The basic definition of revenue is the total amount of money brought in by a company’s operations over a specified time period. The revenue of a company is its gross income before deducting any expenses. Revenue is defined by profits and total earnings—it is the financial gain from sales or services rendered.

Revenue is typically calculated by adding all of a company’s standard earnings, plus any interest earned and any equity increase accrued over the specified time period.

The ability to calculate and analyze revenue accurately is critical to the financial success of any business model. Because of the complexities of the variables involved in this process, it is prudent to consult with an experienced accountant.

However, in general, the first step in the process is to add the entity’s total earnings, such as profits. Following that, factors such as interest and equity must be added to the company’s earnings. These figures should add up to the company’s estimated revenue, from which various expenses and tax liabilities can be deducted.

The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.

If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.