Stacey Shrout

Account Balance is the net difference between all credits and all debits recorded in a specific account on a company's general ledger. When credits exceed debits, the account carries a net credit balance. When debits exceed credits, it carries a net debit balance. Tracking account balances supports financial statement preparation, tax compliance, and business trend analysis.

Net Profit Margin shows net profit as a percentage of total revenue. It gives the net profit earned for every dollar of revenue generated and is a good indicator of profitability and operating expense management.