To be in the black vs. to be in the red, that is the question. These phrases are common in Business English, and despite black usually having a negative connotation, it is positive in this example. “To be in the black” means for a company to be making profit, to have money in its account in other words, where “to be in the red” means the contrary–to have a negative balance in its account and owe the bank. Both terms can apply to a person, a company or an account.
- XYZ company is finally in the black and seems to be recovering financially!
- ABC company on the other hand is in the red and continues to lose clients, unfortunately.
These terms come from the days of manual accounting, where a ledger was used to manually keep track of funds. A positive flow of money was reported in black ink, and an expense was reported in red ink. The way I wrote that makes it sound like a historic practice which it isn’t, but let’s face it, technology has replaced and changed many practices including how balance sheets and income statements are done. Just remember this: a company wants to be “in the black“, as they want to be making money!
This is the case for English, but be careful as the phrases do no translate directly into Spanish! “Estar en negro” or “trabajar en negro” means to work illegally, and translates instead to “working under the table in English,” which means avoiding taxes and earning in cash for example. It doesn’t refer to a foreigner working in a country illegally. “Estar en blanco” (literally, to be in the white) means to be working legally, to be paying taxes on wages and reporting income.
- Estoy trabajando en negro por ahora. I am working under the table for the moment.
- No extraño mi trabajo en blanco, porque gano mejor en negro. I don’t miss my registered/legal job, because I’m earning better under the table.
A little Business English for you folks, and my favorite Rolling Stones song with a fitting title: Paint it Black, but don’t be fooled by the name. The lyrics are clearly about someone who is likely “in the red” instead.