When you think of revenue vs sales, do you wonder what the similarities and differences are? Well, it is pretty straightforward; revenue is the total income a company generates from selling goods or services that can be attributed to the company’s core operations. <\/p>\n\n\n\n
Sales, on the other hand, are simply the proceeds a company generates from selling goods or services to its customers.<\/p>\n\n\n\n
Due to their similarities, some companies inaccurately use the terms sales and revenue interchangeably. However, just because it looks straightforward on the surface doesn’t mean the difference between revenue vs sales is that simple. For one, all sales can be classified as revenue, but not all revenue is sales.<\/p>\n\n\n\n
Confused yet? Don’t panic; it will become clearer as we go on.<\/p>\n\n\n\n
\nKey takeaways<\/p>\n\n\n\n
Both revenue and sales are used as the same, but can be easily differentiated in accounting terms.<\/p>\n\n\n\n
Revenue can be calculated by adding sales with other income the company generates, whereas sales can be calculated by multiplying the total goods\/services sold with its price.<\/p>\n\n\n\n
Revenue shows a company\u2019s resourcefulness in generating money, whereas sales show its ability to sell its products\/services.<\/p>\n\n\n\n
Revenue can exist without sales, but sales automatically turn into revenues. <\/p>\n<\/blockquote>\n\n\n\n
What is revenue?<\/strong><\/span><\/h2>\n\n\n\n
Revenue refers to a company’s total income from sales, incoming assets or even cashing out on an investment. While it can account for a business’s sales, a business’s revenue may include income from other sources in addition to its sales. Additionally, revenue can be tracked as a company’s gross revenue and net revenue, similar to tracking sales.<\/p>\n\n\n\n