Overview
Many business owners confuse revenue with income. While related, they are not the same.
Understanding the difference is essential for measuring true business performance.
What Is Revenue?
Revenue is the total amount of money generated from sales before deducting any expenses.
Example:
If you sell products worth ₦500,000 in a month, your revenue is ₦500,000.
Revenue does not consider costs.
What Is Income?
Income is what remains after subtracting expenses from revenue.
Income = Revenue − Expenses
Example:
If:
Revenue = ₦500,000
Expenses = ₦200,000
Income = ₦300,000
Income represents your actual earnings or profit position.
Why This Difference Matters
Revenue shows sales performance.
Income shows business profitability.
A business can have:
High revenue but low income (if expenses are high)
Moderate revenue but strong income (if expenses are controlled)
Tracking both ensures you:
Avoid overspending
Understand profitability
Make informed financial decisions
Where to Track These in TELA
Revenue appears in your Sales Report
Expenses appear in your Expense Report
Income is calculated by subtracting expenses from revenue
Review both reports together for full financial visibility.