The total amount on an invoice before any deductions like discounts, credits, or adjustments are applied.
Gross amount is the total value of an invoice before any deductions are subtracted. It includes all line items, labor, materials, and services at their full price. Think of it as the starting number before discounts, credits, or other adjustments bring the total down.
For contractors and small business owners, understanding gross amount matters because it reflects the full value of work performed, even if the final amount collected is different.
Gross amount is the total before deductions. Net amount is what remains after subtracting discounts, credits, or allowances. For example, if you invoice $5,000 for a project but offer a 10% early payment discount, the gross amount is $5,000 and the net amount is $4,500.
On a typical invoice, the gross amount is the subtotal of all line items before taxes and discounts. It gives your client a clear view of the full scope of charges. Taxes are usually calculated on the net amount after discounts, not the gross amount.
Tracking gross amounts helps you understand total revenue potential, measure discount impact, and reconcile your books accurately. When reviewing financial reports, gross amount shows what your work is worth at full price.
Invoicer calculates gross and net amounts automatically so your invoices are always correct.
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