Let’s start with the basics. Sales revenue is the total amount a business earns from selling its products or services. Think of it as the “top line,” the first figure on the income statement. It’s not the same as profit—profit is what’s left after subtracting expenses. On the other hand, revenue gives businesses a raw look at how much income they’re generating before anything else comes into play.
What is total revenue?
Total revenue covers everything a business earns from selling products or services, including money from other sources like marketing, customer success, and investments. It’s usually higher than sales revenue because it combines earnings from all revenue streams, meaning it has a slightly different calculation than sales revenue.
Why is revenue important?
Imagine planning for the business’s future without knowing how veterinary email list much money it’s bringing in. Impossible, right? Revenue is the starting point for almost every financial decision, from budgeting and hiring to forecasting growth. It’s also one of the key numbers investors and lenders look at when deciding whether to fund the business.