Auditor Metrics – Page 2

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.

Net Sales is the revenue a business retains after subtracting discounts, product returns, and damaged goods from Gross Sales. It is a more accurate measure of actual earnings than Gross Sales alone.

Non-operating expenses are the sum of all costs unrelated to a company's core business operations, such as interest payments, asset disposal losses, foreign exchange losses, restructuring charges, and one-time write-downs. These expenses are typically non-recurring and do not arise from day-to-day business activities.

Operating expenses (OPEX) are the costs a business incurs through normal operations that are not directly tied to producing goods or services. Per QuickBooks, OPEX represents the Expenses section on the Profit & Loss statement, excluding cost of goods sold (COGS) and other expenses. Common examples include sales and marketing costs, administrative salaries, and research and development expenditures.

Payouts are the funds a payment processing platform transfers to your bank account after collecting customer payments on your behalf. The deposited amount reflects gross sales minus processor fees, refunds, and chargebacks, delivered on a schedule you configure.

Payroll Expenses represents the total cost incurred by a business to compensate its employees and independent contractors. This includes direct payments such as salaries, wages, and bonuses, as well as associated costs like employer-paid taxes, health insurance premiums, retirement contributions, and other benefits. This metric is a key indicator of a company’s operational costs and is typically a significant portion of a business’s overall expenses. Understanding Payroll Expenses is crucial for financial planning, budgeting, and evaluating profitability

Purchases is the total amount spent on goods bought from suppliers for the purpose of reselling at a profit. It records procurement spend at the time of purchase, before inventory adjustments or labour costs are applied.

Refunded Charges is the total value of payments returned to customers within a defined period. It measures how much revenue you are reversing and helps identify product, service, or fulfilment issues driving refund volume.

Revenue is the total income generated from a company's primary business operations before deducting any costs or expenses. Often called the "top line" because it appears at the top of the income statement, revenue represents the gross amount earned from core business activities such as product sales, service fees, subscriptions, or licensing agreements.

Total Funding is the cumulative amount of external capital a company has raised across all financing rounds, from seed through late-stage investment.