Net profit
Net profit is the result of the income statement after deducting all expenses including depreciation, interest and taxes; it is the figure whose use the general meeting decides on.
Definition
It is at once the basis for profit tax and the basis for the appropriation of profit: allocation to reserves, distribution as a dividend, carry-forward. The order of these steps is set by law.
Because it is calculated after tax and tax depends on the profit, the tax provision is a small iteration at year end. Programs with a closing assistant calculate it; the others leave it to the fiduciary.
Where to read it
What the software must be able to do
The check is whether the software can calculate the tax provision and whether the appropriation of profit can be represented as entries. In simple programs the income statement stops at profit before tax.
Checked Aug 2026
More terms under Bookkeeping and retention: Accrual principle Accrued liabilities Annual accounts Association accounting Balance sheet Balance sheet total Book value Break-even point Business assets Business expenses Cash book Cash flow statement Cash receipts Contribution margin Cost centre Current assets Debit and credit Depreciation Double-entry bookkeeping Duty to keep accounts EBIT EBITDA Equity Equity ratio Financial year Fixed assets Fixed costs Foreign currency General ledger Gross profit Hidden reserves Income statement Inventory count Journal Journal entry Liabilities Liquidity Loss carry-forward Membership dues Opening balance sheet Overheads Pass-through item Prepaid expenses Provision Record-keeping ordinance Reserves Retained profit Simple accounts Swiss SME chart of accounts Tamper resistance Turnover Value adjustment Variable costs Volunteer-run structure Voucher Year-end closing modules