Net Income Definition

Net income is the difference between gross income and expenses. It shows your business’s total profits.

Net Income Extended Definition

You can find net income by subtracting expenses from your company’s gross revenue or gross income. The number can be either positive or negative.

Net income can be helpful in decision-making, such as determining cash flow and profits, and helps to present an accurate financial picture.

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Last Updated By

Rachel Blakely-Gray | Jun 09, 2023

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