Einnahmen

Einnahmen is a German term meaning money received by an individual or a business during a specific period. In everyday language it is commonly translated as “income” or “revenue.” In accounting and taxation, it denotes all cash inflows that an entity receives within a reporting period, before deductions such as costs, taxes, or other expenses.

In accounting, Einnahmen are distinct from expenses (Ausgaben). In the popular Einnahmen-Überschuss-Rechnung (EÜR) used by small businesses and sole proprietors, the profit is calculated as the difference between Einnahmen and Ausgaben for the period. This cash-based method contrasts with larger enterprises that use accrual accounting.

Examples of Einnahmen include wages and salaries for employees; rental income; revenues from self-employment or freelance work, commissions; interest or dividend income; subsidies or refunds; and other cash receipts. The term is broader than just sales and can cover various sources of cash inflow.

Tax and policy use: In German tax law, Einkünfte are the categories of income for computing income tax, while Einnahmen is a broader term referring to cash inflows. For individuals, Einnahmen include salary, pensions and other receipts; for businesses, they primarily comprise sales and service receipts.

The precise meaning of Einnahmen varies by context; in accounting it refers to the inflow of cash within the period, while in everyday language it can refer to total income more generally. The term is commonly contrasted with outputs such as Ausgaben (expenses) and Gewinn (profit).