant familiarising yourself with this figure and what it means!

Gross Profit Percentage = Gross Profit ÷ Sales x100%

Increase your gross profit margin by increasing selling price or reducing cost of sales