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Key Differences Between Net Income and Net Profit
1. The income arose after deducting preference dividend from net profit is the Net Income. The pure profit earned by a company in a particular accounting year is known as Net Profit.
2. Net Income is used to calculate earnings per share for equity shareholders while the Net Profit is used to show the profitability position of the company.
Profit simply means revenue that remains after expenses. While net profit is synonymous with net income, corporate accountants calculate profit at a number of levels. For example, gross profit is revenue less the cost of goods sold, or COGS. Operating profit refers to revenue less COGS and operating expenses
Net Profit After Taxes. ... It is the sum of all revenues less all expenses, including cost of goods sold and all taxes. While it is almost the same as net income, this terminology frequently appears on the company's financial statements in order to differentiate between profits before and after subtracting taxes.
Net profit is with some provisions to be paid in future ,net income is after all expenses,may be physical profit in small concerns. Net income is after meetingout all expenses.
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