Income Vs Profit Vs Revenue

Net income also known as net.

Income vs profit vs revenue. Total revenue is interdependent of profit and will exist since it is the reason for a business being established. This number is calculated by tallying every penny that came into the company during a given period. Revenue is divided into operating and non operating revenue profit is classified as gross and net profit and income can be classified as earned and unearned income. Let s quickly dive deeper into these two terms before we get started.

Income is commonly referred to as gross revenue on the other hand profit is the amount that is left over after the expenses have been paid. While revenue includes the gross earning from primary operations without any deductions profit is the resultant income after accounting for expenses expenditures taxes and additional income and costs in the revenue. Profit simply means the revenue that remains after expenses. Revenue is the top line of the income statement whereas the profit is the bottom line.

The money earned in any business post sells of products or services for a particular time period. Profit is the bottom line or net income after accounting for all expenses debts and operating costs. Income is the top line revenue. Basis of comparison between profit vs income.

If you re self employed your net income is your professional income the money you make for providing professional services minus your deductible expenses. Without any deductions while profit and income are derived after deductions of expenses and taxes. If you have a small businesses net income is your business income the revenue for selling products or services minus your deductible expenses. Revenue is the total income generated by a business from the sale of goods services whereas profit is the surplus which remains after deducting all expenses and taxes associated.

Total cash inflow of revenue during a period of time. So while revenue shows the total amount of money coming in income shows the total amount coming in and out. The amount left post deduction of expenses overheads taxes or any interest from the total income of the business. Revenue is the total amount of income generated by a company.

Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. Revenue is the gross amount i e. It exists on several levels depending on what types of costs are deducted from revenue.