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WHAT IS BOTTOMLINE AND WHAT IS TOPLINE?
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Answer Posted / zoeb lobo
Top line is corporate net sales, that is, total
revenue/income generated by a business.
Bottom line is the profit/loss number, after all
expenditures/liabilities have been discounted from net
sales.
Both of these terms come from the accounting document known
as the income statement, or Profit/Loss account. Top line
is the first line of that document, and bottom line is the
last line in that document.
When companies talk about the need to increase their top
line, they are talking about the need to focus on
generatins/increasing sales. Bottom Line efforts are
usually aimed toward cost reduction to increase the margin
and therefore increase the result.
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