What is the difference between bottom-line and top-line growth, by small business accountants in Melbourne
Our small business accountants in Melbourne, will explain the key differences between bottom-line and top-line growth in businesses.
A company’s bottom line is its net income, or the bottom figure on an income statement. More specifically, a company’s bottom line is their income after all expenses have been deducted from their revenues. A company’s bottom line can also be referred to as net earnings or net profits.
On the other hand, the top line refers to a business’ gross sales or revenues. Any reference to a company’s top line growth is in regards to an increase in gross sales or revenue.
Both these figures are useful in determining the financial strength of a business. If your small business needs help determining this, our small business accounting services in Melbourne are just one call away.
Feel free to contact our small business accountants in Melbourne, with regards to any of your accounting needs.