Profit and Expenses Kenya

Common Profit Calculation Mistakes

Updated 21 Jun 2026

Avoid common mistakes that make profit look higher or lower than reality.

Profit mistakes can cause poor decisions because the owner is working with the wrong numbers.

Ignoring expenses

Sales without expenses do not show profit. Every cost should be recorded.

Mixing personal and business money

Personal withdrawals and business expenses should be separated.

Forgetting stock costs

Stock purchases and cost of goods affect profit.

Counting unpaid invoices as cash

An invoice may show income, but cash flow depends on whether the customer has actually paid.

Accurate profit calculation requires clear daily records.

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