What’s the Difference Between Revenue and Income?

Revenue and income are two important financial terms that are often used interchangeably, but they actually have different meanings.

Revenue refers to the total amount of money that a company earns from its primary business activities, such as selling products or providing services. It is the top-line number that represents the total amount of sales generated by a business over a specific period of time.

Income, on the other hand, refers to the amount of money a company earns after deducting all expenses from its revenue. Income is the bottom-line number that represents the profit or loss of a business over a specific period of time.

In simpler terms, revenue is the total amount of money that a business earns, while income is the amount of money that a business earns after deducting all expenses. It is important for a business to track both revenue and income to understand the financial health and profitability of the company.