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What is the difference between revenues and earnings?

Posted by Dairel Denton Posted on May 30 2017

 

As a small business owner it's important to know just how you're doing.  We help business owners every day know just how healthy their business is doing, because sometimes the numbers can be misunderstood.  For instance, a business’ revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement.

Revenues are the gross amounts earned from selling goods or providing services during a certain period. In other words, revenues are the total amounts earned before deducting cost of goods sold, any expenses, and losses the business received.

Earnings are the amounts earned after deducting the cost of goods sold, expenses and losses. It is often presented as net income. 

If you need help determining your business' earning, give us a call.  Our knowledgeable team can help.  Call us at 573-686-3053.

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