Many people think finance and revenue are same, but they are not. They both work on money but have different responsibilities.
The other day I saw on TV that new ministers in the state of Telangana were assigned different departments. Two departments in particular, finance and revenue, went to two separate ministers. Up until then, I thought those two departments were the same thing. But after doing some research, I found that finance and revenue are actually different, with different responsibilities. The main thing they have in common is that they both deal with money. Let me explain the difference between finance and revenue.
Finance
The finance department handles an organization’s money stuff. They make the budget, predict money coming in and going out, and report on finances. For personal finances, people manage their own money. This includes saving money and investing. Large companies also have people who manage money. They budget for expenses, plan for the future, and invest money. They also deal with taxes and how the organization spends.
Revenue
Revenue is in charge of making money for the company. They do things like sales, marketing, and helping customers. Revenue is how much total amount the company earns from selling its products or services to people.
Revenue is really important for a company because it shows how well their products are selling. There are a few different types of revenue. Operating revenue comes from things like selling products or services. Non-operating revenue comes from other parts of the business, not the main operations. Recurring revenue happens on a regular basis, like monthly subscription fees. So in summary – revenue tells a company if their sales are doing good or bad. And there are different kinds of revenue depending on where it comes from.
Example :
If we take company “A”, company “A” generates revenue Rs. 5,00,000 /-, here Rs5,00,000/- is the revenue generated by company “A” by sales and some other ways. Now financing is responsible who to manage this revenue like paying salaries, investing and for an advertising. So, here financing is responsible for managing that money effectively and efficiently.