The Income and Expenses metric displays the amount of money earned and spent by a business over a 12 month period. This key accounting metric can help business owners, bookkeepers, and accountants track the monthly earnings and spend of a business. The income and expense metric will also help determine whether or not a company's profit is consistent month over month.
- Income: The amount of money received by the business
- Expense: The cost required for running the business
- Profit: The amount of money the business makes after deducted expenses from income
- Having more income than expenses, meaning a profit for the business
- Keeping expenses lower than overall income
Monitoring Financial KPIs on a Dashboard
Once you have established benchmarks and targets for your Income and Expenses, you’ll want to establish processes for monitoring this and other Financial KPIs. Dashboards can be critical in this regard. Read more