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.