Income Statement Breakdown (Part 1): Revenue
Your business’ most basic numbers are revenue, expenses and profit and most people just pay attention to those. That might work at a basic level but “revenue minus expenses equals profit” is too simple. Business owners need to know how various expenses impact their business. In this 4-part series, we’ll break open the income statement so you can see how different elements work together and what each one means to you.
The first part of the income statement is the Revenue section. This is all the money that comes into your business. Gross Sales is counted here (which is all the money you get paid) and returns and discounts are taken off. At the end of this section is Net Sales.
Tags: Break, Business Owners, Elements, Employee Wages, Gross Sales, Income Statement, Marketing, Mistake, Money, Net Sales, New Opportunities, Period Of Time
