Revenue

In business, revenue or turnover income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, revenue is referred to as turnover. Some companies receive [1] revenue from interest, royalties, or other fees. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time, as in "Last year, Company X had revenue of $42 million." Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, revenue is often referred to as the "top line" due to its position on the income statement at the very top. This is to be contrasted [2] with the "bottom line" which denotes net income. For non-profit organizations, annual revenue may be referred to as gross receipts. This revenue includes donations from individuals and corporations, support from government agencies, income from activities related to the organization's mission, and income from fundraising activities, membership dues, and financial investments such as stock shares in companies. In general usage, revenue is income received by an organization in the form of cash or cash equivalents. Sales revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers. In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Two commonaccounting methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or International Financial Reporting Standards. In a double-entry bookkeeping system, revenue accounts are general ledger accounts that are summarized periodically under the heading Revenue or Revenues on an income statement. Revenue account names describe the type of revenue, such as "Repair service revenue", "Rent revenue earned" or "Sales
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The Advantages of Revenue

n business, not all revenue is recorded in immediate connection with a transaction. Some types of revenue are delayed: for example, when a customer buys on credit, that revenue goes into accounts receivable until it is actually paid. Deferred revenue works in a similar way, but with an opposite framework. The company is paid before the transaction is actually completed, but treats it as income only after the work is completed. There are several advantages to incorporating such a practice in certain industries.

Increased Sales Options

With revenue deferral, companies can offer their clients an additional way to pay, providing increased flexibility that can help attract new clients. For many customers, paying in full for a service before it is completed is easier and more efficient than waiting or paying in installments. The early payment option that creates deferred revenue can actually be a strong selling point if it is marketed correctly.

Accurate Accounting Practices

Revenue deferral is also very useful when it comes to accurate accounting practices. Generally accepted accounting principles call for value to be matched to funds whenever possible. By deferring when revenue is actually accounted for, businesses can link early payments with later work efficiently. Usually, the company holds the money in a deferred account, and then moves it to a true revenue account when the work is completed. This makes the funds easy to trace and shows that the company is following proper requirements.

Returns and Other Changes

Revenue deferral also makes it easier for the business to make changes in payments and transactions. If the money was put directly into a revenue account, then the company would have to reduce that revenue account and overall net earnings in order to make a return or stop a project early. But with a deferral account, the changes are typically easier to make and only the accurate amount of revenue earned is moved to a main account in the end, saving time spent on adjustments and restatement of finances.

Property Savings
When a business or individual wants to sell property, there is a process known as a tax-deferred exchange, a unique type of transaction that can help save on immediate taxes. In this case, instead of earning revenue right away on the sale, the business exchanges the property with a property similar in value and owned by another entity. Because no direct income is earned, the revenue on the sale is deferred until the new property is sold, and taxes are deferred along with it.

Disadvantages to Revenue
Revenue applies to many forms of financial transactions. Any situation in which individuals receive pay based on the amount of money that was made rather than on the amount of work that was done is a form of revenue sharing. Online writers who are paid based on the numbers who read their work and employees who receive a portion of a company's profits are each beneficiaries of revenue sharing.

Online Writing
When a writer creates an article for a website and agrees to be paid based on the number of times the article is read, or the number of clicks that advertisements associated with the article receive, he is being paid through a revenue-sharing model. If the article receives a large number of views, the writer can receive far more money than if he had been paid a set fee. However, this pay will take time to accrue, and a revenue-share article may never earn a large amount of money.

Investments
Corporations that are owned by a large number of shareholders utilize a particular form of revenue sharing. When the corporation makes a profit, the shares increase in value and shareholders divide the financial benefit between them based on their holdings. A large shareholder in a profitable company can realize substantial earnings in this way. However, if the company slows down, investors can lose money; since each shareholder is a part owner of the company, she has to share in losses as well as in gains.

Employees
Progressive employers who want to share profits with employees sometimes engage in profit-sharing schemes that give bonuses based on the company's profit. Employees can add substantially to their income in good years. If an employer uses a profit-sharing plan as an excuse to keep wages low, this benefit may be mitigated. If profit-sharing plans are overly generous, it's possible that decreased capital could damage the growth potential of the company.

Partnerships
Individuals who own companies together engage in partnerships in which the profits of the company are split between them. A business partnership can be very advantageous because the pooled financial resources, talents and time of the partners can be applied to the venture. When profits are earned, they must be split between partners.

Essentials of Revenue

Identify the principles of Revenue Management and explain why they are so important Define the hotels market position and true competitors to correctly position the property in the market Prepare a demand forecast Create selling strategies to maximize opportunities for improving revenues for group and transient bookings Understand the multiple channels to market and define a strategy to optimize these Introduce and implement a weekly Revenue Strategy Management meeting to make revenue management decisions as a team Prepare a Revenue Management action plan to help the business move forward

ESSENTIALS & REVENUE PLAN. - ESSENTIALS PLAN Protective Services

1. Immediate start to a fire hall centrally located in the town. 2. Go into discussions with the RNC for more police presence in the town. Public Services 1. Immediate discussions with provincial government to: - Start construction on a Grade 7-12 school. - Expansion of existing K-6 schools and removal of portable classrooms as these are not appropriate for our children. Transportation & Lighting 1. Immediate completion of Topsail Road to 4 lanes up to the CBS city limits, sidewalks and traffic lights at St Thomas line. 2. Develop a 4 lane bypass from topsail road to the CBS highway (This development would provide a third location to exit and enter paradise thus reducing traffic congestion. 3. Implement a public transit system. 4. Implement a park & ride program for people who work in core areas in the metro area. (This will help with traffic congestion and ease parking in the St. Johns downtown core and other areas) 5. Widen St. Thomas Line with sidewalks to Paradise Road 6. Widen Paradise Road with sidewalks to St. Thomas Line. 7. More street lighting for improving visibility at night. Recreation 1. More parks and playgrounds throughout the community 2. Open Up Horse Beach & develop more walking trails along the St. Thomas Area 3. Basketball and Tennis counts 4. Dog Parks - REVENUE PLAN My revenue plan goes hand in hand with the development of a 4 lane bypass (in red) from topsail road to the CBS highway as seen in the map below.

revenue profitability
Revenue is the money the company receives for selling their product or service. It is calculated by taking the selling price and multiplying it by the number of units sold. Profit is the amount of money left over after costs have been covered. It is therefore calculated by: total revenue minus total costs. Profit can be used as a measure of the businesses success, attracting investors and reinvesting back into the business. The quality of profit can also be measured. Low quality profit is gaining money from an event which is unlikely to occur again in the future but high quality profit is from normal trading activities which should continue to occur in the future. It is important when told a company's profit, that it is clear what type of profit it is (gross, operating, pre-tax or after tax).

Revenue is the income that a business receives, total revenue would be formulated by price times quantity However business occurs expenses along with the sales, therefore to calculate the net effect of the income that business receives, we use profit which is essentially the revenue minus expenses/costs incurred

Causes of a Revenue
Negative revenue variance occurs when revenues from a business project are lower than expected. This may occur because the expected budget was different from the actual budget and the return on investment was not as high as thought. It may also occur when the income reports from one year are lower than the reports from the previous year.

Negative variance is a serious issue and a good reason for businesses to spend time finding out what factors caused the drop in revenue.

Market
The market must always be considered a vital factor in revenue variance. Sometimes a business can plan out every move and the market can still abruptly shift, leading to a loss in sales or, often, a transposition in sales as consumers begin to prefer one feature or product over another. This is largely outside of the control of the company and can always create negative returns on a project that was thought to be successful and vice versa.

Poor Predictions
For many expected budgets, some amount of revenue prediction is necessary. However, prediction always opens up the possibility of errors, sometimes serious errors. Estimating inflation at constant rates for future cash flows is easy, but inflation does not always follow constant rates. When it comes to predicting the changing market or the cost of supplies down the road, creating a useful prediction becomes even more difficult and revenues can be inflated artificially.

Supply Shortages
When a supply shortage occurs, demand for supplies increases. As a result, suppliers raise their prices and businesses suddenly find that their cost of goods sold is higher than expected. This leads to lower profitability and a drop in net income. In many ways a supply shortage is also the result of market changes, but businesses see it on the back end, reducing profit, instead of on the front end where it directly reduces sales figures.

Changing Business Strategy

Sometimes negative revenue variance is expected. This occurs when a business changes its product lineup, location or other factors that will affect sales. There is typically a transition period that occurs, when product sales fall for a short amount of time from previously levels as the market reacts to the change. If the business plans correctly, revenues will again rise with the new model. Revenues decrease for any number of reasons. Manufacturing or delivery problems result in reduced product availability. Consumer tastes change and demand for your goods declines. Economic conditions force consumers to spend less on discretionary purchases. Staff changes adversely affect your ability to sell as much of the product. All of these factors can play a role in revenue slippage.

REVENUE KNOWLEDGE
Many of us have heard of Revenue Management but less of us understand the truly essence of Revenue Management. Before we go further on Revenue Management strategy, we need to understand what Revenue Management really is in Hotel Industry. (We need to limit our discussion in hotel industry since this RM is actually can be implemented in any sectors) Definition The Simple definition of Revenue Management is selling the right type of room to the right customer at the right price in the right time using the right distribution channels. Revenue management is use to maximize the potential revenue by analyze and predict the customer behavior and market trend, easy example: is selling the room at lower price if you are predicting low in room demand and sell it at higher price if you are expecting higher demand in your competitor set area. Good practice of Revenue management will help sales people to maximize hotel revenue in peak period and stimulate demand in low period.

In practicing Revenue Management, sales people need to take many factors before making decision, sufficient knowledge about typical clients, pricing positioning, competitor pricing, what going on in your surrounding which may impact to city or area occupancy, understanding of past statistic, what is your competitors doing, what right channels to be use and many more.. Some group of International hotels has taken seriously into Revenue Management, they even provide Revenue Room where all scratches and ideas to be kept and discuss by management and revenue team.

REVENUE FEATURES
Configure DoorSwap to automatically follow collection laws in each of your property regions. You can rest assured that letters are sent and procedures are followed at every step of the lien and auction process.

Collections

DoorSwap drives the collections process by first sending a statement directly to the tenant. We will deliver a paper statement which is printed, metered, and mailed by us. Or it can be an email statement, formatted as you choose.

The next level of collections is the lien process. DoorSwap will send multiple levels of late notices, which can also be paper or email. DoorSwap will also charge late fees. DoorSwap can be configured to operate auctions based on your state regulations. We can send certified mail automatically. Once we've sent a regular or certified notice, an exact duplicate of the notice is stored on the customer record for your review. DoorSwap lets you click to track certified mail, and electronic return receipts are also attached to the customer record for you to review signatures. No more drawersful of green return cards!

DoorSwap integrates with all major gate controller system, allowing for real-time enabling and disabling of gate access based on your business rules.

Bank Draft and Credit Card

The DoorSwap service can automatically debit a tenants' bank account card each month, or charge their credit card. Or your tenant can go online to the DoorSwap web interface and pay with a one time bank draft or credit card payment. Even better, the tenant can scan a code on their monthly statement and make an instant mobile payment. You can literally sit on the beach and watch your revenue being collected.

These are the features below, features for revenue:

Revenue

1. Coupons. Promote your site offering coupon discounts. 2. Unlimited listings plans. You can shape your listing plans as you want, and you can create plans for specific categories or assign them to some user groups only. Subscription plans are also available. 3. Featured Ads - Paid feature for listings that show in a special section on the first page. 4. Highlighted Ads - Paid feature for listings that show in a different color to be more visible than the other listings.

5. Prioritized Listings - Paid feature to place a listing on top, before all other listings. 6. Dealer Page - Paid feature to allow for an account a special page where user details and all user listings are shown, and allows replacing the header image with user's own logo.

Importance of Revenue
Revenue, also referred to as sales, is the amount of money a company brings in or earns before any expenses are taken out. From an accounting perspective, revenue typically consists of product and service sales on account or where the customer paid in cash.
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Economic Engine
The most basic point about the importance of revenue is that without it, your company cannot earn a profit and stay viable in the long run. You need to collect revenue to justify the fixed and variable expenses you pay just to operate a business. In simplest terms, zero or low revenue leads to an unprofitable business and negative financial results.

Growth
Revenue is often examined more closely than profits when assessing the growth of a business. Investors want to see that a business is able to perpetually generate more sales over time as the company is promoted to an expanding audience. Flat or declining sales growth suggests that the company has stalled and offers limited hope for continued growth. Stagnant companies may produce near-term profit, but they don't attract the interest of new investors.

Credit
To qualify for loans and favorable interest rates on credit accounts, lenders need to see that you are able to generate steady revenue from regular business activities. This, along with assessments of your existing debt structure, help in their analysis. Poor revenue and weak attractiveness to lenders makes it difficult for a company to fund new projects and business activities. This makes it especially challenging to dig your way out of a tough spot.

Confidence
Revenue also has critical psychological implications both internally and externally for your business. Employees want to feel confident in their employer and have a sense of security and stability in their jobs. Strong revenue production offers employees this feeling of comfort. Revenue affords similar comfort to business partners, suppliers,

community members and other stakeholders impacted by your business. More confidence from stakeholders makes them more likely to take risks and make decisions to support your company.

Conclusion
Money income from activities that are ordinary for a particular corporation, company, partnership, or soleproprietorship. For some businesses, such as manufacturing and/or grocery, most revenue is from the sale of goods. Service businesses such as law firms and barber shops receive most of their revenue from rendering services. Lending businesses such as car rentals and banks receive most of their revenue from fees and interest generated by lending assets to other organizations or individuals. Revenue is a crucial part of financial statement analysis. A companys performance is measured to the extent to which its asset inflows (revenues) compare with its asset outflows (expenses). Net Income is the result of this equation, but revenue typically enjoys equal attention during a standard earnings call. If a company displays solid top-line growth, analysts could view the periods performance as positive even if earnings growth, or bottom -line growth is stagnant. Conversely, high net income growth would be tainted if a company failed to produce significant revenue growth. Consistent revenue growth, if accompanied by net income growth, contributes to the value of an enterprise and therefore the stock price. Government revenue includes all amounts of money (i.e. taxes and/or fees) received from sources outside the government entity. Large governments usually have an agency or department responsible for collecting government [6] revenue from companies and individuals. Government revenue may also include reserve bank currency which is printed. This is recorded as an advance to the retail bank together with a corresponding currency in circulation expense entry, that is, the income derived from the Official Cash rate payable by the retail banks for instruments such as 90 day bills. There is a question as to whether using generic business-based accounting standards can give a fair and accurate picture of government accounts, in that with a monetary policy statement to the reserve bank directing a positive inflation rate, the expense provision for the return of currency to the reserve bank is largely symbolic, such that to totally cancel the currency in circulation provision, all currency would have to be returned to the reserve bank and cancelled. Association non-dues revenue is revenue generated through means besides association membership fees. This revenue can be found through means of sponsorships, donations or outsourcing the association's digital media outlets.

How HMRC collects tax revenue to support Government policy

Conclusion
HMRC's role is vital for the government's control of the economy. Its innovation in using online technology has made tax collection easier and made it harder for income taxes to be evaded. It uses tax revenue to finance its plans for the economy. Society has benefited from all the projects and services that are provided through public expenditure. HMRC's role is vital for the government's control of the economy. This case study helps to illustrate the differences between the two main areas of taxation, direct taxes and indirect taxes. It illustrates how governments use both fiscal policy and monetary policy in order to meet their objectives. Finally, the case looks at the processes for collecting income taxes, both for the employed and the self-employed and how it communicates the tax message.