Gross revenue is your total annual income: what your business earns before deducting expenses. Net revenue is your actual profit (after expenses are deducted).
You might think that only net revenue matters, but gross revenue can be a useful figure if you’re seeking investment. For instance, say your business is bringing in a good total annual income but has a low net revenue due to the one-off purchase of a building to operate from. In this case, your business might be doing much better than the net revenue figure alone would suggest.
By calculating your company’s total annual income, you can determine how much your company has made in the year before any expenses are deducted. When analyzing this figure, it is important to keep in mind that it isn’t the same as your annual profit.