It’s been awhile since I’ve taken an accounting class. For a small sole-proprietorship (In Canada, if that makes a difference) is Net Income basically the same as the owner’s salary? And if so does he have to pay income tax on that or has that already been deducted?
Net income for the business is the money that’s left over after all expenses are paid. Usually the owner’s salary is considered an expense. Thus you pay income tax on the money paid to the owner as salary, and you pay some sort of business tax on the money left over after you pay the salary and other expenses.
RealityChuck got it, but to clarify, net would be the after tax income for either the individual or the business.