Net profit
What remains from revenue after all costs, overheads and expenses — the business's bottom line.
What it means
Net profit is what is left from your revenue once every cost has been deducted — direct costs, overheads, interest and (depending on how it is reported) tax. It is the bottom line of the profit and loss statement and the clearest single measure of whether the business made money over a period.
Net profit is an accounting result, not the same as cash in the bank.
Profit versus cash
A business can report a healthy net profit yet run short of cash if customers pay slowly or debts go unpaid. Profit recognises sales when earned; cash depends on collection. Bad debts directly reduce net profit, so chasing receivables protects the bottom line. See cash flow for the cash side, and note that tax on profit is a matter for the ATO or your accountant.
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