InvoiceBerry Tips for for Freelancers & Small Businesses 9 Most Important Financial Numbers Explained | Page 5

2. Net Income
Also known as net profit or net earnings, your net income is very
much related to your cash flow. This is a good indicator of how
your business is doing, as it will help determine if you need to
adjust your business, or if you are on the right path.
Your income – expenses (including taxes) = net income
Knowing this number will help you determine the financial
position of your business.