There are many idioms in English. In this article, we will talk about the phrase “in the black,” an expression that has its origins in the accounting process.
If a person or institution is “in the black,” it means making a profit. We use this expression when talking about a person’s economic status or a company to indicate their financial situation is more than adequate and there’s money to spare in their bank accounts.
Now let’s see more details about this idiom. We will see details about its origin and a bit of history.
Also, we’ll check more in-depth information about its meaning. We’ll see how the phrase is used in business and personal life.
Our last sections will have some examples of how to use it in different settings.
Before we conclude, you will also see more related phrases. Now let’s begin.
The Origin Of The Phrase
In the twentieth century the phrase “In the black” appeared along with the phrase “in the red.” Both phrases come from accounting practices.
A Little Bit Of History
Accounting is the act of writing all the transactions done in a business. Those transactions could be sales, purchases, loans, and many others more.
Accounting is also the name of a department in charge of showing if the company earned money or lost money.
Before personal computers were affordable for everybody, accountants (the people working in accounting) needed to use physical books to record when money was earned or paid in a company.
All the details and numbers were registered by pen and paper to save the information for future reference, and colors were used.
In The Red
Red ink was used in accounting books to register when the company paid or lost money. The red color served as a visual sign to state something was not good.
In The Black
Black ink was used to write down the numbers when the company earned money. This color was used to contrast the red ink, and it was a visual sign to state when a company made a profit.
Every time the owners and investors wanted to know how the business was in debt or not, they would call for a financial meeting. The accountants were in charge of showing if the company was earning money or losing money. If the company was earning more money than it spent, the accountant would say the company is “in the black.”
Owners and investors always expected to have their companies “in the black.”
The phrase “in the black” became part of American slang. Whenever we want to express, someone has more money than they spend.
How People Use The Phrase
Either in casual or formal conversations, the phrase could be used to express similar meanings.
How It Is Used In Business
If your business is “in the black,” it means that money was received during the last economic cycle. There’s more money into its bank accounts than the regular expenses.
The black ink, in contrast to the red ink, which indicates loss, provides a perception of stability.
The main goal for every business is to be in the black. It does not only mean the company is making money or breaking even. The deeper meaning is also that everybody was responsible and worked as a team.
Being “in the black” provides any company peace of mind. It also gives a sense of success, not only to its directors but its shareholders.
Owners and investors feel comfortable adding more money to a company that is making a profit. And this for sure is a great way to attract new investors.
Additionally, if the company asks for a loan to make a big investment, the banks will feel confident. Most likely, the bank will offer a good interest rate.
The best moment for a company to expand is when they are “in the black.” Now they don’t have to worry about money problems.
During this period, a company can also release a new product. If the product works, they will increase their profits.
How It Is Used In Everyday Life
People’s finances can also be “in the black,” even though most of us don’t need an accountant to keep track of our expenses and incomes.
When people are organized with their finances and spend less money than they earn, we can say that person is “in the black.”
There are some other scenarios where a person is considered to be “in the black” for example:
- If you inherit money from a deceased relative.
- If your parents give you a monthly allowance even though you have a job to cover your expenses.
- If you decide to get a second job or side-hustle to earn some extra cash.
Commonly, the expression “in the black” is used when a person is spending money to improve their lifestyle.
If a person spends money buying nice clothes and accessories, one could say they are in the black.
One thing that could help anyone to be in the black is to track their incomes and expenses. This way you know how much money you spend.
Examples Of The Phrase In A Sentence
Here are some examples of this phrase used in sentences:
- Mom, you don’t have to worry about me. I don’t need your money; I’m still in the black.
- I have more income than expenditures; thus, I am in the black.
- I don’t think her father will file for bankruptcy; he’s always been in the black.
- We all have worked really hard to move this start-up in the black.
- She hoped that her business would be in the black after getting a few more confirmed clients.
- Once they started paying more attention to what was important to their consumers, they were back in the black.
- I don’t want to marry him until his finances are in the black.
- This company has managed to stay in the black without your presence.
- After a long period of failures, the company is finally on the black.
- Shareholders don’t care how much you worked. All they want is for us to be in the black.
Similar Phrases
There are some phrases that express similar meaning to the idiom “in the black”:
- At a profit
- Gainfully
- Making money
- Operating at a profit
- Profitable
- Profitably
- To not be in debt
- To be in a profitable condition
- To be making more (money) than spending
- To be solvent or have money
Opposite Phrases
The opposite of the phrase “in the black” will be “in the red.” Both phrases come from the same origin, and the last one means when a person or a company is:
- At a loss
- Bankrupt
- In arrears
- In debt
- In dire straits
- In the hole
- Insolvent
- Losing money
- Unprofitably
Some examples of the phrase “in the red” are:
- I can’t believe it; this is the company’s fourth year in a row being in the red.
- Bitcoin price was still solidly in the red by midday today.
- The unemployment trust fund was going to be in the red because of the pandemic.
- The company was already in the red to the extent of more than two million dollars.
- “I just finished processing month-end, and I am sad to say that sales are so far down that we are operating at a loss,” said Omar. “That’s terrible news,” replied his partner, “being in the red makes me very nervous.”
- Last year, I closed off in the red, but now my business is back in the black.
- Even if this product is a success in sales, we owe so much money that we’ll probably still be in the red.
- I don’t like being in the red, so I avoid borrowing money.
Other Phrases
Here are some other phrases that use the word “black” or a similar word but have a different meaning:
In black and white
We use the phrase “in black and white” when paper.
In the dark
This phrase means someone is not informed about an event or ignores something.
Put someone in a black book.
If you put someone in a black book, it means you decided to censor that person.
Back to black
This phrase means a person goes back to where they feel comfortable.
More English Idioms
Conclusion
In general, when we use the expression “In the black,” we describe the status of economic security. In finance, this expression is used when a company has more earnings than expenses.
This profit can be used to buy better equipment, improve work conditions, pay a part of its earnings to the investors, and so on.
This phrase is a common idiom you have probably heard before. “In the black” can also be used in our everyday lives. We can use it to talk about someone who is capable of living a certain luxurious lifestyle because they have all their basic needs covered.
Idioms help us to express ideas in a colorful way, do not hesitate to expand your vocabulary by using them.
Shawn Manaher is the founder and CEO of The Content Authority. He’s one part content manager, one part writing ninja organizer, and two parts leader of top content creators. You don’t even want to know what he calls pancakes.