2016-12-02 00:00:00 Finance and Accounting English Learn the difference between income, profit, and revenue so that you can create a statement of profit and loss for your new small business. https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/03/08214726/Accountant-Eager-Explain-Revenue-Listener.jpg What Is Revenue?

What Is Revenue?

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Revenue is your business’s gross income; the terms are interchangeable. Revenue includes all of the money that comes into your business within a specific time frame, minus any discounts given to customers and the cost of all merchandise that was returned.

To complete a statement of profit and loss for your business, you need to know the difference between income, profit, and revenue. The money your business receives in exchange for goods and services is called income; it’s all of the money coming into your business.

To determine your business’s net income, you subtract your business costs from your revenue. If you have money left over after subtracting your costs from your gross income, that money is your company’s profit.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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