What is proceeds vs profits?

Proceeds refer to the total amount of money received from the sale of goods or services, while profits refer to the amount of money earned after deducting all expenses from the total revenue generated. In other words, proceeds are the gross income earned by a business or individual, while profits are the net income earned after deducting all operating costs, taxes, and other expenses. Proceeds can be higher than profits, indicating that the business is generating a lot of revenue, but may also have high operating costs that are eating into its profits. Alternatively, the proceeds may be lower than profits if the business is generating only a small amount of revenue, but has effectively managed its expenses to maximize its profits.