Net income accounting is a type of accounting method used to measure the financial performance of a business in terms of its net income or profit. It involves subtracting all the expenses and costs associated with running the business from its total revenue for the period being measured. This gives the company an indication of how profitable it is overall and can be used to plan budgets, set goals, and make decisions about future investments and operations. Net income accounting provides valuable insight into a business’s profitability by taking into account taxes, capital gains, and other related costs and is essential for getting a clear picture of the company’s bottom line.