Enterprise glossary and term center
Research and understand all the intricate terms and definitions that surround the ecosystem of enterprise resource planning (ERP), enterprise software and no-code tools.
- Enterprise terms
- Retained Earnings
- What is the difference between net income and retained earnings?
Retained Earnings - What is the difference between net income and retained earnings?
Net income is often called the bottom line since it sits at the bottom of the income statement and provides detail on a company's earnings after all expenses have been paid. Any net income that is not paid out to shareholders at the end of a reporting period becomes retained earnings.