Revenues and Receipts: Defining the Difference

by Vincent / 2018-10-01 / Published in B-Accounting, Blog
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There’s an important difference when it comes to defining revenues and receipts - it’s key to understanding financial statements, particularly within a short period of time.

Here’s how you can easily define the two: 


Put simply, this is how much a company has earned from business activities, including but not limited to: sales of merchandise and services.

Importantly, it also includes earnings from payments from a dependable customer when credit is offered; i.e. a customer is allowed to pay 60 days later (known as the accrual method in which revenues are reported on an income statement).


This refers directly to the amount of cash a company receives. I.e. it does not include agreements that will be paid at a later date.

Examples of receipts which are not classified as revenues include:

  • Borrowing cash from banks
  • Payments received from customers that had purchased goods and/or services on credit 30 days earlier
  • Disposing of company vehicles and receiving cash equal to the vehicle’s book value
  • Receiving repayment cash from an employee who had previously borrowed from the company
  • Payments from investors for new shares in the company’s common stock

Need Help?

 Specialist in Accounting Services in Bangkok,  B-Accounting is the firm to contact to look beyond the numbers and removing the pain.  Call us on +66 (0)2 234 4889 or check out our website. 

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