what is net loss 
a net loss is when total expenses including taxes fees interest and depreciation exceed the income or revenue produced for a given period of time a net loss may be contrasted with a net profit also known as after tax income or net income understanding net lossfor a business net loss is sometimes referred to as a net operating loss nol for tax purposes net losses may be carried forward into future tax years to offset gains or profits in those years a net loss appears on the company s bottom line or income statement net loss or net profit is calculated using the following formula net loss or net profit revenues expensesbecause revenues and expenses are matched during a set time a net loss is an example of the matching principle which is an integral part of the accrual accounting method expenses related to income earned during a set time are included in or matched to that period regardless of when the expenses are paid 