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At its simplest, sales is the exchange of something of value for currency. When talking about sales, you often hear these terms:
gross sales: refers to the total amount of money you bring in from selling your products or services over a given time period. For example, a saas company may sell 10 yearly licenses of its software for $1 million each. That’s $10 million in gross sales for the year.
Net sales: this is the gross sales amount minus the cost of goods student data sold (cogs). If you sold $10 million in saas licenses, as in the above example, and have $2 million in cogs, your net sales for the year would be $8 million.
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what is revenue?
Revenue is the total amount of money your business brings in or the top line on your income statement.
To come up with this total, add all the money you generate from sales, primary business activities, and non-operating revenue, such as profit from investments. The company can use this money, including recurring revenue, to cover costs like equipment purchases and employee compensation.