Income Vs Revenue Vs Profit

Revenue is the money your business makes from different activities for example selling goods or delivering services.

Income vs revenue vs profit. Revenue is the top line of the income statement whereas the profit is the bottom line. Profit is the amount left positive post deduction of all kinds of costs expenses taxes etc. Your management department may make decisions on whether to continue selling a product based on the gross margin of the good. However profit may not necessarily accrue.

Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. Revenue is the gross amount i e. Total revenue is interdependent of profit and will exist since it is the reason for a business being established. Profit is what is left over after you ve paid all of your expenses and bills.

Although net revenue and gross margin are useful internal figures external parties care most about net income. Without any deductions while profit and income are derived after deductions of expenses and taxes. Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. While revenue and profit both refer to money a company earns.

The key difference between revenue and profit is that revenue refers to the income generated by any business entity by selling their goods or by providing their services in an accounting period during the normal course of its operations whereas profit refers to the amount realized by the company after deducting the expenses from the total amount of revenue. In short we can say profit is the revenue which is left after deducting the expenses. The words revenue and profit are generally used synonymously but they represent different things on your company s income statement. So while revenue shows the total amount of money coming in income shows the total amount coming in and out.

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. 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. From the income or revenue.