Calculating net income is an important part of running a business. Net income, or net profit, is the amount of money a business earns after all expenses and taxes have been paid. It is calculated by subtracting total expenses from total revenues. This number is then used to assess the financial health of the company and make decisions about investments, salaries, and other spending. In order for a company to be successful, it needs to make sure that its net income is healthy and steadily increasing year-over-year.