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Money & ProfitProfit MarginProfit margin is the percentage of revenue that remains as profit after certain costs and expenses are deducted.Read definition Money & ProfitRevenueRevenue is the value a business earns from its normal activities, such as selling products, providing services, charging subscriptions, collecting commissions or renting assets, during a specific period. It is measured before most business costs and expenses are deducted.Read definition Cash FlowCash FlowCash flow is the movement of cash and cash equivalents into and out of a business during a specific period. Money coming into the business is a cash inflow. Money leaving the business is a cash outflow.Read definition Tax & ComplianceVATVAT means Value Added Tax. It is an indirect consumption tax charged on taxable goods and services supplied in Kenya and on certain imports. A VAT-registered business collects VAT on taxable sales and accounts for it to the Kenya Revenue Authority (KRA).Read definition PricingMarkupMarkup is the amount or percentage added to cost to arrive at a selling price.Read definition AccountingAccounts ReceivableYou made the sale. The customer has the product. You still don’t have the money.Read definition InventoryInventory TurnoverInventory turnover measures how many times a business sells and replaces its average inventory during a period.Read definition
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AccountingAccounts PayableYour best sales month can end with no cash to pay your suppliers.Read definition AccountingAccounts ReceivableYou made the sale. The customer has the product. You still don’t have the money.Read definition AccountingAssetsYour business can own millions and still have no cash.Read definition PlanningBreak-Even PointThe break-even point is the level of sales where total revenue equals total costs.Read definition Cash FlowCash FlowCash flow is the movement of cash and cash equivalents into and out of a business during a specific period. Money coming into the business is a cash inflow. Money leaving the business is a cash outflow.Read definition AccountingCost of Goods Sold (COGS)Cost of Goods Sold is the direct cost attributable to the goods a business sold during a specific period.Read definition Money & ProfitEBITEBIT is a measure of a business’s earnings before interest and tax are deducted.Read definition Money & ProfitEBITDAEBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation.Read definition Money & ProfitFixed CostsYour customers can disappear. Your sales can drop. Your bills don’t.Read definition Money & ProfitGross ProfitGross profit is the amount left after subtracting the direct cost of the goods or services sold from revenue.Read definition
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