What is business income: example and benefits

business income with examples and benefits
Business income is the profit generated each year over all expenses. Business profit is calculated by subtracting the total expenses from the total revenue of a business. For example: Total business income and total expenses, $100,000-$50,000 = $50,000.

Many call it the main income of a trader. Business income generally refers to the profit that is made after doing business. Which is calculated excluding all business expenses.

Remember, a businessman can spend this income on personal, family, social and business activities. Also business assets can be deposited in banks.

Because the income earned from the business is exclusive to an entrepreneur. The profit of this business he can invest in his business and spend on pleasure, entertainment.

How is it made?

Business income after deducting various expenses from gross income. For example: rent, salaries, taxes, production and transportation costs, utility bills, marketing and advertising costs, etc.

an example

Ways to generate business income

The example shown in the figure shows how to calculate the annual income of a business. This figure shows how to figure out business earnings through the total income and expenses of a business. So, watch carefully.


There are many benefits to making money in business. Some of the main benefits are mentioned below:

  • Expenses: By this you get rid of all the extra expenses and take the profit of the business.
  • Taxes: Taxes are payable for doing business within a country. That falls under your business expenses.
  • Wealth Growth: Business profits helps you grow wealth in your personal life and provides security for the future.
  • Business Expansion: Further business expansion can be done by earning business profit. Which allows to earn more money.
  • Influence and Respect: Increasing business wealth brings both influence and respect in society.

US income tax

America has a 21% corporate tax on business income. Business taxes influence compliance with the laws of the land, generate business profits and maintain business professionalism.


Business finance helps a businessman make financial and strategic decisions. Also helps in sustainable development and profitability for business.

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