Revenue is income or fees received for providing goods or services. Under the cash basis method of accounting, revenue is recorded when the payment is received. Differing from the cash basis method is the accrual basis method of accounting. Under the accrual basis method of accounting, revenue is recorded when earned, meaning the service has been performed or the goods have been provided, even if cash has not been received.
Revenue will usually have a credit balance.
Revenues can be allocated between operating revenues and non-operating revenues depending on their source.
For more information on debits and credits, see the article “What is a debit and a credit?”
For more information on the cash versus accrual basis method of accounting, see the article “What is the Cash versus Accrual Method?”
To find out what method is right for your business it is smart to consult with an accountant, tax professional, or CPA to further discuss the matter. If you would like to find a professional, please refer to our partner program to find a Crunched Partner nearest you.