EBIT
EBIT is the operating result before interest and taxes; it shows what the business earns from its actual activity, regardless of how it is financed and where it pays tax.
Definition
The benefit lies in comparison: two businesses with the same operations but different debt are not comparable through net profit, but they are through EBIT. For a single SME with no peer group, the gain over net profit is small.
In the Swiss income statement under the Code of Obligations, EBIT is not a prescribed subtotal. Whoever wants it has to structure the statement accordingly.
What the software must be able to do
Check whether the income statement can be structured freely and allows subtotals. Programs with a fixed report layout cannot show EBIT without manual arithmetic.
Checked Aug 2026
More terms under Bookkeeping and retention: Accrual principle Accrued liabilities Annual accounts Association accounting Balance sheet Balance sheet total Book value Break-even point Business assets Business expenses Cash book Cash flow statement Cash receipts Contribution margin Cost centre Current assets Debit and credit Depreciation Double-entry bookkeeping Duty to keep accounts EBITDA Equity Equity ratio Financial year Fixed assets Fixed costs Foreign currency General ledger Gross profit Hidden reserves Income statement Inventory count Journal Journal entry Liabilities Liquidity Loss carry-forward Membership dues Net profit Opening balance sheet Overheads Pass-through item Prepaid expenses Provision Record-keeping ordinance Reserves Retained profit Simple accounts Swiss SME chart of accounts Tamper resistance Turnover Value adjustment Variable costs Volunteer-run structure Voucher Year-end closing modules