net income plus operating expenses. The reason I like to break this down is because it is easy to overstate the importance of the numbers. It isn’t as important as it was in the past but it does help to keep a sense of perspective.
For instance, in one of our recent surveys, we asked, “How much money do you make per year?” We came up with an average of $35,000, and that was in 2008. In 2010 we came back up with an average net income of only $26,000. So there is a lot that is important to remember here.
This is an important number to keep in your mind. I remember when net income was a big deal because it was a large number that people kept track of and talked about it in the press. But it’s important to realize that even though net income is an important number to keep track of, it isnt as important as operating expenses. And the reason is because operating expenses for any business are what keep it running.
The numbers are not a good indication of how much net income you can take from your employees. So you need to understand the numbers to be able to figure out how much you can take in a business’s net income.
Net income is the amount you make after taxes. Operating expenses are what keep a business running. So to keep your business profitable you need to take in a number of operating expenses each month. They keep the business running so you don’t have to pay taxes on your income. So, net income plus operating expenses is the amount people keep track of and talk about.
For example, the CEO of a small business keeps track of the revenue, profit, and expenses. The owner of the business keeps track of his net income and expenses. The people who work for him can’t see or talk about the numbers because they don’t know about the numbers. He keeps track of his income and expenses because he wants to know how much money he gets each month.
The reason the CEO keeps track of his income and expenses is that he wants to know how much the company is actually making. He wants to know what the company is actually doing, not just how much the company is making right now.
The reason the CEO keeps track of his income and expenses is because he wants to know how much of his income is actually being spent on the company. He wants to know what the company is actually spending money on. He wants to know what he actually has to pay his employees.
Net income, in business terms, is the amount of money the company is actually making. Operating expenses, on the other hand, are the expenses that the company is actually spending money on. The problem with operating expenses is that they are an accounting term, and they aren’t particularly transparent.