yo I want to bring up the subject of Owner Equity to Profit Ratio. The reason is I believe many don't realize they are working for free or cheaper than they realize. ROI stands for Return On Investment and every business must have investment of some sort. The larger the business normally the larger the Investment. If you barrow money you have to pay interest. If you bank your money you are paid an interest. So are you accounting for that Interest on your investment in your business when you figure your profit at years end. You might be very surprise at your profit margin once you pay your self interest on your investment of owners equity. In My case the reverse of this is true to some extend, but I am still behind the 8 ball. My investment has long been written off and the value of that investment in equipment is decreasing in value. I am making no provisions for replacement equipment with an equipment account. Therefore part of what I take out of the business is in fact a percentage of Owner Equity, Not Profit. One of the points I would like to make is. In some cases, in fact many cases your employees are making more money than you in the form of salary. Your higher income is actually interest income.