Revenue is the total income a business earns from its normal activities, selling goods or services, before any expenses are deducted, also called the top line.
Revenue is the money earned from a business's core activities, sitting at the top of the income statement (hence "the top line"). Under accrual accounting, revenue is recognised when it is earned, when goods are delivered or services performed, not necessarily when cash is received.
Revenue is not profit: many expenses are subtracted before you reach net income. It also differs from cash flow, since credit sales boost revenue before any cash arrives. For GST/HST-registered businesses, revenue is the base on which sales tax is charged, and the $30,000 threshold is measured against it.
A business invoices $500,000 of services in a year. That $500,000 is its revenue, regardless of how much has been collected, and it is the figure from which all expenses are subtracted to find profit.
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