InvoiceBerry Tips for for Freelancers & Small Businesses 7 Small Business Accounting Hacks for Success | Page 10

7. Calculate Your Margins
You should know your margins and should be constantly trying
to improve them:
• your margin requires calculating net profit margin (NPM)
• NPM = (Revenue - Business Expenses) / Revenue
• convert the answer into a percentage
Knowing your NPM will help you understand where your
business is and get you to consider how to improve the NPM.