Net Income on Accrual Basis is the total amount of revenues a business has earned during an accounting period, minus all its expenses from that same period. It is also known as “net profit” or “net earnings”. This differs from Cash Basis accounting because it takes into account any revenues and expenses which occur before money changes hands. Net Income on Accrual Basis is important for businesses to properly account for their current financial performance since cash flow may not reflect their true profits. In simple terms: it’s all about the bottom line!