Net income formula accounting is the process of determining a business’s overall financial performance. It’s done by taking a company’s total profits, subtracting any expenses and taxes, and then dividing it by the number of outstanding shares. This calculation helps determine how much money has been made or lost over a certain period of time. By tracking net income over time, businesses can make sound decisions about where to invest in the future and how to manage costs effectively. The net income formula is essential for any business looking to grow and optimize their profits.