Annual revenue is the sum of all revenue a business earned during its fiscal year. You can find annual revenue by adding all revenue accounts together on the annual company income statement. Where to find each revenue account depends on the style of income statement the company uses.
Types of Revenue Accounts
Many companies distinguish between two types of revenue: operating revenue and non-operating revenue. Operating revenues are earned from the primary business functions of the company, while non-operating revenues are generally from investments. The most common types of operating revenue are revenues and gains from sales, services, rents and fees. Non-operating revenues and gains could be gains from the sale of investments or interest revenue from loans the company has extended.
Finding the Revenue Accounts
In a single-step income statement, the company lists all revenues in the first section of the income statement. In a multi-step income statement, the company lists operating revenues in the initial section of the income statement and non-operating revenues in a subsequent section. Locate all revenue accounts according to the format, and then add the totals to find total annual revenue.
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