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Accounting Terms
Revenue
Definition
The total income generated from sales of goods or services before expenses.
Overview
Revenue is the 'top line'—total sales before any costs are subtracted. It's different from profit, which is what remains after expenses.
Example
A consultant bills $10,000 in January. That's the monthly revenue, regardless of expenses.
Best Practices
Track revenue by client, project, or service type. Compare to goals and previous periods.
Common Mistakes to Avoid
Confusing revenue with profit
Not tracking by category
Inconsistent recognition
Frequently Asked Questions
When do I recognize revenue?
Generally when goods are delivered or services performed, not necessarily when paid.