Community and Government
Gross Income vs. Net Income: Understanding the Difference Between Gross Income and Net Income and How Each Affects Your Business
Written by MasterClass
Last updated: Oct 12, 2022 • 3 min read
As a business owner, keeping track of your annual profits is incredibly important to projecting the overall health of your company. Two concepts that affect your overall profit are gross income and net income.
Gross and net income are very similar concepts, but understanding the difference between them is very important for both businesses and individuals.