Business & Accounting
Net Income
Definition
The total profit of a business after all expenses, taxes, and costs have been subtracted from total revenue. Also called the "bottom line" because it appears at the bottom of the income statement. Net income is the most comprehensive measure of business profitability. For freelancers, net income is the amount reported on Schedule C of their tax return and is subject to both income tax and self-employment tax. Tracking net income monthly reveals trends in business profitability over time.
Related Templates
These SheetCraft templates use or relate to Net Income:
- Freelancer Financial Hub, All-in-one financial management for freelancers, income tracking, expense categorization, quarterly tax estimates, and client profitability.
- Small Business Bookkeeping System, Simple bookkeeping for small business owners who don't have an accountant, income, expenses, P&L, sales tax, and bank reconciliation.