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what is the proper term?

bobbygedd

LawnSite Fanatic
Location
NJ
ok, what is the proper term for this: when i cut 50 lawns a week, at $30 each, i GROSSED $1500. now, at the end of that week, i write myself a paycheck(or as my accountant says, a "draw") ok, so i write myself a check for $600. it hasnt had any deductions taken out. so, is that $600 considered my GROSS? as far as my pay is concerned? is the same term "GROSS" for both of these? ok, i'm makin myself dizzy, do you know what i'm trying to ask?
 
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bobbygedd

LawnSite Fanatic
Location
NJ
ok, so then, let's just say, for instance if i wanted to brag, but still tell the truth. if someone asked, "hey you pee on lawn boy, how much you make last year?" i would say like, "well sir, my company grossed $80,000. and i grossed $60,000. and........by the way, while you were working, i was wearin your robe and slippers, smokin your pipe, and your wife was frying me some ham and eggs. " got it guys, thank you
 
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bobbygedd

LawnSite Fanatic
Location
NJ
taxes on it twice? how so?
 

DUSTYCEDAR

LawnSite Fanatic
Location
PA
depending on how u have your company set up u could be hit twice with taxes 1 as the company gross income then 2nd as income to yourself
 

Let it Grow

LawnSite Senior Member
Location
Walla Walla, WA
That money would be your personal income. I'm assuming that your business is set up as a sole proprietorship.
If that is true then any money that you, the owner, takes out of the business is called an owners draw, which is basically your salary. That is not the same as your gross income from your business. Gross income is the amount that your business received for sales & services (also called gross receipts). Your net income is basically just your gross income less business expenses. This is the "formula":

Gross Income-Business Expenses=Net Income

When someone asks "what did you gross last year" they are wanting to know how much sales or services your business did. But that number is not actually that helpful when you want to know how much you actually made in profit (your Net Income).

I hope this helps.
 
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