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Gross Income

Gross income is the amount of money a business, employee, or contractor earns over a certain period of time. It is typically measured over a year, but businesses often report their gross income quarterly. 
 
For a company, gross income is the revenue from all sources minus the cost of goods sold (COGS). It does not include the other costs involved in running the business, like payroll, office space, equipment, marketing, and advertising, etc. Gross income reveals how much money a business has made on products/services after subtracting the direct costs in manufacturing the product or providing the service. 
 
Gross income is a helpful tool to gauge a company’s profitability, and can give a more complete picture of its basic financial performance. It is sometimes included in a company’s income statement, but isn’t required. Gross income is sometimes referred to as gross margin.
 
Gross income for an individual, also called gross pay, consists of wages, salary, and other forms of income like tips, rental income, capital gains, pension, and interest income. It is the money the individual earns before deductions and withholding, and is also typically calculated on a yearly basis. Gross income is the starting amount used for income taxes, before adjusting for deductions, tax credits, etc.