Net Income of a company is the amount a business earns after all expenses, including operating costs and taxes, are deducted from its total revenue. It is an important metric that shows how profitable a business is over time and is often referred to as the “bottom line”. Net income is calculated by subtracting total expenses from total revenues. To have a better understanding of the net income of your business, it’s important to closely monitor all revenue, cost and expense items. Doing so will ensure you can keep track of your progress and make necessary adjustments when required.