What is annual business revenue?

The annual business revenue is how much money a company generates in a year, whether from sales or interest from investment. Companies must keep up with annual revenue as it is a number used for tax purposes.

Revenue is different from net profit. Net profit is how much is left after all of the company's expenses are subtracted from the revenue. It is the money made after taking into account how much it cost to pay salaries, purchase supplies and keep any buildings maintained and running. Net profit is more important to investors as it determines how well a company is doing overall.