Revenue Comparison Analysis
Compare transaction data revenue with P&L account monthly to identify discrepancies and understand underlying causes
What’s hard about this today?
Organizations struggle to reconcile revenue from different sources - transaction-level sales data often shows significantly different figures than financial statements. This creates confusion about actual business performance, makes it difficult to identify revenue recognition issues, and can lead to inaccurate forecasting and decision-making.
How RyzUp fixes this
Our Revenue Comparison Analysis provides a detailed month-by-month comparison of transaction-based revenue versus P&L reported revenue, highlighting discrepancies and identifying the underlying causes such as timing differences, revenue recognition policies, and non-transactional income streams.
Overview
Methodology
Transaction Data 2: Monthly revenue is the sum of 'Total Price' for orders with 'Order Status' of 'Completed' or 'Shipped,' grouped by month of 'Order Date'
Profit and Loss: Revenue is reported as 'Total Trading Income' per respective month
Compare monthly revenue totals from both sources and analyze differences
Monthly Revenue Comparison
Month | Transaction Revenue | P&L Revenue | Difference | Analysis |
|---|---|---|---|---|
| Apr 2025 | $409.45 | $33,400 | -$32,990.55 | Only 1 order; P&L recognizes much more revenue from consulting/services not in transactions |
| Jan 2025 | $1,201.60 | $40,455.58 | -$39,253.98 | Only 1 completed order; likely includes consulting or other non-e-commerce streams |
| Dec 2024 | $1,061.79 | $42,817.84 | -$41,756.05 | One completed order; significant gap from timing or non-e-commerce income |
| Nov 2024 | $366.88 | $68,285.08 | -$67,918.20 | Only one completed order versus large P&L revenue |
| Sep 2024 | $1,928.54 | $63,770.21 | -$61,841.67 | Multiple shipped orders; P&L value much higher |
| Aug 2024 | $453.75 | $91,438.35 | -$90,984.60 | One completed order; significant difference |
| Jul 2024 | $0 | $74,604.41 | -$74,604.41 | No completed/shipped orders recorded; P&L revenue reported |
| Jun 2024 | $0 | $58,357.19 | -$58,357.19 | No transactions posted; P&L revenue reported |
| May 2024 | $565.23 | $118,338.79 | -$117,773.56 | One pending order excluded; minimal completed/shipped |
| Mar 2024 | $0 | $55,603.94 | -$55,603.94 | No completed/shipped orders; P&L revenue reported |
| Feb 2024 | $0 | $37,983.94 | -$37,983.94 | No eligible transactions; P&L revenue reported |
Revenue Comparison Trend
Key Findings & Analysis
Extensive differences found between transaction-based sales and P&L revenue for every month
P&L revenue is consistently much higher than sum of 'Completed' and 'Shipped' order values
Transaction sheet mainly covers retail product sales, while P&L includes total trading income (mostly 'Consulting Revenue')
Many transaction records are 'Returned', 'Cancelled', or 'Pending' - these don't contribute to realized revenue
P&L reflects accrual-based recognition (consulting, long-term projects, MRR) rather than shipment-based triggers
P&L may include revenue adjustments, manual entries, rental income, periodic accruals not in transaction sheet
Retail/e-commerce product sales are only a small fraction of overall operations
Specific Revenue Streams Causing Differences
Consulting Revenue is the main driver of P&L income (e.g., Apr 2025: $32,000 out of $33,400)
Supplies, Turn Key, and Other Revenue are minor and not fully mapped to retail transactions
Retail transactions have limited impact on monthly trading income
Company's main activity is not direct product retail, or revenues are recognized through different accounting process
Summary: Revenue Comparison Sample
Transaction Data Revenue
Actual sales of products marked completed or shipped
P&L Revenue
Total Trading Income including all revenue streams
Difference
Gap between transaction and P&L revenue
Conclusion & Reconciliation Notes
Finding | Impact | Recommendation |
|---|---|---|
| Transaction revenue substantially less than P&L | Large gap in every month examined | Further detail on consulting revenue invoicing needed |
| P&L includes consulting and service revenue | Not reflected as product sales | Map consulting contracts to recognition periods |
| Timing of recognition differences | Accruals, milestones, contracts | Document matching accounting policies |
| Exclusion of returns/pending orders | Reduces transaction-based total | Track return patterns and pending conversion rates |
| Non-transactional revenue entries | Consulting, rental, other streams | Create comprehensive revenue stream mapping |
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