Revenue
Total income from sales of goods or services before any expenses are deducted.
Revenue, the "top line," is total income from primary business activities. It can be operating (core activities) or non-operating (interest, asset sales). Under accrual accounting, revenue is recognized when earned, not when cash is received. Revenue recognition standards (ASC 606) provide detailed guidance for long-term contracts and subscriptions.
Example
A SaaS company has 500 subscribers at $100/month, generating $50,000 in monthly recurring revenue recognized when the service is delivered.
Why It Matters for Your Business
Revenue is the foundation of your business, and tracking it by source, product, and segment helps you understand what's driving growth and where to focus.
Practical Tips
- •Break revenue into categories to identify your strongest income streams.
- •Monitor revenue trends monthly to detect growth or decline early.
Related Terms
More Accounting Terms
Accounts Payable
Money owed by a business to its suppliers or creditors for goods or services received but not yet paid for.
Accounts Receivable
Money owed to a business by its customers for goods or services delivered but not yet paid for.
Accrual Accounting
An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.
Asset
Any resource owned by a business that has economic value and can provide future benefits.
Balance Sheet
A financial statement showing assets, liabilities, and equity at a specific point in time.
Related Financial Guides & Resources
Automate Your Finances with AI
FiscalInsights uses AI to automate bookkeeping, track expenses, and forecast cash flow — so you can focus on your business.
Start Free Trial