If you're reading a UK annual report, you'll see "turnover" at the top of the P&L. Read a US 10-K and you'll see "revenue" in the same spot. They refer to the same line — the gross income from sales before any deductions for costs. The difference is regional and stylistic, not financial.
The two terms, side by side
- Turnover — Standard UK / Commonwealth accounting term. Total sales revenue for a period. Synonymous with "sales" in the same context.
- Revenue — Standard US accounting and global SaaS term. Total income from sales for a period, before costs.
Both numbers represent the "top line" of the income statement. The calculation is identical: total invoiced or earned amount for goods and services delivered in the period.
Where the two terms diverge in usage
One source of confusion: in some contexts, "turnover" means something different:
- Inventory turnover — How many times inventory is sold and replaced in a period. Different concept entirely; uses the same word.
- Employee turnover — How many employees leave in a period. Different again.
- Asset turnover — Sales divided by assets, a financial ratio.
In all three cases, "turnover" is a rate of churn or cycling, not a revenue figure. Context tells you which meaning is in play. If you see "annual turnover of £4M," it's the revenue meaning. If you see "6x inventory turnover," it's the cycling meaning.
What this means for subscription merchants
Use whichever term your audience expects. UK-based merchants writing for UK investors and auditors use turnover. US-based merchants and anyone writing for global SaaS-style readers use revenue. For internal reporting, pick one and stick with it across your dashboards. The biggest mistake is using both interchangeably in the same document, which makes readers wonder if they mean different things.
For the related distinction with profit, see turnover vs. revenue vs. profit; for subscription-specific revenue topics, see subscription revenue.