Revenue
Also called: turnover, sales revenue
What is Revenue?
Revenue is the total value of goods and services sold in a period, before any costs are deducted. It is also called turnover or top line, and in GST terms it maps to your outward supplies.
Why Revenue matters
Revenue is the headline number everyone quotes and the least informative one on its own. Growing revenue with falling margin is a common and expensive way to get busier without earning more.
Revenue formula
Net revenue = Gross sales − Returns − Discounts
Excludes GST collected, which is not income but tax held on the government's behalf.
How Revenue works in practice
Read revenue net of returns and discounts, and separate it by channel — dine-in, delivery, wholesale — because each has its own cost structure. Revenue also sets GST registration and filing thresholds.
Frequently asked questions
No. Tax collected is a liability, not income, so revenue is measured net of it.