Average Annual Receipts
A firm's total income averaged over five fiscal years, used to test revenue-based size standards.
Average annual receipts is the measure used to apply receipts-based size standards. Since the Small Business Runway Extension Act, the SBA calculates it over the firm's most recently completed five fiscal years (up from three), giving growing firms more time before they outgrow a standard. Receipts mean total income plus cost of goods sold as reported to the IRS, generally excluding net capital gains, taxes collected for a third party, and amounts passed through to subcontractors on a construction or services contract under certain conditions. The receipts of all affiliates are included.
Primary Sources
Last updated Update cadence: Quarterly, plus on regulatory changes
Change log (1)
- LaunchedPublished the glossary covering 48 federal contracting terms with DefinedTerm structured data, primary-source citations, and cross-links into the NAICS, PSC, agency, vehicle, and FAQ pages.