Profit Margin is the Percentage of Revenue

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Profit margin is the percentage of revenue left after paying business expenses.

There are two main types of profit margin.

1. Gross profit margin is the portion of income left after paying for the goods and services you sell.

2. Net profit margin is the portion of income left after paying all costs and taxes.

Remember, without accurate bookkeeping, profit margins are likely to be miscalculated, potentially leading to misguided business decisions.

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