Revenue Net Income Difference

Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations.

Revenue net income difference. Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. The difference between your gross revenue and your net revenue indicates how well your marketing and sales methods are working. Revenue also called sales or turnover is simply the total amount of money received by a company from its business operations sale of goods or services whereas net income also called net profit is the amount of money left after all expenses such as cost of goods sold operating expenses loan interests depreciation tax one time fees are deducted from the revenue. Every publicly traded company has to file an income statement in addition to the balance sheet and cash flow statement that shows the company s revenues and expenses for a particular time period.

Revenue refers to the sum of money which the company generates from doing the business in the normal course of operations from its customers whereas net income refers to the income earned by the company or the income left over in the company after deducting all the expenses of the period from the net revenue. You d have a net revenue of 70 000. Revenue can be found at the top of the income statement which is one of the three primary financial statements of a business whereas net income is located at the bottom of the income statement. After subtracting the cost o.

Revenue is the money flowing in to your business whereas net income it was is left after paying the expenses of the business. Many investors also report their income and the difference between net and gross revenue for a small business can have significant income tax repercussions if handled incorrectly. In this case the large discount might indicate that you initially priced the products too high. So while revenue shows the total amount of money coming in income shows the total amount coming in and out.

Differences between revenue and net income. Revenue comes in the form of sales of product or services or other business income sources. Let s quickly dive deeper into these two terms before we get started. For a business income refers to net profit i e.

What is the difference between revenue income and gain. What is net income. What remains after expenses and taxes are subtracted from revenue revenue is the total amount of money the business receives from its customers for its products and services. Revenue is the amount earned from a company s main operating activities such as a retailer selling merchandise or a law firm providing legal services.

For individuals however income generally refers to the total wages salaries tips rents interest or dividend received for a specific time period.