Business income (loss) definition

Business income and loss are accounting and tax terms for business profit and loss. Either may be achieved in the conduct of operating a business.

In simplest terms, income (profit) results when the business operation produces a positive number on the bottom line of the profit & loss statement. Conversely, business losses result when the number is negative.

How you treat income and loss will depend on your accounting method and business structure.

Consult your accounting and tax advisors for your own circumstances.