What is Gross Income?
Gross income is the amount of money a business, employee, or contractor earns over a certain period. It is typically measured over a year, but businesses often report their gross income quarterly.
Gross income is a helpful tool to gauge a company’s profitability and can give a more complete picture of its basic financial performance. It is sometimes included in a company’s income statement but isn’t required. Gross income is sometimes referred to as gross margin.
What is the difference between revenue and gross income?
Revenue (sometimes called sales) is the total amount of money a company receives from selling its goods or services. No other factors or deductions are taken into account. To determine gross income, subtract the cost of goods sold from sales revenue.
