Money earned from normal business activities like sales and services—the total income before expenses.
Revenue is the total money your business earns from its primary activities—usually selling products or services. When a client pays your invoice, that payment is revenue. It's the top line of your profit and loss statement, before any expenses are subtracted.
Revenue shows the scale of your business activity, though it doesn't tell you whether you're profitable.
Revenue and profit are often confused but are very different:
A business can have high revenue but low profit if expenses are high. Conversely, a smaller business with lower revenue might be more profitable if expenses are well controlled.
Monitor revenue trends over time. Is it growing, stable, or declining? Seasonal businesses may see predictable fluctuations. Understanding your revenue patterns helps with cash flow planning and identifying whether marketing and sales efforts are working.
