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Revenue is the sum of all sales during the given time period and it is one of the top lines of a company’s income statement. There is a lot of difference between gross revenue and net revenue.
Every revenue-effecting changes made in the business should be accounted for to get the total revenue, and tracking such changes can grow out of control for most businesses as it involves taking the everyday billing, cost of sales, the incremental of the month’s payments, charges, change in pricing etc.
The gross revenue is calculated from the total revenue of a sale without considering the expenses. The net revenue is calculated by subtracting the cost of sales from the gross where the expenses include the fee of shipping, production, storage and offers like discounts or returns.
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