xero

Profit margins are one of the strongest indicators of business health, yet many Australian SMEs still calculate them incorrectly or only review them once a year. In today’s environment of rising interest rates, higher operating costs and tight cash flow, understanding your gross, operating, pre-tax and net margins is essential for making confident pricing decisions, controlling expenses and improving profitability. By tracking margins monthly and comparing them with credible Australian benchmarks, business owners gain a clearer picture of performance and can take practical steps to lift results.