How to Calculate Your Real Business Profit
Learn how profit is calculated in Zuru Business Manager and how tracking your restocks and expenses shows your true net profit.
Tunde BelloProduct Manager
2 min read
Many business owners see cash moving every day and assume the business is doing well. But being busy is not the same as making profit.
If you do not know your exact costs, you cannot know your take-home profit. Zuru Business Manager calculates your profit from your daily records, helping you see where your money actually goes.
Gross profit versus net profit
Profit comes in two main stages: gross profit and net profit. Confusing the two is why many store owners run out of cash unexpectedly.
| Profit type | Formula | What it tells you |
|---|---|---|
| Gross profit | Sales minus cost of goods | What you make on products before shop bills |
| Net profit | Gross profit minus expenses | The true money left over for your business |
Gross profit only covers the product itself. Net profit is what keeps your doors open after paying bills.
How Zuru Business Manager calculates profit
You do not need to sit down with a calculator at the end of the month. Zuru Business Manager builds your profit figures directly from your everyday entries.
- Total sales: everything you sold during the period.
- Cost of goods: what you paid to buy those specific items when you recorded a Restock.
- Gross profit: total sales minus the cost of goods.
- Expenses: daily operational costs like rent, salaries and transport recorded in Cashflow.
- Net profit: gross profit minus total expenses.
For example, suppose you sell goods worth ₦150,000 in a week. If those items cost you ₦95,000 from your supplier, your gross profit is ₦55,000. If you paid ₦15,000 for shop generator fuel and transport, your net profit is ₦40,000.
Three habits that keep your profit numbers true
Because profit calculations rely on your records, incomplete entries give misleading reports. Building three quick habits keeps your calculations accurate.
- Record every Restock as soon as goods arrive, including the cost price you paid.
- Record every Sale immediately on the Zuru App so your stock and sales match.
- Log every payout in Expenses, from staff salaries to small transport fares.
Where to find your numbers in the app
Zuru Business Manager divides your business into two connected modules: Store and Cashflow.
- Open Store to manage what you sell, update stock levels and see sales.
- Open Cashflow to see your payment accounts, track customer debts, log expenses and review profitability.
Check your profit today
Knowing your exact profit gives you control over your prices and spending. Open Cashflow on the Zuru App to review your latest expenses and see your net profit for the week.
Frequently asked questions
What is the difference between gross profit and net profit?
Gross profit is total sales minus the cost of the goods sold. Net profit is what remains after you also subtract business expenses such as rent, transport and salaries.
How does Zuru Business Manager know my cost of goods?
Zuru Business Manager tracks cost of goods using the prices you enter whenever you record a Restock in the Store module.
Can I record sales offline and still track profit?
Yes. You can record sales while offline. Once your phone reconnects to the internet, your records synchronize and update your totals.
Tunde BelloProduct Manager
Leads the Store module and the roadmap. Former pharmacy owner.
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