Welcome to Know Your Numbers, our monthly series breaking down key business metrics: what they mean, why they matter, and where to find them in QuickBooks Online.First up is Gross Profit Margin. This is the share of every sales dollar left after covering your direct costs. The best part? QuickBooks Online calculates it automatically in your Profit and Loss report. This month’s question: are you actually making money on what you sell?What is gross profit margin? Let's see it in action Where to find it in QuickBooks Online So what's a good number? Your one move this month That's the habitWhat is gross profit margin?Gross profit is what's left of your sales after subtracting your direct costs, also known as cost of goods sold (COGS). Direct costs only exist because you made a sale: materials, inventory you resold, subcontractors, direct labor on a job, shipping to fulfill an order. Rent, marketing, and software subscriptions don't belong here. These represent overhead expenses, which ente
