Net income in accounting is the total amount of profit that a business has earned after accounting for all expenses. It is calculated by taking the revenue of a business, subtracting all its expenses, including operating costs, taxes and any other losses incurred over the period. Net income can be used to measure a company’s overall financial health and performance in relation to other businesses in its industry. Net income is an essential metric for accounting, because it determines how much money is left over to pay dividends to shareholders or reinvest back into the business.