Distinguish margin from cash
Gross profit compares sales with the relevant cost of goods sold. Net profit also reflects operating expenses and other recognised items. Cash in the bank differs because of credit sales, supplier timing and other movements.
Your working checklist
- Use the same reporting period for revenue and associated costs.
- Check returns, discounts and stock valuation adjustments.
- Reconcile expenses and customer balances before relying on results.
- Compare reports by branch only when cost allocation is consistent.
Put it into practice
A profitable sale on credit may not have generated cash yet. Similarly, purchasing stock can reduce cash before the stock becomes an expense through sale. Review the Crystal profit-and-loss screen with your accountant and agree the reporting definitions.
Questions before you decide
Where should I start?
Use the checklist with your operations and finance teams, then bring a representative example to a Crystal ERP demo.
Is this a quotation or professional advice?
This is a practical buying or operating guide. Obtain a written software quotation and use your accountant or relevant adviser for business-specific decisions.