EBITDA vs EBIT vs net profit: key differences, formulas and examples

EBITDA vs EBIT vs net profit: key differences, formulas and examples

Accounting & Taxes, GST IndiaLeave a comment

A business owner reviews the quarter’s numbers. EBITDA shows ₹3,50,000. Net profit shows ₹1,90,000. Both are positive and both are called “profit”, yet one is nearly double the other. Which number reflects how the business actually performed? Both do, because they answer different questions. EBITDA, EBIT and net profit measure profitability at different stages of…

Bad debt expense: how to calculate, record and recover unpaid invoices

Bad debt expense: how to calculate, record and recover unpaid invoices

Accounting & Taxes, GST AustraliaLeave a comment

You delivered the work, sent the invoice and recorded the revenue. Three months later, the customer has gone quiet, and the accounts receivable balance on your books looks less like an asset every week. Bad debt expense is the accounting mechanism that corrects your financial statements when an invoice moves from “they’ll pay eventually” to…