The total money a business brings in before subtracting any expenses, taxes, or costs.
Gross income is everything your business takes in before you subtract a single expense. If you invoiced $120,000 this year, that’s your gross income — regardless of what you spent on software, subcontractors, or taxes to earn it.
For sellers, gross income is a vanity number if you read it alone. Two freelancers can both gross $120,000; the one with $20,000 in business expenses and the one with $70,000 keep very different amounts. What matters for your life is net income — what’s left after costs. For buyers, this rarely comes up, but it’s worth knowing that a pro’s rate has to cover far more than take-home pay.
Where gross income does matter: it’s often the figure lenders, landlords, and some tax calculations start from, and it’s the top line of your profit and loss statement. Track it, but never mistake it for money you can spend. If you’re getting a handle on your numbers, start with our guide on tracking your numbers.