Net Income And Revenue Difference

Net revenue is how much of the gross revenue is left over after deducting costs and losses and it s used to pay for business operations or the cost of production.

Net income and revenue difference. Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations. Net revenue is the third item on an income statement. Whereas the net income consists of only. What remains after expenses and taxes are subtracted from revenue.

The revenue is the superset of the net income. For a business income refers to net profit i e. If you re self employed your net income is your professional income the money you make for providing professional services minus your deductible expenses. Revenue is the total amount of money the business receives from its customers for its products and services.

The net income is the last item on an income statement. Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. The top line of every business s income statement is its gross revenue or how much money the company made before anything is taken out. While net income is synonymous with a specific figure profit conversely can refer to a number of figures.

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. So while revenue shows the total amount of money coming in income shows the total amount coming in and out. 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. Profit simply means revenue that remains after expenses and corporate accountants.

Revenue also known as gross sales is often referred to as the top. Key differences the main difference is the revenue consists of all the expenses and incomes. There is a logical reason why revenue is also called the top line while net income is often referred to as the bottom line in terms of finance.