Your net profit, also referred to as net income, is the income left over after subtracting all business expenses like depreciation, payroll, utilities, rent, and income taxes from the total revenue. You’ll hear people refer to net income as the bottom line because you can find the number at the bottom of an income statement.
It’s an important metric for startups because it lets you know if you’re turning a profit. Investors will want to know your net profit and see if you have grown over time.
Net profit portrays a company’s overall financial health and is best when it remains high.