Business and Finance

The Difference Between Turnover And Revenue

The difference between Turnover and Revenue is that Turnover is related to total business transactions and Revenue is the revenue received from the sale of products or services. Turnover is a broad term used in different contexts in various disciplines. In general, this implies business or trade carried out by companies in terms of money within a certain period. Meanwhile, if you want to know more about bookkeeping instead, we suggest you visit the website of Richard Darcy Gold Coast Bookkeeper.

On the other hand, the word revenue is specific, which refers to the results received by the company in a certain period. This is not the company’s profit, but rather the company’s acceptance.

For most people, these words are one and the same thing, in fact, they relate it to the term ‘sales’ but let me tell you, that they are different from sales, as in, selling goods or services is only one revenue stream.

Turnover is a bookkeeping concept that calculates how quickly a business carries out its actions. For the most part, turnover is used to understand how quickly a company collects an amount from trade payables or how fast it sells shares or reserves. In business capital, turnover is well defined as the ratio of a range or billing within a certain time.

Turnover Fundamentals are two of the main assets held by the company are debt or receivables and inventory or shares. Together these financial records require large capital investments, and it is important to measure how fast a business is raising money.

Turnover Percentage calculates how quickly a company collects amounts from its accounts receivable and investment inventory. This proportion is used by experts and investors are important to regulate if the company wants a good investment.

On the other hand, revenue mainly refers to money earned by a company during ordinary business operations, namely operating revenue. This means that, in the case of companies that make a profit, the revenue will be the result of selling commodities to consumers or providing services and in the case of companies that do not generate profits will be in the form of donations, membership fees, and subscriptions.

The terms Turnover and Revenue play a key role in evaluating company activities, and also with company evaluations, in the occurrence of bankruptcy, transactions or sales and mergers.

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