Revenue

Revenue is an umbrella term that collectively refers to all income that a business incurs. This can include money earned from normal business operations like sales of goods and services (operating revenue) or revenue incurred through side activities like the sale of fixed assets, licensing, or rental income (non-operating revenue).

The Formula:

Revenue is a gross income from which business expenses are to be deducted. Hence, it reflects your top-line growth.

Once all these expenses are deducted, what’s left is known as net income or net revenue. Operating revenue is a recurring form of income i.e. it is incurred regularly due to ongoing business operations whereas non-operating revenue is rare.

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