The Importance of Service Revenue

The determination of sales revenue is important for various reasons.

It can be used as a performance indicator

Service revenue reflects a company's performance, with higher or lower levels indicating improvement or decline in service provision.

It aids in the differentiation of various revenue streams

Categorizing service revenue by source helps assess performance and identify successful and underperforming services.

It assists forecasting models

Service revenue can be projected using different forecasting models, enabling businesses to estimate recurring and project-based revenue levels.