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How Shopify Accountants Calculate Gross Margin?

Shopify accountants calculate gross margin by subtracting the cost of goods sold (COGS) from total sales revenue, then dividing the result by total sales and multiplying by 100. They analyze Shopify reports, and account for platform fees, shipping, and discounts to ensure accuracy. This helps assess product profitability and guides pricing, inventory, and marketing strategies for better financial performance. To know more visit here https://straighttalkcpas.com/accounting-services/ecommerce/shopify

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How Shopify Accountants Calculate Gross Margin?

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  1. How Shopify Accountants Calculate Gross Margin? Understanding gross margin is key to running a profitable Shopify store. It shows how much money you keep after covering the cost of goods sold (COGS), and it helps you measure the health of your business. Shopify accountants play an important role in accurately calculating this figure to support smarter pricing, budgeting, and financial planning. Here is how to calculate gross margin:- Step 1: Collecting Revenue Data Step 2: Determining COGS Step 3: Using Inventory and Tools Step 4: Analyzing the Margin Step 5: Strategic Recommendations

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