What is income

Income is the financial return earned through various means, encompassing sales, wages, profits, and interest. It serves as the lifeblood for both businesses and individuals, playing a critical role in sustaining financial stability.

We divide it into income for businesses and income for individuals.

Income for businesses

Income for companies mainly comes from the sale of goods and services. They can also earn profits from stocks or interest earned from bank deposits. A holding company for example get their income from shares and interest.

The calculation of income is intricately tied to invoicing, where the invoice date becomes the reference point. Notably, the date of income and the date of payment may not always align, leading to a need for income allocation.

Income for individuals

For individuals income usually comes from a job done. Employees receive a pay check each month with a compensation for their work. Individuals can also have income from interest and shares.