How to get correct dimensions

I have created a small drawing with a number of squares and circles in it.
When I set the square size for .75" x .75" and have it set as a fill, the finished size comes out to .68" x .68".
After seeing that I tried it as an outline removing material on the inside of the square.
Does this require cutting on the line or outside of it?
If so, what is the reason for it?
Thanks for any help.

If you want a .75" square and your drawing is .75" you need to cut on the outside to get the right size. If you cut on the line you will loose half the diameter of your bit size in the cut.

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Thanks Wayne.
In this case I am trying to remove the material. I tried the inside cut but it didn’t help. After doing some research I thought I would check my g-code settings for x and y.

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Cut a single line and measure the width of the cut.
Is your bit actually the diameter you think it is?
Pocket that same square in the same place a second time and if it gets larger then you have deflection either in the bit or machine. Adjust accordingly.
Have you calibrated steps per mm?
Search that topic and check that.