Difference between Sales and Income

Main difference

The main difference between Sales and Revenue is that Sales is the exchange of money from merchandise and facilities that the company is providing throughout a specific financial year, while Revenue is the money that the company receives apart from its various actions.

sales vs. Income

Sales is the procedure of exchanging goods and providing services of one’s own company to the consumer with the exchange of money during one financial year of an organization. On the contrary, revenue is the total amount of profit a company makes by selling its products or providing its services with all its resources. Sales indicate the profit received after trading things and providing convenience to customers. At the same time, income points to the total volume of money generated by the corporation after its collection of various shares.

Sales shows the settlement between the buyer and the seller that involves the naming of goods in exchange for conventional consideration, while income describes the income received from the sale of things, the sale of services or the expenditure of wealth of In any other way, income is associated with the elementary activities of the business, before giving rise to expenses and costs.

Sales are one of the critical sources of company revenue, while revenue is the consequence of sales. There is no presence of sales without revenue, while revenue comes from sources other than sales. Therefore, income can be said to consume a separable existence. Sales shows a company’s competence to sell important products and services to generate profit. Rather, revenue shows a company’s ability to dedicate and allocate its capital for profit.

Total sales are calculated by adding the total amount of goods sold with the value of the products, while total revenue is calculated by adding the total profit from transactions and additional revenue.

Comparison chart

Sales Income
Sales are the exchange of money for the supply of goods and services. Revenue is the total amount of revenue generated by the business.
It is a base of the income of the company. sales result
It represents
Operating profit total income
Sales cannot exist without income. Income without sales is possible
Related to
The contract between buyer and seller Relate to the activities necessary for the business
Shows the ability to sell primary products and services for profit. Demonstrates investing and allocating your resources to make a profit.
calculating by
Multiply the total number of goods sold by the price of the goods Adding the total revenue from sales and other royalties

What are sales?

A sale represents the exchange of cash for goods, services, or other possessions, and businesses make the necessary profit by selling their products or services. Sales are the total financial value of the productivity that the industry sells during a specific fiscal period. Sales are gaining by matching the number of items supplied by the corporation throughout the year with the trade value of the merchandise.

A sale is a contract involving two or more parties in which the buyer accepts things, comforts, and material or elusive goods in exchange for a specified amount of money. There are both sales, included in the whole process, which are cash sales and credit sales. If the transactions are processed in cash, it is a cash sale, and if customers who do not pay in full for the stock at the time of purchase make the sale, it is a credit sale.

To complete a sale, the buyer and seller must contemplate the experience to create the contract. Sales work is the most common and one of the most profitable occupations followed by almost all people.


  • Transnational Sales: It is the preliminary idea of ​​a sales profession.
  • Feature Selling – Feature selling is also the best way to bypass before a person becomes a customer.
  • Value Selling: It is the high point of sale. The people who may be worth selling to are successful, naturally closed businesses.
  • Consultative Selling: Consultative sellers are not trying to present their products, but they are also trying to act as the right consultant for their potential customers.

What is income?

Revenue is the total profit the corporation produces through operating and obsolete stock in a fiscal year. Revenue is the gross total before creating any type of expense or subtracting any type of cost. The group is given such an amount that is acceptable to the corporation, for a precise time.

Revenue is reduced in two ways, first is gross revenue and second is net revenue, when the total amount of sales is identified for a record period, before any assumption is called gross revenue. This amount shows a company’s ability to sell goods and services, but not the ability to make a profit. Net income is the total amount of money you earn from sales minus your direct costs. Net income helps you know which dealerships are working for your business.

Revenues are different for the goods and services industry; A developed business earns an extreme amount of its revenue from the sale of products, but in the service industry, such as a beauty salon, it receives the certain portion of its revenue from providing services to customers.


  • Operating income: This income that you receive from the main activities of your business, such as sales, if you are a reform company owner, the operating income of your business is a result of your services.
  • Non-Operating Income – This type of income is money that generates income from a lateral movement that is separate from the day-to-day activities of your business, such as additional income or investment earnings. Non-operating income records subsequent operating income in the income statement.

Key differences

  1. Sales refer to goods and services, while revenue is the total amount of revenue.
  2. Sales are the fundamental base of the company’s income; on the other hand, receipts are the conclusion of the purchase.
  3. Sales represent operating income; Conversely, revenue represents both operating and non-operating revenue.
  4. Sales do not exist without income on the other hand; Incomes have individual presence.
  5. Sales is the contract between the buyer and the seller; On the other hand, income is the necessary activities of the business.
  6. Sales are calculated by multiplying total sales and the price of goods, while revenue is calculated by adding total revenue and other revenue.

Final Thought

Sales and revenue are two familiar terms. Uncertainty, the sale is an essential and most prominent source of income for the company. Sales are only a part of revenue, while revenue is the result of sales.

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