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QuickBooks Net Income (Cash)

Net Income (Cash) is the total profit earned by a business after deducting all expenses that have been paid in cash.

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  • Tech details

What Is Net Income

Net income is a financial metric that represents the amount of money a company earns after it deducts all expenses and taxes from its total revenue.
It’s a key indicator for investors, shareholders, and analysts evaluating a business’s profitability and financial health, and it’s usually reported on the company income statement.

How to Calculate Net Income

You can calculate net income by subtracting operating expenses, interest expenses, depreciation, taxes, and any other relevant costs from the company’s total revenue.

The formula for calculating net income is as follows:

Net Income = Total Revenue – Total Expenses

Let’s say a company generated $500,000 in revenue during a particular year. The company had the following expenses:

  • Cost of Goods Sold (COGS): $200,000
  • Operating Expenses: $100,000
  • Interest Expenses: $20,000
  • Depreciation: $30,000
  • Taxes: $50,000

Using the formula above, we can calculate that the company’s net income for the year amounts to $100,000.

What Is a Good Net Income Margin

When assessing your net income, you need to consider factors such as your specific business model, historical numbers, industry, economic situation, and competitive landscape.

All of these factors influence your net income and put more context into what a “good” margin is.

For example, industries like manufacturing and retail tend to have profit margins on the lower side of the spectrum due to high competition and thin margins. In these industries, a good net income margin might be around 3% to 5%.

At the same time, a software company might consider anything below 20% as a low net income margin.

This is because the software industry often sees lower production costs and better scalability.

In general, many industries consider 10% a healthy margin. But don’t take this information for granted without assessing the key factors that influence it.

How to Increase Net Income

Increasing an organization’s net income is a never-ending process and there are always new strategies and methods to experiment with.

And if you’ve already tried some of the general approaches, we prepared a few top strategies that the leading experts we talked to over the years suggest:

  • Make sure key representatives of each department understand the numbers: While you might tailor your financial reports to the C-level executives and shareholders, make sure that the representatives of other departments can understand them as well. Sales, marketing, and all these other departments should have an idea of what ROI they’re seeing and whether they need to optimize their processes for the next quarter.
  • Take advantage of a cloud system: For better-organized collaboration and more fluid data input and storage, you should take advantage of a cloud system. If you have multiple team members authorized to make expenses, it’s important that others have access to those expenses as they occur. This way, you’ll have more control over your overall costs and it will be easier to spot opportunities to minimize them and boost your income.

More resources to help you improve:

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How to track Net Income (Cash) in Databox?

Databox is a business analytics software that allows you to track and visualize your most important metrics from any data source in one centralized platform.

To track Net Income (Cash) using Databox, follow these steps:

  1. 1
    Connect QuickBooks that contains the metric you want to track
  2. 2
    Select the metric you want to track from the list of available metrics
  3. 3
    Drag and drop the selected metric onto your dashboard
  4. 4
    Watch your dashboard populate in seconds
  5. 5
    Put Net Income (Cash) on the Performance screen
  6. 6
    Get Net Income (Cash) performance daily with Scorecards or as a weekly digest
  7. 7
    Set Goals to track and improve performance of Net Income (Cash)
QuickBooks integration with Databox Track Net Income (Cash) from QuickBooks in Databox GET STARTED

QuickBooks Net Income (Cash) included in Dashboard Templates 1

  • Live view

    QuickBooks Financials Overview

    Get a financial snapshot with our "Financial Overview Dashboard." Tailored for decision-makers, it offers real-time insights into revenue, expenses, and profitability. Drive financial success effortlessly.

    QuickBooks

Basics

  • Description
    Net Income (Cash) is the total profit earned by a business after deducting all expenses that have been paid in cash.
  • Category
    Accounting
  • Subcategory
    Income
  • Date Added
    2016-05-20
  • Default Format
    PrefixCurrency
  • Cumulative Support
    Yes
  • Units
    Yes
  • Granularities
    daily, weekly, monthly, yearly, quarterly, allTime
  • Favorable Trend
    increasing
  • Historical Data
    Yes
  • Changing historical data
    Yes
  • Forecast Support
    Yes
  • Benchmark Support
    Yes
  • Media Support
    No
  • Dimension
    N/A
  • Metric Type
    general Learn more
  • API Endpoint
    https://quickbooks.api.intuit.com/v3/company/{realmId}/reports/ProfitAndLoss

Questions? We've got answers.

  • What is the difference between gross vs. net income?

    Gross income is the total income a company generates before it makes any expense deductions.
    Net income, on the other hand, is the amount that remains after these expenses and costs have been subtracted from the gross income.

  • What is annual net income?

    The annual net income is simply the total earnings a company generates after deducting expenses over a specific period of one year.

  • Is net income and profit the same?

    Yes, net income and profit are often used synonymously as they refer to the same concept in the context of a company’s financial performance.
    Both terms represent the amount of money that remains after deducting all expenses and taxes from the total revenue generated by the company.

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