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.