Net Income (also known as net profit or the bottom line) is a business’s total earnings after deducting all expenses, taxes, and other applicable costs. It is commonly expressed as a value on the company’s income statement and credited to the equity account. By definition, Net Income is always a debit entry – and because it affects the company’s overall wealth, it should be thoughtfully monitored in order to maximize returns and offset any losses. The importance of net income can’t be overstated, so make sure you’re calculating and recording it accurately!