Net Sales, also known as net revenue or net receipts, is a key metric for businesses that helps to measure the total income generated by sales of goods and services over a specific time period. On the other hand, Cost of Goods Sold (COGS) represents the direct costs associated with producing something that you sell – such as materials, labour, and other associated expenses. Together, these two metrics provide an insight into your business’ profitability by showing your gross profit – i.e. the amount of money left after deducting COGS from your Net Sales. This figure can be used to understand how efficiently and effectively your company is generating profits and making the most of its resources.