Earnings represent the financial gain a company achieves after deducting all operating and non-operating expenses from its total revenue. In other words, earnings measure the profitability of a business over a specific period. It is a key metric used by financial analysts and investors to assess a company's performance and financial health. Earnings can be presented as net income on the income statement, which is used to calculate other financial measures such as the earnings per share (EPS). \n\nFor example, if a company reports revenue of $1,000,000 and expenses of $800,000, its earnings for that period would be $200,000. Referring to earnings is crucial during the month-end close processes, as a detailed reconciliation and analysis of income and expenses ensure accurate reporting. Furthermore, consistent earnings growth is often an indicator of a company's operational efficiency and market strength.