What is Gross Income?
Gross income is the total income earned by a business before subtracting any expenses,
such as manufacturing or selling costs. Expenses include rent, utilities, and employee wages.
It is typically measured over a year, but businesses often report their gross income quarterly.
A business’s net income or profit is the difference between its gross income and expenses.
Gross income also referred to as sales revenue, is the amount of money that a business makes before deducting any expenses.
What is the difference between gross income and net income?
Gross income is the total revenue a company earns before subtracting expenses. Net income is the total revenue after subtracting expenses.
Gross and net revenue are not the same. Gross income is the total amount earned from income before taxes are subtracted. Net income is the amount earned after all expenses are subtracted.
Gross income is the total number of dollars a company earns, regardless of taxes paid. Net income is the amount that an individual or company earns after all taxes have been paid.