Difference Between Gross Value and Net Value: Understand the Distinctions

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When it comes to finances, have you ever come across the question of whether a transaction is worth the gross or net amount ? If so, this is the right article for you.

Here in Brazil, these terms are known as gross value and net value . This concept is widely used in accounting and is essential for a better understanding of your finances. It plays a crucial role in several transactions, whether it is calculating the return on an investment, the profit of a company or understanding the payroll .

Therefore, it is essential that you fully understand these terms. This way, you will have a clearer and more complete view of your finances.

Are you ready to master the world of finance? Then keep reading. This argentina whatsapp list article is the tool you were missing to understand, once and for all, the difference between gross value and net value . And remember: with the right knowledge, you have the power to make more informed and accurate financial decisions.

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What is the difference between gross and net value?
Now, in simple terms, the difference between gross value and net value is in the discounts and deductions applied to the original value.

Gross value : This is the total value before any discounts. In the case of salaries, for example, it is the agreed value before discounts such as social security, income tax and other benefits.
Net value : This is the final amount that the person or company actually receives, after deducting taxes, fees or other deductions.
Example: If an employee has a gross salary of R$5,000.00 and, after discounts, receives R$4,000.00, then the net salary is R$4,000.00.

BR - INBOUND - Guide - CLT
What is net worth?
Also called net income , i.e. net profit , is a crucial concept in financial management that refers to the amount left after subtracting all expenses, taxes, costs, charges and deductions from a gross initial amount. In other words, it is the real and final amount that a company or individual receives.

To understand better: