Business income and expenses are the essential building blocks of any successful business. Income is the money or other value flowing into a business from sales, investments, or other activities; while expenses are money or value spent by a business on goods and services, payroll, taxes and other costs associated with running a business. These two items are often intermingled when recording the financials of a company, but it’s important to recognize them separately in order to effectively manage cash flow and tax liabilities. Achieving success as an entrepreneur means understanding this dynamic relationship between income and expenses–and taking action to make sure your finances are always in order!