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Written by Matt Fox
Updated over a week ago

Often referred to as turnover, earnings, or income, Revenue is calculated quite simply by summing up all the income earned from services provided or goods sold within a specific period. This includes items such as sales invoices, goods sold, services rendered and any other trading income in your underlying accounting software. It's the gross income before any expenses are deducted.

Revenue is a critical indicator of an organization’s financial health and market position. It reflects the organization's ability to attract and retain customers or clients, the value of services it offers, and its overall market demand. Monitoring revenue helps the business gauge its growth over time, plan for capacity, and make informed strategic decisions about pricing, service offerings, and business development.

Revenue projects a company's revenue over a year based on its current income, accounting for seasonal variations or other factors. It's useful for comparing the annual revenue performance of companies regardless of when the data was recorded.

A strategy to Improve Revenue is to Expand Market Reach: Broaden your customer base by exploring new markets geographically or through online platforms to access a larger audience.

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