Accounting Net Income Formula is the equation used to calculate a company’s total net income, which equals total revenue minus total expenses. It is arguably one of the most important equations in business, as it provides a snapshot of a company’s profitability. The formula is often represented as “Net Income = Revenues – Expenses” and can also be written as: Net Income = Total Revenue – (Costs + Expenses). By using the Accounting Net Income Formula, companies can begin to track their profits to determine when they are making money and when they are losing money. Knowing this information is essential for strategic decision-making and long-term growth.