Balance sheet net income is a calculation used to assess a company’s financial health and overall profitability. It takes into account the revenue a business has earned, accounts receivable, and any other income sources, and subtracts out fixed costs such as payroll, taxes, rent, and debt payments. The resulting total is the company’s net income—a single number that provides an important snapshot of how your business is performing. By understanding this figure, you can make informed decisions about pricing, expenses, investments, and more.