Accounting Net Income is the total amount of profit that a business has made for a given accounting period, after deducting all expenses, including costs related to operating the business as well as taxes and other expenses associated with running a business. The equation for calculating net income is: Revenue – Expenses = Net Income. This is an important measure of a company’s performance, as it gives a clear indication of the amount of revenue generated relative to the expenses incurred during the same time period. Accounting net income can also be used to make informed financial decisions when evaluating a company’s performance or potential.