Net income
Revenue minus every cost and expense. Rolls into retained earnings at year end.
In Solo Superstars
The last line of the Income statement. A negative number is a net loss. Owner draws are not an expense, so net income can be positive while your bank balance fell.
Example
Gross profit 12,400 − operating expenses 8,900 − other 20 = net income 3,480.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- profit
- bottom line
- net profit
Related
- Income statement — Revenue, costs and expenses over a period, ending in net income. The report that says whether you made money.
- Retained earnings — Profit the business has kept over the years rather than paid out. Each year-end close moves net income here.
- Year-end close — Closing the fiscal year: zeroing revenue and expense accounts into retained earnings, rolling owner draws into equity, and locking the year.
- Gross profit — Revenue minus cost of goods sold. What is left to cover everything else.