The Basics of Small Business Revenue

收入是您业务的重要组成部分。您的业​​务需要收入才能生存。因此,重要的是要了解收入。

Below you will learn what revenue is, why revenue is important, how to calculate it, and how to increase it.

What is revenue?

Revenue is the money your business receives during a certain accounting period.

Revenue is also called the top line because it is the first item listed on yoursmall business income statement. You subtract business expenses from revenue to get yourcompany’s bottom line.

You will determine your revenue differently depending on if you use accrual or cash accounting. Inaccrual accounting,只要您已将商品或服务提供给客户,就可以将以信贷作为收入进行的销售包括在内。在里面cash method of accounting, you only include sales as revenue if the customer has paid you.

The two types of revenue

There are twotypes of revenue: operating and nonoperating revenue.

营业收入是收入哟ur company earns from its main business activities. For example, sales to customers are operating revenue.

Nonoperating revenue is revenue your company earns from activities that aren’t directly related to your business. For example, you might earn nonoperating revenue from investing or renting your building to another business.

Why is revenue important?

Revenue is what keeps your business alive. Beyond being a lifeline, revenue can give you key insights into your business.

如果您想增加业务利润,则需要增加收入。通过关注您的收入并专注于增加收入,您也可以增加利润。

By tracking your revenue across consistent accounting periods, you can compare it over time. For example, you can compare your business revenue between years or quarters.

You will also use your revenue for tax reporting. You will subtract your expenses from your revenue to determine your business’s taxable profits.

Revenue formula

To calculate revenue, you need to know a few numbers.

First, calculate your operating revenue. Multiply the number of goods or services sold by the price you sold them for. For example, if you sell 300 pairs of shoes at $80, your operating revenue would be $24,000 (300 x $80). Do this for all the products or services you sold. Add together all your operating revenue.

Next, calculate your nonoperating revenue. Simply add together all your earnings from non-business activities.

Finally, add together your operating revenue and nonoperating revenue.

Total revenue= operating revenue + nonoperating revenue

Ways to increase revenue

You can take steps to increase your business’s revenue.

增加收入信息图的方法

You might increase the prices of your products or services. Assuming you maintain the same number of sales, your revenue will increase from the price increase. You do need to be careful though because some customers might take their money elsewhere when you increase your prices.

Try increasing the number of new, individual customers you have. You might need to increase your marketing or expand your target market.

You might try to increase the average amount customers spend per transaction. To do this, you have to convince customers to buy more. You need to offer incentives. You might have sales, bundle products, or give free samples when customers spend a certain amount.

Increasing customer frequency can also increase your revenue. When customers purchase more often, you will have a larger and more consistent influx of revenue. Special promotions and sales can encourage more frequent purchases.

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