Business income and expense is the difference between the money that a business earns and the money that it spends over a given period of time. Income is the total amount of money earned by a business during a specific period, usually from sales of goods or services. Expenses are the total amount of money spent by a business during a specific period, generally on costs associated with producing goods or services. The total net business income and expense can be determined by subtracting expenses from income. By understanding the overall financial performance of a business, management can make informed decisions on how to manage costs and generate profits.