Accrual Basis Net Income Formula is the method used by businesses to calculate the total revenue earned during a certain period, less any expenses incurred from that same period. It’s an important tool for financial analysis, as it allows companies to determine their financial health and performance over time. The formula takes into account all forms of revenue, including income from investments, services performed, and goods sold, as well as all associated costs (like labor and product costs). Accrual Basis Net Income Formula can give you an accurate picture of your business’s profitability so you can make informed decisions about how to move forward.