Xero
Income The Income metric reflects the total revenue generated by a business during a specific period, including sales, services, and other sources of income.
With Databox you can track all your metrics from various data sources in one place.
Income is the total amount of money a business generates through its core operations and activities during a specific time frame.
It’s the money an organization makes from the sale of goods, provision of services, royalties, dividends, or any other business activities.
There are two types of income – gross income and net income.
Depending on which one you want to calculate, we need to use different formulas.
Gross income refers to the total revenue a business earns before deducting any expenses or taxes. It’s the initial inflow of funds generated solely from the primary business activities.
The formula for gross income is straightforward:
Gross Income = Total Revenue
Net income, on the other hand, is the residual amount that the business has after deducting all expenses, from the total revenue.
The formula for net income is:
Net Income = Total Revenue – Total Expenses
Here’s an example – let’s say that a company generated this revenue during a year:
When we sum these up, the total revenue amounts to $165,000, which is also the company’s gross profit.
Now, let’s say that it had these expenses during that same year:
The total expenses amount is $107,000.
Using the formula above, we find that the net income is $58,000.
As the lifeblood of modern business, increasing your company’s income is a primary goal.
After all, you can only further fuel expansion, invest in innovation, establish healthy growth, and improve overall financial performance by generating more money.
Now, while there are dozens of effective strategies businesses can use to boost their income, we compiled a list of tips that hundreds of leading industry experts we surveyed frequently use.
These strategies include:
More resources to help you improve:
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Databox is a business analytics software that allows you to track and visualize your most important metrics from any data source in one centralized platform.
To track Income using Databox, follow these steps:
Goals
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Metric Digest
Metric Builder
Data Calculations
Performance ScreenXero’s dashboard template provides you with insights about cash flow, bank accounts, sales and expenses entered in Xero to stay on top of your business.
This report gives a snapshot of financial results using Xero data on income, expenses, cash flow, balance sheet, and overall financials, supporting informed financial decisions.
Gross income is the total income a business earns, before subtracting any expenses, taxes, or other deductions. It’s the total amount of money you make from the primary business activities.
Annual income is the total amount of money a business earns over the course of one year.
Net income is the remaining amount of money a business earns after deducting all expenses, taxes, and other deductions from its total revenue.
QuickBooks
Net Income (Cash) is the total profit earned by a business after deducting all expenses that have been paid in cash.
QuickBooks
Income (Cash) is a financial metric that measures the amount of actual cash received by a business during a specific period from sales, services, or other sources. It does not include non-cash revenues or expenses.
QuickBooks
Gross Profit (Cash) is a financial metric that calculates the amount of money a business earns after deducting the cost of goods sold. It represents the profit a company generates from its core business operations before factoring in other expenses.
Xero
Total Income is the sum of all revenue earned by a business during a defined period of time, including sales, services, and other sources of income.
Xero
Net profit is the amount of revenue a business earns after deducting all expenses, including taxes and interest. It reflects a company's overall profitability and is a key measure of financial success.
Xero
The Opening Balance by Bank Account metric in Xero is a report that displays the balance of each bank account at the beginning of a specified financial period. It provides a snapshot of the account balances before any transactions for the selected period have been entered into Xero.
Xero
The Cash Spent by Bank Account metric shows the total amount of cash that has been spent or paid out from a specific bank account within a certain period of time.
Xero
Current Assets by Asset is a financial metric that measures a company's short-term liquidity and cash flow by comparing its current assets to the total value of its assets. It helps assess the ability of a company to meet its short-term financial obligations.
