Difference between Revenue and Sales

Difference between Revenue and Sales

1.Meaning

Revenue and sales both have the same meaning and can be used interchangeably in business .for example we may say that what has been the revenue of an oil company for this year or alternatively we may also say how many sales have been reported by the company .

2.Gross inflow

Revenue and sales t both reflect the gross inflow of economic benefit to the business i.e. inflow before deducting the expense of business.

3.Broad Term

 Revenue is broader term and can represent income from different sources where sale is mostly used for revenues from trading of goods. For example we may classify different sources of income i.e. income from interest, income from royalty and interest income under the heading of revenues.

4.Tax department

Revenue is a very famous terminology in public sector and public receipt are expressed as revenue. For example

5.Budgets

Budget preparation the term revenues is extensively used instead of sales.