What is profit? Profit structure, its planning, distribution and use in market conditions. Planning and distribution of profits Calculation of the needs of enterprises in working capital
COURSE WORK
ON THE DISCIPLINE: "Finances of the organization"
TOPIC: "Planning and distribution of profits"
Option 2
| Introduction | 3 | |
| I | Theoretical part | 5 |
| 1. | 5 | |
| 1.1. | 5 | |
| 1.2. | Sources of profit | 13 |
| 1.3. | 14 | |
| 2. | Profit planning methods | 19 |
| 2.1. | Direct counting method | 19 |
| 2.2. | Analytical method | 20 |
| 2.3. | 21 | |
| 3. | 23 | |
| II | Calculated part | 27 |
| Conclusion | 45 | |
| List of used literature | 47 |
Introduction
The market economy determines the specific requirements for the enterprise management system. It is necessary to respond more quickly to changes in the economic situation in order to maintain a stable financial condition and continuous improvement of production.
The enterprise independently plans its activities and determines development prospects based on the demand for manufactured products and the need to ensure production and social development. Among others, the independently planned indicator was profit.
In a market economy, the importance of profit increases. This is the most important indicator of the efficiency of the enterprise, the source of its life. However, it cannot be assumed that the planning and formation of profits remained exclusively in the sphere of interests of only the enterprise. The profit of the enterprise creates the basis for the economic development of the state as a whole. The mechanism for the redistribution of enterprise profits through the tax system makes it possible to fill the revenue side of state budgets of all levels. This gives the state the opportunity to successfully fulfill the functions assigned to it and implement the outlined programs for the development of the economy.
Commercial banks, investment structures, shareholders and other holders of securities are equally interested in this.
The formation of a mechanism of fierce competition, the volatility of the market situation put before the enterprise the need to effectively use the internal resources at its disposal, on the one hand, and on the other hand, timely response to changing external conditions, which include: the financial and credit system, the tax policy of the state, the mechanism pricing. As a result of these reasons, the directions of analytical activity also change.
The enterprise, having received financial independence and independence, has the right to decide for what purposes and in what amounts to direct the profit remaining after paying taxes to the budget and other mandatory payments and deductions. Determining the ability of an enterprise to finance its needs is the most important goal of profit planning.
To ensure high economic efficiency of production, a state economic policy is needed that would contribute to the formation of an environment favorable for economic activity and focused the company on maximizing profit.
Optimization of the distribution and use of profits consists in identifying trends and proportions that have developed in the distribution of profits for the reporting year in comparison with the past. As a result of the analysis, recommendations are developed for changing the proportions in the distribution of profits and its most rational use.
The purpose of this work is to consider the economic content of profit, determine its functions in the economy and identify the sources of its formation. Based on this goal, the following tasks can be distinguished:
Research on the role of profit in the economy;
Consideration of profit planning methods;
Analysis of the ways of using and distributing profits at the enterprise.
I Theoretical part
1. Profit and its role in the market economy
Economic content, functions and types of profit
The economic essence of profit is one of the difficult problems in modern economic theory.
From an economic point of view, profit is the difference between cash receipts and cash payments... From an economic point of view, profit is the difference between the property state of the enterprise at the end and the beginning of the reporting period. Profit is the excess of income over expenses.
Under income an enterprise implies an increase in economic benefits as a result of cash inflows, other property and the settlement of liabilities, leading to an increase in capital. The income of the enterprise, depending on their nature, the conditions for receiving and the directions of its activities, are divided into:
Income from ordinary activities - proceeds from the sale of products and goods, receipts associated with the performance of work, the provision of services;
Other income - operating, non-operating, and extraordinary income.
The study of all aspects related to profit led to the understanding that the profit calculated in accounting does not reflect the actual result of economic activity. This led to the distinction between the concepts of accounting and economic profit. The first is the result of the sale of goods and services, the second is the result of the "work" of capital. Analyzing various interpretations of profit, the following definition can be formulated.
Profit - this is the part of the added value that is created as a result of the sale of products (goods), the performance of work, and the provision of services.
Profit, as an economic category, reflects the net income created in the sphere of material production in the process of entrepreneurial activity. The result of the combination of factors of production (labor, capital, natural resources) and the useful productive activity of economic entities is a finished product, which becomes the main product, provided it is sold to the consumer.
At the stage of sale, the value of the commodity is revealed, including the value of past materialized labor and living labor. The value of living labor reflects the newly created value and falls into two parts:
The first is wages workers involved in the production of products. Its value is determined by a number of factors due to the need to reproduce the labor force. In this sense, for the entrepreneur, it represents part of the cost of production.
The second part of the newly created value reflects the net income that is realized only as a result of the sale of products, which means public recognition of its usefulness.
At the enterprise level, in terms of commodity-money relations, net income takes the form of profit. In the market of goods, enterprises act as relatively isolated producers. Having established a price for a product, they sell it to the consumer, while receiving cash proceeds, which does not mean making a profit. To identify the financial result, it is necessary to compare the proceeds with the costs of production and sale, which take the form of the cost of production.
When revenue exceeds cost, the financial result indicates a profit. An entrepreneur always sets profit as his goal, but not always gets it. If the revenue is equal to the cost price, then it was possible only to reimburse the costs of production and sales of products. When sold without losses, there is no profit as a source of production, scientific, technical and social development. At costs exceeding revenue, the company receives losses - a negative financial result, which puts it in a rather difficult financial position, which does not exclude bankruptcy.
1. Profit is a criterion and indicator of the efficiency of the enterprise. But it is impossible to assess all aspects of an enterprise's activities using profit. There cannot be such a universal indicator. That is why a system of indicators is used in the analysis of production, economic and financial activities of an enterprise.
2. Profit has a stimulating function. Acting as the final financial and economic result of enterprises, profit acquires a key role in the market economy. The status of the goal is assigned to it, which predetermines economic behavior economic entities whose well-being depends both on the amount of profit and on the mechanism of its distribution adopted in the national economy, including taxation.
Profit in a market economy is the driving force and source of renewal of production assets and products. The share of net profit remaining at the disposal of the enterprise after taxes and other mandatory payments must be sufficient to finance the expansion production activities, scientific, technical and social development of the enterprise, material incentives for employees.
3. Profit is a source of formation of budget revenues different levels... It comes to the budgets in the form of taxes, as well as economic sanctions, and is used to finance joint public needs, ensure the fulfillment by the state of its functions, state investment, production, scientific, technical and social programs.
In Russian practice, the following definitions are used: gross profit, balance sheet profit, net profit, profit remaining at the disposal of the enterprise, profit tax, etc. These definitions are not normatively fixed and can be used in a variety of contexts.
The final financial result of the economic activity of the enterprise is the balance sheet profit.
Balance sheet profit - it is the sum of income (expenses) of the enterprise both from the sale of products and from income (expenses) not related to its production and sale. Balance sheet profit as the final financial result is revealed on the basis of accounting for all business transactions and the assessment of balance sheet items. The use of this term is due to the fact that the final financial result of the work is reflected in its balance sheet, compiled at the end of the quarter, year. Balance sheet profit includes three consolidated elements:
Profit from the sale of products, performance of work, provision of services- this is the financial result obtained from the main activity of the enterprise, which can be carried out in any form, fixed in its charter and not prohibited by law. Profit from the sale of products (works, services) characterizes the net income generated at the enterprise. It is equal to the difference between the proceeds from the sale of products (works, services) in current prices and the costs of their production and sale.
Revenue is taken into account without value added tax and excise taxes, which, being indirect taxes, go to the budget. The amount of mark-ups (discounts) received by trade and supply-and-sales enterprises involved in the sale of products is also excluded from the proceeds. Enterprises exporting products also exclude export tariffs allocated to the state revenue. At the same time, cash receipts associated with the disposal of fixed assets, tangible (circulating) and intangible assets, the sales value of currency values, securities are not included in the proceeds.
The composition of the costs of production and sale of products (works, services) included in the cost price is regulated by law. The costs that form the cost are grouped according to the following elements: material costs, labor costs, social deductions, depreciation of fixed assets, etc.
For the sale of products that have a natural-material form, the calculation of profit is based on the proceeds and the total cost of products, determined by the volume of products sold. In kind, it includes residues finished products at the beginning of the reporting period, not sold in the previous period, and the release of marketable products of the reporting period minus that part of the products that cannot be sold at the end of the reporting period. The composition of the balances of unsold products at the beginning and end of the period depends on the method of revenue accounting chosen by the enterprise - on the receipt of money to the settlement account (cash desk) of the enterprise or on the shipment of products.
Profit from the performance of work and the provision of services is calculated in the same way as the profit from the sale of products.
Profit from the sale of fixed assets, their other disposal, the sale of other property of the enterprise - this is a financial result not related to the main activities of the enterprise. It reflects the profit (loss) on other sales to which the sale belongs different types property on the balance sheet of the enterprise.
The company independently disposes of the property itself. It has the right to write off, sell, liquidate, transfer buildings, structures, equipment, transport and other fixed assets, material values obtained in the process of demolition and dismantling of buildings, structures to the authorized capital of other enterprises, sell individual objects, inventory values and other types of property ... The financial result takes place only upon the sale of the listed types of property, as well as upon other disposal of under-depreciated objects in some cases.
When selling fixed assets, the financial result is determined as the difference between the selling price sold to the side of fixed assets and their residual value, taking into account the costs incurred for their sale.
Other property of the enterprise means raw materials, materials, fuel, spare parts, intangible assets (patents, licenses, trade marks, software products for computers, etc.), currency values (foreign currency, securities in foreign currency, precious metals and natural precious stones, except for jewelry and household products), securities. The difference between the selling price of these types of assets of the enterprise and their carrying amount (taking into account the costs incurred in this connection) is the financial result, which affects the amount of the carrying profit.
Financial results from non-operating transactions - this is profit from operations of various nature that are not related to the main activity of the enterprise and are not associated with the sale of products, fixed assets, other property, performance of work, provision of services. The financial result is defined as income (losses) less expenses on non-operating transactions.
The list of non-operating profits (losses) of the enterprise is heterogeneous and rather extensive. A significant proportion can be income from long-term and short-term financial investments and income from property lease (if this is not the main activity of the enterprise).
Financial investments mean such placement of the company's own funds in the activities of other enterprises, which makes it possible to receive income. Long-term financial investments are understood as the costs of the enterprise for the contribution of funds to the authorized capital of other enterprises (partnerships, joint-stock companies), the acquisition of shares and other securities, and the provision of loans for a period of more than a year. The forms of short-term financial investments include the purchase of short-term treasury bonds, bonds and other securities, the provision of funds on loans for a period of less than a year. Monetary or other property of the parties to a joint venture agreement without forming a legal entity for this purpose are also considered financial investments - long-term or short-term, depending on the term of the agreement, therefore, income from them is also included in non-operating income.
Income from equity participation in the authorized capital of another enterprise represents part of its net profit, which goes to the founder in a predetermined amount or in the form of dividends on shares owned by the founder. Rental income is generated from the rent received, which the lessee pays to the lessor.
Non-operating profits (losses) also include the balance of received and paid fines, penalties, penalties and other types of sanctions (except for sanctions paid to the budget and a number of extra-budgetary funds in accordance with the law); other income and expenses.
These incomes include:
Profit of previous years revealed in the reporting year;
Income from revaluation of goods;
Receipts of amounts for the repayment of receivables written off in previous years at a loss;
Positive exchange rate differences on foreign currency accounts and operations in foreign currency;
Interest received on cash held in the accounts of enterprises.
Costs and losses include:
Losses on transactions of previous years, revealed in the reporting year, from markdowns of goods, write-off of bad accounts receivable;
Lack of material assets identified during the inventory;
Costs for canceled production orders and for non-production production, excluding losses reimbursed by customers;
Negative exchange rate differences on foreign currency accounts and operations in foreign currency;
Uncompensated losses from natural disasters, taking into account the costs of preventing or eliminating the consequences of natural disasters (this excludes the cost of scrap metal, fuel, and other materials received);
Uncompensated losses as a result of fires, accidents, other emergency events caused by extreme situations;
Costs for the maintenance of mothballed production facilities and facilities, excluding costs reimbursed from other sources;
Legal costs and arbitration fees, etc.
In a market economy, the importance of profit is enormous. The desire to obtain it orients commodity producers to increase the volume of production of goods needed by the consumer, to reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. For an entrepreneur, profit is a signal indicating where the greatest increase in value can be achieved, and creates an incentive to invest in these areas. Losses also play a role. They highlight mistakes and miscalculations in the direction of funds, organization of production and marketing of products.
Economic instability and the monopoly position of commodity producers distort the formation of profits as net income, and lead to the desire to obtain income mainly as a result of price increases. The financial recovery of the economy, the development of market pricing mechanisms, and an optimal tax system contribute to the elimination of the inflationary content of profits. These tasks must be fulfilled by the state in the course of economic reforms.
Sources of profit
In the conditions of market relations, an enterprise should strive, if not to maximize profit, then at least to that amount of profit that would allow it not only to firmly hold its positions in the market for its goods and services, but also to ensure its dynamic development. production in a competitive environment. Ultimately, this presupposes knowledge of the sources of profit formation and finding methods for the best use of them.
There are three main sources of profit:
1. The first source is formed due to the monopoly position of the enterprise for the production of a particular product or the uniqueness of the product. Keeping this source at a relatively high level implies constant product updates. Here, one should take into account such opposing forces as antimonopoly policy of the state and growing competition from other enterprises.
2. The second source is directly related to industrial and entrepreneurial activities. Practically it applies to all enterprises. The effectiveness of its use depends on knowledge of the market situation and the ability to adapt the development of production to it. It all comes down to doing the right marketing here.
The amount of profit in this case depends, firstly, on the correct choice of the production direction of the enterprise for the production of products (the choice of products that are in stable and high demand); secondly, from the creation of competitive conditions for the sale of their goods and the provision of services (price, delivery time, customer service; after-sales service, etc.); third, on the volume of production (the larger the volume of production, the greater the mass of profit); fourth, from the structure of reducing production costs;
3. The third source comes from the innovative activity of the enterprise. Its use presupposes a constant renewal of manufactured products, ensuring its competitiveness, an increase in sales volumes and an increase in the mass of profits.
Factors affecting the amount of profit
Profit is the main indicator of the break-even operation of the enterprise. It is referred to as indicators of economic effect, but not efficiency, since the absolute amount of profit does not allow judging the return on investment. At the same time, the analysis of the dynamics of the balance sheet profit, the rate of its growth in comparison with the dynamics of the magnitude and growth of net profit is of considerable interest. The results of the analysis may indicate a decrease in the growth rate of net profit in comparison with the balance sheet and vice versa. Useful information can be gleaned from the analysis of the dynamics of the share of net profit in the balance sheet. If the share of net profit grows, then this indicates the optimal amount of taxes paid, the interest of the enterprise in the results of work and effective management.
Profit from the sale of products, works, services occupies the largest share in the structure of the company's balance sheet profit. Its value is formed under the influence of three main factors: the cost of production, the volume of sales and the level of current prices for the products sold.
Production cost is the most important of the above factors. Quantitatively, it occupies a significant share in the price structure, therefore, a decrease in the cost price has a very noticeable effect on the growth of profits, all other things being equal. On the other hand, a decrease in costs on the scale of the national economy of the country indicates the level of management in general and reflects positive processes in the economy.
At many enterprises there are departments of economic services, which analyze the cost of the article by article and find ways to reduce it. But this work is largely devalued by inflation and rising prices for feedstock and fuel and energy resources. In conditions of a sharp rise in prices and a lack of own circulating assets of enterprises, the possibility of an increase in profits as a result of a decrease in the cost price is excluded.
Increase sales volume in kind, all other things being equal, leads to an increase in profits. Increasing volumes of production of goods in demand can be achieved with the help of capital investments, which requires directing profits to the purchase of more productive equipment, the development of new technologies, and the expansion of production. This path is now difficult or almost impossible for many enterprises due to inflation, rising prices and the inaccessibility of long-term credit. Enterprises that have the means and opportunities for capital investments actually increase their profits if they provide a return on investment above the inflation rate.
The acceleration of the turnover of circulating assets, which also leads to an increase in the volume of production and sales of products, does not require capital expenditures. However, inflation quickly devalues working capital, enterprises direct an increasing part of them to purchase raw materials and fuel and energy resources, non-payment of buyers and the required prepayment distract a significant part of funds from buyers' turnover. The reasons for non-payments are not only a lack of working capital and an unstable financial position of enterprises, but also low financial and accounting discipline, shortcomings in the banking system, and the underdevelopment of bill circulation.
The company's profit is growing at a high rate, mainly due to the rise in prices. The average monthly growth rate, exceeding the price growth rate, testifies to the inflationary nature of the formation of the received profit. With an increase in production costs and a decrease in the volume of its output, the profit grows due to constantly rising prices. The increase in price is not in itself a negative factor. It is quite reasonable if it is associated with an increase in demand for products, improvement of technical and economic parameters and consumer properties of products.
Since the profit from the sale of products occupies the largest share in the structure of the balance sheet profit, the analysis of the factors that determine it is important for identifying the reserves for the growth of the entire balance sheet profit.
Under stable economic conditions of management, the main way to increase profits from product sales is to reduce the cost in terms of material costs. This is especially important for manufacturing enterprises (mechanical engineering and metalworking, metallurgical, petrochemical), where the share of the cost of raw materials in the cost price is significantly higher than at similar enterprises in developed countries.
In the extractive industries, it is quite difficult to ensure profit growth by reducing the cost of mining minerals due to natural causes. This can mainly be achieved by increasing production volumes.
In consumer-oriented industries, demand-driven production and sales volumes and cost levels are critical, but without compromising the quality of consumer goods.
The amount of profit from sales of products is affected by the composition and size of unrealized balances at the beginning and end of the reporting period. A significant amount of balances leads to incomplete receipt of proceeds and a shortage of expected profits. Remains of unsold products are formed for the following reasons:
Part of the finished product naturally settles in the warehouse due to the need for its assembly, packaging, preparation for shipment, accumulation up to the size of the transport batch, and the issuance of settlement documents;
Remains of shipped goods, the due date of which has not come, may be formed when using certain forms of calculation. Full prepayment of shipped products excludes the formation of such balances and is practiced by many enterprises, but as a form of payment, it has its drawbacks;
The products were shipped and received by the buyer, but the latter legally refused to pay for it. The most likely reason for refusal may be the supplier's failure to comply with the terms of the supply agreement.
The reserve for increasing the balance sheet profit can be the profit received from the sale of fixed assets and other property of the enterprise. Previously, operations related to the disposal of fixed assets did not have a significant impact on financial results. However, now, when the enterprise has the right to dispose of its property, it makes sense to get rid of unnecessary and uninstalled equipment, having previously weighed what is more profitable - to sell it or lease it. Other transactions, such as the gratuitous transfer of fixed assets to an enterprise, are not included in the balance sheet profit, but are recovered from the net profit held for accumulation.
The financial result from the sale of other property can be both positive and negative. It depends on the composition and the selling price of the assets being sold. If we are talking about tangible assets, then one should proceed not only from the possibility of making a profit, but how much from the availability of reserves that, due to changes in the economic situation, the range of products and for other reasons, are unnecessary or exceed the level sufficient for the planned output of products. ...
Profit can be obtained from the sale of intangible assets that are in demand in the market. For the purpose of calculating profit, the selling price excludes the costs associated with the creation or purchase of intangible assets, taking into account the costs of bringing them to a state in which they are capable of generating income.
Securities are acquired by an enterprise for different purposes: the enterprise, quickly converting them into money, can make payments and settlements, and repay obligations. It is possible to purchase securities only if there is reasonable confidence in the growth of their market value, then their sale will give a positive financial result. With a fall in market value, it is almost impossible to sell these securities, and in the absence of income on them, such an investment of funds can be considered not assets, but losses.
2. Profit planning methods
Direct counting method
The most important role of profit, which increases with the development of entrepreneurship, determines the need for its correct calculation. The successful financial and economic activity of the enterprise will depend on how reliably the planned profit is determined.
Profit planning is carried out separately for all types of activities of the organization:
From the sale of commercial products;
From the sale of other products and services of a non-commercial nature;
From the sale of fixed assets and other property;
From non-operating income and expenses.
Separate planning is due to differences in the methodology for calculating and taxing profits from various activities. In the process of developing financial plans, all factors affecting the amount of profit are taken into account, and financial results from the adoption of various management decisions are modeled. Consider the main methods of planning profits from the sale of commercial products.
Direct counting method - it is based on the assortment calculation of profits from the production and sale of products. Profit is calculated as the difference between the proceeds from the sale of products in the corresponding prices and its full cost net of VAT and excise taxes.
The volume of proceeds and the total cost of products sold are determined taking into account the carry-over of finished products at the beginning and end of the planning period. To calculate the profit from the sale of products according to the consolidated method, a universal formula is used:
The volume of products sold, calculated at sales prices and at full cost;
Remains of finished products in the warehouse at the beginning and end of the planning period;
The volume of commercial output calculated in two estimates.
After that, the sales profit is calculated as the difference between price and cost: 
, where
Proceeds from product sales;
Cost of goods sold.
Calculation of profit using the direct account method is simple and affordable. However, it does not allow us to reveal the influence of individual factors on the planned profit, and with a large range of products it is very laborious.
Analytical method
The analytical method of planning profit is used with minor changes in the range of products. This method is applicable in the absence of inflationary increases in prices and costs. Its advantage is that it allows you to determine the influence of individual factors on the planned profit. Profit is determined not for each type of product produced in the planned year, but for all comparable products as a whole. The calculation of profit using the analytical method consists of three stages:
1. Determination of baseline profitability 
, where
Expected profit for the reporting period;
The total cost of marketable products in the base year.
2. Calculation of the volume of commercial products in the planning period at the cost of the reporting year and determination of the profit on commercial products based on the basic profitability;
3. Taking into account the influence of various factors on the planned profit: reducing (increasing) the cost of production, improving its quality, changing the assortment, etc.
The profit plan for the next year is developed at the end of the reporting period. Therefore, to determine the baseline profitability, accounting data for the elapsed time (usually for nine months) and the expected implementation of the plan for the period remaining until the end of the year (for the IV quarter) are used.
Profit in the reporting period is taken in accordance with the level of prices in effect at the end of the year. Therefore, if during the past year there were changes in prices or rates of value added tax and excise taxes that affected the amount of profit, then they are taken into account when determining the expected profit for the entire reporting period, regardless of the time of the changes. If, for example, prices have been increased since October 1 of the reporting year, then this increase should be extended to the entire period until October 1, since otherwise the level of profitability of the reporting year will not be able to serve as the baseline for the planned one.
Based on the level of basic profitability found in this way and the planned volume of commercial products, the profit of the planned year is calculated at the cost of the reporting year, taking into account the influence of one factor - changes in the volume of comparable commercial products.
The advantage of this method is that it allows you to determine the influence of individual factors on the planned profit, but only in the presence of stable business conditions.
Efficiency-based method operating lever
This profit planning method is based on the principle of dividing costs into fixed and variable costs. With their help it is calculated margin profit- additional profit received from the growth in the volume of proceeds from sales at unchanged conditionally fixed costs. ...
Notional variable costs are deducted from the proceeds from the sale of products and a marginal profit is obtained. Further, conditionally fixed costs are deducted from the marginal profit and the financial result (profit or loss) is determined.
To do this, you need to find a break-even point. Break even - this is the amount of revenue at which the company receives neither profit nor loss (Fig. 1).
Fig. 1. Determining the break-even point
Three main lines show addiction variable costs, fixed costs and proceeds from the volume of production. The point of critical volume of production shows the volume of production at which the amount of proceeds from sales is equal to its full cost.
After determining the break-even point, profit planning is based on the effect of operating leverage, i.e. the margin of financial strength at which the company can afford to reduce the volume of sales without leading to a loss. The effect of operating leverage is that any change in the sales proceeds results in an even larger change in profit. The effect of this effect is associated with the disproportionate impact of conditionally constant and conditionally variable costs on the financial result when the volume of production and sales changes. The higher the share of conditionally fixed costs in the cost of production, the stronger the effect of operating leverage. Conversely, with an increase in sales, the proportion of fixed costs in the cost price falls, and the impact of operating leverage decreases.
The method of exposure to operating leverage in modern conditions is widely used in profit planning. It opens up the opportunity for entrepreneurs to plan for the future the size of the increase in profits depending on economic success in the production of competitive products and take appropriate measures in advance to change the value of variable and fixed costs in one direction or another.
3. Distribution and use of profits in the enterprise
The mechanism of the influence of finance on the economy, on its economic efficiency, is not in production itself, but in distributional money relations. The nature of their impact on production depends on how a particular distribution system, forms and methods of its organization correspond to the objective needs of society, the level of development of productive forces, the economic interests of the state, enterprises and each individual worker.
The distribution of profits is an integral and inseparable part of the general system of distribution relations. Specific forms and methods of distribution of profits are constantly changing and developing with growth social production and with the changing challenges facing the economy.
In essence, profit distribution should be viewed in three directions (Fig. 2).
The distribution object is the balance sheet profit of the enterprise. Its distribution refers to the direction of profit to the budget and by items of use at the enterprise. The distribution of profits is legally regulated in the part that goes to the budgets of different levels in the form of taxes and other mandatory payments. Determination of the directions of spending the profit remaining at the disposal of the enterprise, the structure of the articles of its use is in the competence of the enterprise.
The principles of profit distribution can be formulated as follows:
The profit received by the enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise;
The profit for the state goes to the respective budgets in the form of taxes and fees, the rates of which cannot be arbitrarily changed;
The amount of the enterprise's profit remaining at its disposal after paying taxes should not reduce its interest in increasing the volume of production and improving the results of production, economic and financial activities;
The profit remaining at the disposal of the enterprise is primarily directed to accumulation, ensuring its further development, and only in the rest - to consumption.
At the enterprise, the distribution is subject to the net profit, i.e. profit remaining at the disposal of the enterprise after taxes and other mandatory payments. The distribution of net profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.
In modern economic conditions, the state does not establish any standards for the distribution of profits, but through the procedure for granting tax incentives it stimulates the direction of profits for capital investments of a production and non-production nature, for charitable purposes, financing of environmental measures, expenses for maintaining facilities and institutions of the social sphere.
The distribution of net profit is one of the directions of intra-firm planning, the importance of which is growing in a market economy. The procedure for the distribution and use of profits at the enterprise is fixed in the charter of the enterprise and is determined by the regulation, which is developed by the relevant departments of economic services and approved by the governing body of the enterprise. In accordance with the charter of the enterprise, estimates of expenses financed from profit can be drawn up, or funds can be formed special purpose: accumulation funds (production development fund or production, scientific and technical, social development fund) and consumption funds (material incentive fund).
The estimate of expenses financed from profit includes expenses for the development of production, for the social needs of the labor collective, for material incentives for employees and charitable purposes.
The costs associated with the development of production include the costs of research, design, engineering and technological work, financing the development and development of new types of products and technological processes, costs of improving technology and organization of production, modernization of equipment, costs associated with technical re-equipment and reconstruction of existing production, expansion of enterprises. This group also includes the cost of repaying long-term loans from banks and interest on them. Contributions of enterprises from profits as contributions of founders to the creation authorized capital other enterprises, funds transferred to unions, associations, concerns, which include the enterprise, are also considered the use of profits for development.
The distribution of profits for social needs includes the costs of operating social facilities on the balance sheet of the enterprise, financing the construction of non-production facilities, organizing and developing subsidiary agriculture, conducting recreational and cultural events.
The costs of material incentives include one-time incentives for the fulfillment of especially important production tasks, the payment of bonuses for the creation, development and implementation of new equipment, the cost of providing material assistance to workers and employees, one-time benefits to retiring labor veterans, supplements to pensions.
All profit remaining at the disposal of the enterprise is divided into two parts. The first part increases the property of the enterprise and participates in the accumulation process, the second characterizes the share of profit used for consumption. At the same time, it is not necessary to use all the profits directed to accumulation in full. The remainder of the profit not used to increase the property has a reserve value and can be used in subsequent years to cover possible losses and finance various costs.
The presence of retained earnings increases the financial stability of the enterprise, indicates the availability of a source for further development.
II Calculated part
Estimate I production costs of a limited liability company
Table 1
| P. No. | Cost item | Estimate option | |
| 1.2. | |||
| just for a year | incl. For the IV quarter | ||
| 1 | 2 | 3 | 4 |
| 1 | Material costs (excluding returnable waste) | 33000.00 | 8250.00 |
| 2 | Labor costs | 17440.00 | 4360.00 |
| 3 | Depreciation of fixed assets * | 1981.00 | 495.00 |
| 4 | Other expenses - total, * including: | 5914.00 | 1479.00 |
| 4.1. | a) payment of interest for a short-term loan | 360.00 | 100.00 |
| 4.2 | b) taxes included in the cost, * including: | 5294.00 | 1324.00 |
| 4.2.1. | unified social tax (26%) * | 4534.00 | 1134.00 |
| 4.2.2. | other taxes | 760.00 | 180.00 |
| 4.3. | c) rent payments and other expenses | 260.00 | 65.00 |
| 5 | Total production costs * | 58335.00 | 14584.00 |
| 6 | Charged to non-production accounts | 715.00 | 267.00 |
| 7 | Gross product costs * | 57620.00 | 14405.00 |
| 8 | Change in work in progress * | 404.00 | 101.00 |
| 9 | Change in balances of deferred expenses | 20.00 | 5.00 |
| 10 | Production cost of commercial products * | 57196.00 | 14299.00 |
| 11 | Non-production (commercial) expenses | 5266.00 | 1413.00 |
| 12 | Full cost of marketable products * | 62462.00 | 15616.00 |
| 13 | Commercial products at selling prices (excluding VAT and excise taxes) | 88000.00 | 24000.00 |
| 14 | Profit for the release of marketable products * | 25538.00 | 6385.00 |
| 15 | Costs per ruble of marketable products * | 0.71 | 0.18 |
We fill in the table. 1. All credits for the IV quarter are calculated by dividing “Total by the year” by 4.
p. 3 - calculated in table 3.
p.4.1. ESN = 17440 * 26% = 4534
p.4.2. Taxes included in the cost price = UST + other taxes = 4534 + 760 = 5294
p. 4 = 360 + 5294 + 260 = 5914
item 5 Total production costs = Mat. Costs + wages + depreciation + other costs = 33000 + 17440 + 1981 + 5914 = 58533
item 7 Costs for gross output = 58335-715 = 57620
clause 8 - calculated in table. ten
p.10 Production cost = Cost of gross production - balances of future periods - change in the balances of work in progress = 57620-404-20 = 57196
item 12 Full cost price = item 10 + selling expenses = 57196 + 5266 = 62462
p.14 Profit on the output of commercial products = commercial products in selling prices - item 12 = 88000-62462 = 25538
item 15 Costs per 1 ruble of commercial products = item 12 / item 13 = 62,462 / 88,000 = 0.71
table 2
Data for the calculation of depreciation deductions for fixed assets
The cost of fixed assets, which are depreciated at the beginning of the year, is 15530 thousand rubles.
The average annual cost of fully depreciated equipment (in current prices) is 1,030 thousand rubles. The weighted average rate of depreciation charges is 14%.
Table 3
Calculation of the planned amount of depreciation and its distribution
| P. No. | Index | Amount, thousand rubles |
| 1 | Cost of depreciable fixed assets at the beginning of the year | 15530.00 |
| 2 | Average annual cost of fixed assets introduced | 3717.00 |
| 3 | Average annual cost of retired fixed assets | 4067.00 |
| 4 | Average annual cost of fully depreciated equipment (in current prices) | 1030.00 |
| 5 | Average annual cost of depreciated fixed assets (in current prices) - total | 14150.00 |
| 6 | Average depreciation rate | 0.14 |
| 7 | Amount of depreciation deductions - total | 1981.00 |
| 8 | The use of depreciation charges for the cap. attachments | 1981.00 |
item 1 - data of table 2 - 15530
item 2 = ((4100 * (12-2)) / 12) + ((3600 * (12-11)) / 12) = 3417 + 300 = 3717
item 3 = ((6360 * (12-5)) / 12) + ((1070 * (12-8)) / 12) = 3710 + 357 = 4067
item 4 - data of table 2 - 1030
p. 5 = 15530 + 3717-4067-1030 = 14150
item 7 = 14150 * 14% = 1981
Table 4
Data for calculating sales and profits
| P. No. | Index | estimate option 1.2. |
| 1 | 2 | 3 |
| 1 | ||
| 1.1. | 2500.00 | |
| 1.2. | 1950.00 | |
| 2 | ||
| 2.1. | a) in days of stock | 7 |
| 2.2. | b) in current prices (excluding VAT and excise taxes) * | 1867.00 |
| 2.3. | c) by production cost* | 1112.00 |
| Other income and expenses | ||
| 3 | Proceeds from the sale of retired property | 7600.00 |
| 4 | Income received from securities (bonds) | 940.00 |
| 5 | Profit from equity participation in the activities of other enterprises | 866.00 |
| 6 | Expenses from the sale of retired property | 5340.00 |
| 7 | Percentage to be paid* | 576.00 |
| 8 | Banking fees | 70.00 |
| 9 | Income from other operations | 10960.00 |
| 10 | Expenses on other operations | 9100 |
| 11 | 1504 | |
| 12 | Maintenance of social facilities - total, * including: | 1220 |
| 12.1. | a) health care institutions | 200 |
| 12.2. | b) preschool institutions | 730 |
| 12.3. | c) the maintenance of the boarding house | 290 |
| 13 | R&D costs | 200 |
* Define
p.2.2. = Commercial products in selling prices * p. 2.1./90=24000*7/90= 1867;
p.2.3. = Production cost * p. 2.1./90= 1112;
p. 7. from Table 8 - 576;
item 12 = item 12.1 + 12.2 + 12.3 = 200 + 730 + 290 = 1220.
Table 5
Calculation of the volume of products sold and profits
| P. No. | Index | Amount, thousand rubles |
| 1 | 2 | 3 |
| 1 | Actual balances of unsold products at the beginning of the year | |
| 1.1. | a) in prices of the base year excluding VAT and excise taxes | 2500.00 |
| 1.2. | b) at production cost | 1950.00 |
| 1.3. | c) profit | 550.00 |
| 2 | Release of marketable products (performance of work, provision of services) | |
| 2.1. | 88000.00 | |
| 2.2. | b) at full cost | 62462.00 |
| 2.3. | c) profit | 25538.00 |
| 3 | Planned balances of unsold products at the end of the year | |
| 3.1. | a) in days of stock | 7 |
| 3.2. | b) at current prices excluding VAT and excise taxes | 1867.00 |
| 3.3. | c) at production cost | 1112.00 |
| 3.4. | d) profit | 755.00 |
| 4 | Product sales volume in the planned year | |
| 4.1. | a) at current prices excluding VAT and excise taxes | 88633.00 |
| 4.2. | b) at full cost | 63300.00 |
| 4.3. | c) profit from the sale of marketable products (works, services) | 25333.00 |
Table 6
Capital construction indicators
Table 7
Data for calculating the need for working capital
| P. No. | Index | Estimate option |
| 1 | 2 | 3 |
| 1 | Change in deferred expenses | 20.00 |
| 2 | Increase in stable liabilities | 230.00 |
| 3 | Standard at the beginning of the year: | |
| 3.1. | Productive reserves | 3935.00 |
| 3.2. | Unfinished production | 236.00 |
| 3.3. | Future expenses | 15.00 |
| 3.4. | Finished products | 501.00 |
| 4 | Stock rates in days: | |
| 4.1. | Productive reserves | 45 |
| 4.2. | Unfinished production | 4 |
| 4.3. | Finished goods | 7 |
Table 8
Calculation of funding sources cap. investments, thousand rubles
| P. No. | A source | Capital investments for industrial purposes | Non-production capital investments | |
| 1 | 2 | 3 | 4 | |
| 1 | Budget appropriations | |||
| 2 | Profit directed to cap. attachments | 2750.00 | 2250.00 | |
| 3 | Depreciation deductions for fixed assets | 1981.00 | ||
| 4 | Planned savings according to the estimate for construction and installation works, carried out by the economic method | 329.00 | ||
| 5 | Proceeds of funds for housing construction in the manner of equity participation | 710.00 | ||
| 6 | Other sources | |||
| 7 | Long-term bank loan | 3040.00 | 160.00 | 3200.00 |
| 8 | Total investments in non-current assets | 8100.00 | 3120.00 | |
| 9 | Interest on the loan payable (at a rate of 18% per annum) | 547.00 | 29.00 | 576.00 |
p.4 Planned savings according to the estimate for construction and installation work = the volume of construction and installation work performed by households. way * rate of plans. savings = 3500 * 9.41% = 329;
clause 7 Long-term loan = cap. production costs destination - profit per cap. investments - depreciation - plans. deductions for the estimate for construction and installation work = 8100 - 2750 - 1981 - 329 = 3040;
Long-term loan = cap. non-production costs. destination - profit - receipts of funds for housing. construction = 3120 - 2250 - 710 = 160;
clause 9 we find 18% of the size of the long-term loan:
3040*18% = 547;
Table 9
Profit distribution data
** Independently make a decision on this indicator
Table 10
Calculation of the need for working capital
| P. No. | Expenditures | Standard at the beginning of the year, thousand rubles | Costs IV., Thousand rubles, total | Costs IV., Thousand rubles / day | Stock rates in days | End-of-year ratio, thousand rubles | Increase (+), decrease (-) |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1 | Productive reserves | 3935.00 | 8250.00 | 92 | 45 | 4140 | 205 |
| 2 | Unfinished production | 236.00 | 14405.00 | 160 | 4 | 640 | 404 |
| 3 | Future expenses | 15.00 | NS | NS | NS | 35 | 20 |
| 4 | Finished goods | 501.00 | 14299.00 | 159.00 | 7 | 1113 | 612 |
| 5 | Total | 4687.00 | NS | NS | NS | 5928 | 1241 |
| Sources of growth | |||||||
| 6 | Stable liabilities | 230.00 | |||||
| 7 | Profit | 1011.00 | |||||
Table 11
Data for the calculation of sources of financing for the social sphere and R&D
Table 12
Income statement draft
| P. No. | Index | Amount, thousand rubles |
| 1 | 2 | 3 |
| 1. Income and expenses from ordinary activities | ||
| 1 | Revenue (net) from the sale of products in the planned year | 88633.00 |
| 2 | Cost of products sold in the planned year | 63300.00 |
| 3 | Profit (loss) from sale | 25333.00 |
| 2. Operating expenses and income | ||
| 4 | Interest receivable | 940.00 |
| 5 | Percentage to be paid | 70.00 |
| 6 | Other operating income | 7600.00 |
| 7 | Other operating expenses | 5340.00 |
| 8 | Income from participation in other organizations | 866.00 |
| Total | 3996.00 | |
| 3. Other income and expenses | ||
| 9 | Other income | 10960.00 |
| 10 | Other expenses - total, including: | 12024.00 |
| 10.1. | a) the maintenance of health care institutions | 200 |
| 10.2. | b) the maintenance of preschool institutions | 730 |
| 10.3. | c) the maintenance of the boarding house | 290 |
| 10.4. | d) R&D costs | 200 |
| 10.5. | e) taxes attributable to the financial result | 1504 |
| 10.6. | f) other expenses | 9100 |
| Total | -1064.00 | |
| 11 | Profit (loss) of the planned year | 28265.00 |
Table 13
Income tax calculation
| P. No. | Index | Amount, thousand rubles |
| 1 | 2 | 3 |
| 1 | Profit - total, including: | 28265.00 |
| 1.1. | Profits taxed at a rate of 9% | 866.00 |
| 1.2. | profit taxed at a rate of 20% | 27399.00 |
| 2 | The amount of tax payable at the rate of 20% - total, including: | 5480.00 |
| 2.1. | to the federal budget - 2% | 548.00 |
| 2.2. | to the budget of a constituent entity of the Federation - 18% | 4932.00 |
| 2.3. | to the local budget | |
| 3 | The amount of tax payable at the rate of 9% - total, including: | 173.00 |
| 3.1. | to the federal budget | 17.00 |
| 3.2. | to the budget of a constituent entity of the Federation | 156.00 |
| 3.3. | to the local budget | |
| 4 | The total amount of tax to the federal budget | 565.00 |
| 5 | The total amount of tax to the budget of a constituent entity of the Federation | 5088.00 |
| 6 | The total amount of tax to the local budget | |
| 7 | Total income tax (at rates of 20% and 9%) | 5653.00 |
| 8 | Profit remaining at the disposal of the company after paying income tax (at rates of 20% and 9%) | 22612.00 |
Income tax is calculated in accordance with Article 284 of the Tax Code of the Russian Federation:
The tax rate is set at 20 percent, except for the cases provided for by paragraphs 2-5 of this article. Wherein:
The amount of tax calculated at a tax rate of 2 percent is credited to the federal budget;
The amount of tax calculated at a tax rate of 18 percent is credited to the budgets of the constituent entities of the Russian Federation.
Table 14
Profit distribution for the planned year
| P. No. | Index | Amount, thousand rubles |
| 1 | 2 | 3 |
| 1 | Total profit | 28265.00 |
| 2 | Contributions to the reserve fund | 3000.00 |
| 3 | Cap. investments for industrial purposes (reconstruction of the workshop) | 2750.00 |
| 4 | Cap. investments for non-production purposes (construction of a residential building) | 2250.00 |
| 5 | Contributions to the consumption fund - total, including: | 3020.00 |
| 5.1. | a) to pay material assistance to employees of the enterprise | 1120.00 |
| 5.2. | b) cheaper food in the dining room | 1000.00 |
| 5.3. | c) for payment of remuneration at the end of the year | 900.00 |
| 6 | Increase in working capital | 1011.00 |
| 7 | Tax paid out of profits | 980.00 |
| 8 | Income tax 20% | 5480.00 |
| 9 | Other income tax 9% | 173.00 |
| 10 | Long-term loan repayment | 576.00 |
| 11 | Remaining retained earnings before dividend payment | 9025.00 |
| 12 | Payment of dividends* | 9025.00 |
| 13 | Retained earnings after dividend payment |
Table 15
Checking the consistency of income and expenses
| P. No. | Sales proceeds | Targeted financing | Receipts from parents for the maintenance of children in preschool institutions | Increase in stable liabilities | Operating income | Non-operating income | Accumulations for construction and installation work carried out in an economic way | Releasing the environment from circulation (mobilization) | Obtaining new loans, credits | Profit | Total expenses | |||
| Income | ||||||||||||||
| Expenses | ||||||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 |
| 1 | Expenses | 56025 | 56025 | |||||||||||
| 2 | 13431 | |||||||||||||
| 2.1. | Taxes included in the cost of production | 5294 | 5294 | |||||||||||
| 2.2. | Income tax | 5653 | 5653 | |||||||||||
| 2.3. | Taxes paid on the profit remaining at the disposal of the enterprise | 980 | 980 | |||||||||||
| 2.4. | Tax attributable to financial performance | 1504 | 1504 | |||||||||||
| 3 | Payments from the consumption fund (material assistance, etc.) | 3020 | 3020 | |||||||||||
| 4 | 230 | 1011 | 1241 | |||||||||||
| 5 | Cap. production investments | 1981 | 329 | 3040 | 2750 | 8100 | ||||||||
| 6 | Cap. non-production investments | 710 | 160 | 2250 | 3120 | |||||||||
| 7 | R&D costs | 200 | 200 | 400 | ||||||||||
| 8 | Operating expenses | 5340 | 5340 | |||||||||||
| 9 | other expenses | 9100 | 9100 | |||||||||||
| 10 | Maintenance of social facilities | 100 | 50 | 1220 | 1370 | |||||||||
| 11 | 576 | 576 | ||||||||||||
| 12 | 70 | 70 | ||||||||||||
| 13 | Payment of dividends | 9025 | 9025 | |||||||||||
| 14 | Contributions to the reserve fund | 3000 | 3000 | |||||||||||
| 15 | Profit | 25333 | 3996 | -1064 | 28265 | |||||||||
| 16 | Total income | 88633 | 100 | 50 | 230 | 9406 | 10960 | 329 | 200 | 710 | 3200 | 113818 |
Table 16
Balance of income and expenses (financial plan)
| Line cipher | Sections and balance sheet items | Amount, thousand rubles |
| 1 | 2 | 3 |
| 001 | I. Receipts (cash inflows) | |
| 002 | A. From current activities | |
| 003 | Proceeds from the sale of products, works, services (excluding VAT, excise taxes and customs duties) | 88633 |
| 004 | Other income - total, including: | |
| 005 | earmarked funding | 100 |
| 006 | receipts from parents for the maintenance of children in preschool institutions | 50 |
| 007 | Increase in stable liabilities | 230 |
| 008 | Results for section A | 89013 |
| 009 | B. From investment activities | |
| 010 | Revenue from other sales (excluding VAT) | 7600 |
| 011 | Income from other operations | 10960 |
| 012 | Accumulation for construction and installation work performed in an economic way | 329 |
| 013 | Funds received from customers under R&D contracts | 200 |
| 014 | Funds received as equity participation in housing construction | 710 |
| 015 | Release of funds from circulation | |
| 016 | Results for section B | 19799 |
| 017 | B. From financial activities | |
| 018 | Increase the authorized capital | |
| 019 | Income from financial investments | 1806 |
| 020 | Increase in debt - total, including: | |
| 021 | obtaining new loans, credits | 3200 |
| 022 | bond issue | |
| 023 | Results for section B | 5006 |
| 024 | Total income | 113818 |
| 025 | II. Expenses (cash outflows) | |
| 026 | A. On current activities | |
| 027 | Cost of production of goods sold (excluding depreciation and taxes attributable to cost) | 56025 |
| 028 | Payments to the budget - total, including: | |
| 029 | taxes included in the cost of production | 5294 |
| 030 | income tax, total | 5653 |
| 031 | taxes paid on profits remaining at the disposal of enterprises | 980 |
| 032 | income taxes | 1504 |
| 033 | payments from the consumption fund (material assistance, etc.) | 3020 |
| 034 | Growth of own working capital | 1241 |
| 035 | Total for Section A | 73717 |
| 036 | B. By investment activity | |
| 037 | Investments in fixed assets and intangible assets - total, of which: | |
| 038 | drip industrial investments | 8100 |
| 039 | drip non-production investments | 3120 |
| 040 | R&D costs | 400 |
| 041 | payments for leasing operations | |
| 042 | long-term financial investments | |
| 043 | other sales expenses | 5340 |
| 044 | expenses on other operations | 9100 |
| 045 | maintenance of social facilities | 1370 |
| 046 | ||
| 047 | Total for section B | 27430 |
| 048 | B. By financial activity | |
| 049 | Repayment of long-term loans | 576 |
| 050 | Payment of interest on long-term loans | 70 |
| 051 | Short-term financial investments | |
| 052 | Payment of dividends | 9025 |
| 053 | Contributions to the reserve fund | 3000 |
| 054 | ||
| 055 | Total for section B | 12671 |
| 056 | Total expenses | 113818 |
| 057 | Excess income on expenses (+) | |
| 058 | Excess of expenses over income (-) | |
| 059 | Balance on current activities | 15296 |
| 060 | Investment balance | -7631 |
| 061 | Financial balance | -7665 |
Explanatory note
Let's summarize in a table the structure of income and expenses from various types of activities:
In the structure of income, the main share comes from income from current activities (78% of all income), and all income from core activities consists of revenue (77.8% of the organization's income). A significant part of the income was received from investment activities - 17%. Of these 17%, income from other operations is 15.4%.
In the coming year, the organization planned to attract a loan in the amount of 3200 thousand rubles. at a rate of 18% per annum for investments in non-current assets. The need for a faster loan repayment will depend on the efficiency of the enterprise's use of funds. To do this, we will calculate the efficiency of current activities - this will be the ratio of receipts from current activities to expenses for current activities:
89013/73717= 1,2
This means that each ruble invested in the main activity will generate income of 20 kopecks. for the planned period. The relatively small volume of borrowed funds (3% of all receipts) indicates a low dependence of the enterprise on external financing. The company has the potential for additional attraction of external financial sources, if necessary.
Basically, the organization receives income from its main (current activity), i.e. sale of main products.
In the structure of expenses, a large share is also occupied by expenses from current activities - 64%. The profit received by the enterprise is distributed as follows: taxes - 13,431, deductions to the consumption fund - 3020, reconstruction of the workshop - 8100, construction of a residential building - 3120, repayment of a long-term loan - 576, payment of dividends - 9025 and deductions to the reserve fund - 3000.
The positive balance was provided only by the current activity - +15296 - which is a good indicator that ensures the stability of the enterprise.
A negative balance on investment activities - -7631 shows that the company makes capital investments and finances them, including from income from current activities. The sources of financing capital investments are profits directed to investments in non-current assets, depreciation deductions for fixed assets, planned savings according to estimates for construction and installation work carried out in an economic way, funds for housing construction in the order of equity participation, a long-term bank loan.
The negative balance in financial activities - -7665 arose as a result of the payment of dividends, deductions to the reserve fund of 3000 rubles. to ensure stable operations, as well as to pay interest on a long-term loan. It is necessary to reduce the size of these payments and direct funds to the development of production in order to increase the property of the enterprise.
Conclusion
Profit is one of the key indicators of the success of financial and economic activities. Since there are many factors of its formation, and such are certain types of income and expenses.
It is necessary to focus on the importance of profit for the activities of the enterprise, as well as the state as a whole. Profit should be considered not only from the side of the quantitative nature of its measurement, that is, not only to calculate it correctly (profit is the excess of gross income over gross expenses), but also to be able to handle profit, that is, to use it as one of the main, universal financial indicators for planning and evaluating the economic activities of the company.
It should also be noted that the size of the profit greatly influences the financing of measures for scientific, technical and socio-cultural development, as well as an increase in the wage fund. If the company has a loss, then the financing of these items may be reduced, there will be interruptions in financing, or it may stop altogether. Profit is not only a source of meeting the on-farm needs of enterprises, but is becoming increasingly important in the formation of budgetary resources, off-budget and charitable funds.
The task of public administration, implemented mainly on the basis of taxation, is to maintain the stability of the growth of budget revenues, to promote economic growth in enterprises.
Bibliography
1. Management accounting: Tutorial/ Ed. O.E. Nikolaeva, T.V. Shishkova. - M. URSS, 2002;
2. Financial Management: Textbook / Ed. I.G. Kukukina. - M .: Jurist, 2003;
3. Finance: Textbook / Ed. A.M. Babich, L.N. Pavlova. - M .: FBK-PRESS, 2000;
4. Financial management: cost approach: textbook / Ed. I.V. Ivanova, V.V. Baranova. - M .: Alpina Business Books, 2007
5. Finances of organizations: Textbook for universities / Ed. V.V. Kovalev. - M .: Prospect, 2005;
6. Enterprise Finance: Textbook / Ed. E.I. Borodina, N.V. Kolchina. - M .: Banks and Exchange, 2002;
7. Enterprise Finance: A Textbook for Universities / Ed. N.V. Kolchina, G.B. Pole. - M .: UNITY-DANA, 2000;
8. Enterprise Finance: Textbook / Ed. P.N. Shulyak. - M. Dashkov and K, 2004;
9. Finances of the company: Textbook / Ed. A.M. Kovaleva, M.G. Lapusta, L.G. Bench. - M .: INFRA-M, 2005;
The financial expression of the bulk of the savings that is created by an enterprise of any type of property is profit. The profit structure includes the result achieved through the entrepreneurial activities of the company, and the profit itself is the indicator that most clearly reflects the efficiency of the production process, as well as the quality and volume of manufactured products, the level of costs and the general state of labor productivity. That is why you need to understand what it is, how it is achieved and used correctly.
What is it?
One of the most important indicators characterizing the plan and assessment of the company's economic activities is profit. The profit structure allows funding for various activities aimed at the socio-economic and scientific and technical development of the enterprise, as well as expanding the wages fund of employees. It is necessary to understand correctly that it is not only a source of meeting various on-farm needs of the company, but also gradually gains more and more importance in the field of forming all kinds of budgetary resources, as well as charitable and extra-budgetary funds.
What is structure?
Profit structure is a means of generating income for a business entity. It includes: production, controlled contribution to profit, net profit.
the main goal
In the current conditions of relations in the market, each company should strive to constantly increase its own profits. The profit structure should have such a volume that would allow the company not only to keep its sales position extremely stable own products on the market, but also to achieve dynamic development production processes in the existing conditions of competition.
It is for this reason that any enterprise, before starting the production of goods, is determined by what income promises to carry out certain procedures. In this regard, we can say that the most important task of entrepreneurial activity and, in principle, its end result is profit. The profit structure implies the receipt of income as the most important task of any business entity, and this should be ensured at minimal cost by observing the most stringent saving regime in spending money, as well as the most efficient use of it.
The main source of financial savings of an enterprise is the proceeds received from the sale of a particular product, or rather, specifically, that part of it that will remain when deducting resources for the production and further sale of goods.
Functions and economic essence
V general enterprise is the difference between the income received and its costs.
At the enterprise level, under the current conditions of commodity-money relations, the receipt of net income takes the form of profit, while in the commodity market, companies act as relatively isolated producers of commercial products. By setting a specific price for own goods, they sell it to final consumers, while receiving proceeds in the form of cash, but this is not profit yet.
In order for the structure of the company's profit to be drawn up and a clear financial result determined, the revenue must be compared with the costs allocated for production and sale, since they represent the total cost of a particular product. Only after such calculations have been carried out, it will be possible to work. If the revenue has a greater volume in comparison with the cost price, then the financial result indicates that a certain structure of the company's profit is actually visible. Thus, everyone is trying to achieve exactly this result.
An entrepreneur, when analyzing the structure of profit, sets as the main task the receipt of the maximum amount of net income, but in fact it is not always possible to achieve this. If the revenue is approximately equal to the cost price, then this suggests that in the end it was only possible to reimburse production costs, as well as the costs of selling this product. When an analysis of the profit structure shows that costs exceed revenues, this indicates that the company's work is unprofitable, and a negative financial result is achieved, and in the end, such activities can turn into full-fledged bankruptcy.
Profit from the sale of any product is the difference between the proceeds received after the sale of any product and the cost of the product, including taxes and costs necessary for its sale and production. Accordingly, we can say that the analysis of the structure and dynamics of profit can be carried out when the enterprise receives gross income after the sale of manufactured products at those prices that were formed on the basis of supply and demand. At the same time, gross income, that is, the proceeds from the sale of goods minus the necessary material costs, is a form of the company's net profit.
The more profitable products are sold by a particular organization, the better results will be shown by the analysis of the structure and dynamics of profit and, accordingly, the more stable the financial condition of the company will become. It is for this reason that the results of the work should be studied in an extremely close relationship with the use and sale of various products.
Profit value
The structure of economic profit provides for a lot of its functions:
- The economic effect that is obtained in the course of the activity of a particular enterprise.
- Stimulating function. Profit is both a financial result and a main component financial resources any company. Real security existing principle self-financing is completely determined by the income received.
- A source of budgeting at various levels.
From a practical point of view, profit is a generalizing indicator of the conduct of economic activities of an enterprise, regardless of their form of ownership.
Views
Today it is customary to distinguish two main types - economic and accounting profit. Economic is the difference between the total revenue of the company and all necessary production costs (this includes external and internal), while accounting is the difference between total revenue and various external costs.
In accounting practice, profit and its structure provides for a number of relevant indicators, such as:
- balance sheet profit;
- profit from the sale of various works, goods and services;
- profit from other sales;
- taxable profit;
- financial results obtained from non-operating transactions;
- net profit.
Distribution and use
The composition and structure of profit provides for its distribution and use as one of the most important economic processes, since it allows you to cover the needs of an entrepreneur, as well as to form state revenues.
The distribution mechanism should be formed in such a way as to provide all possible assistance to increase the efficiency of production processes. The object of distribution is the balance sheet income of the enterprise, that is, the structure of sales profit, and its distribution means its direction to the budget, as well as for various articles of application of this company.
Principles
The basic principles in accordance with which it is carried out can be formulated as follows:
- income received by the company from production, economic and financial activities, which are distributed between the state, as well as the enterprise in the role of an economic entity;
- the profit of the state is sent to the relevant budgets, such as taxes and fees, the rate of which cannot be changed arbitrarily, while the composition and rates of taxes, as well as the procedure for calculating them to the budget, should be established by the norms of the current legislation;
- the total volume of the enterprise's profit, which remains at its disposal after taxes have been paid, should not reduce its motivation for further growth in production volume, as well as constant improvement in the results of its financial and production and economic activities;
- the profit that remains at the disposal of the enterprise should be primarily directed to accumulation, which will ensure its further development, and only then to consumption.
Among other things, it is worth noting the fact that the enterprises also distribute net profit, that is, the one that remains at the disposal of the company after the full payment of various taxes and other mandatory payments. Already from it, the collection of sanctions, paid to the budget and all kinds of extra-budgetary funds, is carried out.
Legal regulations
The income remaining at the disposal of the company can be used by it independently or directed to ensure the further development of entrepreneurial activity. No body, including the state, has any right to intervene in the process of how the structure of the company's net profit will be formed and the profits obtained will be used.
Together with the financing of production activities, the income that remains at the disposal of any company can be used to meet any social or consumer needs. Thus, it pays one-time benefits and incentives to people retiring, as well as all kinds of supplements to pensions. Among other things, the structure of profit indicators remaining at the disposal of the enterprise also provides for the product of expenses to pay for various additional vacations beyond the deadline specified by laws, as well as payment of expenses for free or reduced-price meals for employees.
Selected cases
If the company violates the current legislation, the profit (the structure of the profit of the organization should provide for such an item of expenses) can be used to pay off all kinds of sanctions and fines.
If income is withheld from authorized tax authorities or they do not make contributions to various extrabudgetary funds, the company may also be subject to the corresponding penalties, and the main source of payment for them is the resulting net profit.
The distribution of net profit is one of the main directions of intra-company planning. In accordance with the current charter of the enterprise, specialized cost estimates can be drawn up.
The structure of the total profit may provide for the distribution for social needs, which includes various expenses for the operation of specialized social facilities that are on the balance sheet of a given enterprise, holding cultural events and many others.
Splitting into parts
All profit that remains at the disposal of the company is divided into two main elements. The first allows you to increase the property of the enterprise, and also takes a direct part in the accumulation processes. The second characterizes a specific share of the profit that can be used for consumption.
All sorts of changes in the profit structure, which led to the presence of retained income used for accumulation, as well as similar indicators of previous years, indicate that the company is financially stable, and it has a source for further development.
Formation and use
Economic analysis is the most important stage of the work that is carried out before planning and forecasting company resources, as well as their effective use. The profit (loss) structure is studied in several steps:
- The analysis of income by composition in dynamics is carried out.
- The procedure of factor analysis of income from sales is carried out.
- The reasons for any deviations are carefully analyzed for such components as: other interest payable and receivable, non-operating expenses and income.
- The formation of net profit is studied.
- An assessment is given to how effectively the profit is distributed.
- The application of profit is analyzed.
- Proposals are being developed for the preparation of financial plan.
Due to the fact that the structure of profit formation is analyzed in detail, the enterprise develops the most optimal behavior strategy, following which will allow the company to minimize losses and financial risks present when investing any resources in own business... That is why this procedure is so important.
A system of measures aimed at providing conditions for the formation of the required amount of profit and its distribution in accordance with the development plan of the organization.
Features and meaning
Profit planning is the most important procedure for every commercial enterprise. Such measures developed by the company are one of the most important stages of business development. Adhering to the approved tasks for the future, the company tries to get the maximum possible income at the lowest possible costs. Profit formation at the enterprise is aimed at:
- increasing the size of the profitability of the business, taking into account resources, market conditions;
- fulfillment of obligations (loans, government agencies, investors, owners);
- accumulation of capital for modernization, equipment, expansion of the technical base;
- strengthening market positions, increasing competitiveness;
- stimulation of employees, development of corporate values.
The profit planning procedure is a multifaceted process that must take into account many factors. Here it is important to take into account the market conditions, the level of competitiveness, strengths and weak sides companies working in the same area, promising areas of development. When the economy in the country is stable, then planning the level of profitability can be carried out on a long period time, for example, 3 - 5 years.
Effective techniques
Modern business uses several methods to plan its profits. The first direct account technique is used by companies with a small range of products or services. Its calculation is quite simple. Revenue is defined as the difference between the planned revenue received from the sale and the total cost (planned costs). The second method is analytical, which is used by firms with a wide range of products. Its feature is focus on profitability and costs, analysis based on the data of the company for previous periods. When the possibilities of the two methods are applied, they say that the firm uses a complex, that is, a combined method.
Naturally, not all methods of income planning are reflected in the material. The three marked are the most common. Some enterprises use the normative method, the method of extrapolation, assortment planning. Each of them has its own advantages and features. Currently, special software products are widely used. It is convenient to forecast profit in the automated mode.
Method selection
You can most accurately predict the level of profit using special calculation methods. When choosing a method, an enterprise must take into account its relevance for its business, the accuracy of the data that can be obtained when performing calculations. Each company must make adjustments in a timely manner (taking into account changes in the market situation, its activities, etc.)
Stages
Profit planning is carried out in stages. First, the company defines a realistic goal in accordance with strategic plans. The company then predicts sales. It is important to take into account market trends, competitors' activities. The next step is to conduct a cost estimate that shows the amount spent on the planned sales volume. The final stage is the determination of profit. At this stage, the planned gross income, planned operating and net profit, retained earnings are determined.
Planning and distribution of profits .
PLAN
Introduction................................................. .................................................. ........ 3
1. Profit and its role in a market economy ......................................... ............ 5
1.1 The concept of profit as an economic category ...................................... 5
1.2 Sources of profit .............................................. .................... 7
1.3 The concept of balance sheet profit .............................................. ..................... nine
2. Profit planning methods ............................................. ....................... eleven
2.1 Direct counting method, its advantages and disadvantages ............................. 11
2.2 Characteristics of the analytical method of planning profit ............ 14
3. Distribution and use of profits in the enterprise .......................... 16
3.1 Approaches to the distribution of profits in the enterprise ............................. 16
3.2 Profit generation management .............................................. ....... 19
Practical part ................................................ ............................................ 26
Conclusion................................................. .................................................. ...... 36
List of used literature ............................................... .................. 38
Introduction
In a market economy, making a profit is the immediate goal of production. Profit creates certain guarantees for the further existence and development of the enterprise. Each enterprise, before starting production of products, determines what profit, what income it can receive. But economic instability and the monopoly position of commodity producers distort the formation of profits as net income, and lead to the desire to obtain income mainly as a result of price increases. The financial recovery of the economy, the development of market pricing mechanisms, and an optimal tax system contribute to the elimination of the inflationary content of profits. These tasks must be fulfilled by the state in the course of economic reforms.
The purpose of this work is an attempt to find out the essence of profit, to determine its functions in the economy, to identify the sources of its formation.
To achieve this goal, we solved the following tasks:
· Investigated the role of profit in the economy;
· Methods of planning profit were considered;
· Analyzed the ways of using and distributing profits at the enterprise.
The subject of the course work is economic relations regarding the formation and distribution of profits at the enterprise.
The object of the course work is profit as a financial result of the economic activity of the enterprise.
Course work consists of an introduction, main part and conclusion. The introduction substantiates the relevance of the research topic, defines the goal, objectives, subject and object of the research. The main part is devoted to the study of the problem posed. In the conclusion, the main results of the course research are formulated.
1. Profit and its role in a market economy
1.1 The concept of profit as an economic category
Profit as an economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity. The result of the combination of production factors (labor, capital, environmental resources) and the useful production activity of economic entities is a finished product, which becomes a commodity provided it is sold to the consumer.
At the stage of sale, the value of the commodity is revealed, including the value of past materialized labor and living labor.
The value of living labor reflects the newly created value and falls into two parts. The first is the wages of employees. Involved in the production of products. Its value is determined by a number of factors due to the need to reproduce the labor force. In this sense, for the entrepreneur, it represents part of the cost of production. The second part of the newly created value reflects the net income that is realized only as a result of the sale of products, which means social recognition of its usefulness.
At the enterprise level, in terms of commodity-money relations, net income takes the form of profit. In the market of goods, enterprises produce them as relatively separate producers. Having established a price for a product, they sell it to the consumer, while receiving cash receipts, which means making a profit. To identify profit, it is necessary to compare the revenue with the costs of production and sale, which take the form of the cost of production.
When revenue exceeds cost, the entity makes a profit. An entrepreneur always sets profit as his goal, but not always gets it. If the revenue is equal to the cost price, then it was possible only to reimburse the costs of production and sales of products. When sold without losses, there is no profit as a source of production, scientific, technical and social development.
At first, characterizes the economic effect obtained as a result of the activities of the enterprise. The value of profit is that it reflects the final financial result. At the same time, the amount of profit and its dynamics are influenced by factors both dependent and not dependent on the efforts of the enterprise. Almost all spheres of influence of the enterprise are the market conditions, the level of prices for consumed material and raw materials and fuel and energy resources, the norms of depreciation deductions. To a certain extent, such factors as the level of prices for the sale of products and wages, the level of management, the competence of management and managers, the competitiveness of products, the organization of production and labor, its productivity, the state and efficiency of production and financial planning... The listed factors affect the profit not directly, but through the volume of products sold and the cost price.
Secondly, profit has a stimulating function. Its content lies in the fact that it is both the financial result and the main element of the financial resources of the enterprise. The actual provision of the principle of self-financing is determined by the profit received. The share of net profit remaining at the disposal of the enterprise after paying taxes and other mandatory payments should be sufficient to finance the expansion of production activities, scientific, technical and social development of the enterprise, material incentives for employees.
Thirdly, profit is one of the sources of budgeting at different levels. It enters the budgets in the form of taxes and, along with other income receipts, is used to finance the satisfaction of joint social needs, to ensure the fulfillment by the state of its functions, state investment, production, scientific and technical and social programs.
In a market economy, the importance of profit is enormous. The desire to obtain it orients commodity producers to increase the volume of production of goods needed by the consumer, to reduce production costs. With developed competition, this only achieves the goal of entrepreneurship, but also the satisfaction of social needs. For an entrepreneur, profit is a signal indicating where the greatest increase in value can be achieved, and creates an incentive to invest in these areas.
1.2 Sources of profit
In the conditions of market relations, an enterprise should strive, if not to maximize profit, then at least to that amount of profit that would allow it not only to firmly hold its positions in the market for its goods and services, but also to ensure its dynamic development. production in a competitive environment. Ultimately, this presupposes knowledge of the sources of profit formation and finding methods for the best use of them.
As the world practice shows, there are three main sources of profit:
· first the source is formed due to the monopoly position of the enterprise for the production of a particular product and / or the uniqueness of the product. Keeping this source at a relatively high level implies constant product updates. Here, one should take into account such opposing forces as antimonopoly policy of the state and growing competition from other enterprises.
· second the source is directly related to industrial and business activities. Practically it applies to all enterprises. The effectiveness of its use depends on the knowledge of the market conditions and the ability to adapt the development of production to this constantly changing market situation. It all comes down to doing the right marketing here. The amount of profit in this case depends, firstly, on the correct choice of the production orientation of the enterprise for the production of products (the choice of products that use a stable and high poll); secondly, from the creation of competitive conditions for the sale of their goods and the provision of services (price, delivery time, customer service; after-sales service); third, on the volume of production (the larger the volume of production, the greater the mass of profit); fourth, from the structure of reducing production costs.
· third the source comes from the innovation of the enterprise. Its use presupposes a constant renewal of manufactured products, ensuring its competitiveness, an increase in sales volumes and an increase in the mass of profits.
Considering profit as an economic category, we are talking about it in the abstract. But when planning and evaluating the economic and financial activities of the enterprise, the distribution of profits remaining at the disposal of the enterprise, specific indicators are used. A capacious informative indicator is the balance sheet profit.
1.3 The concept of balance sheet profit
Balance sheet profit includes three consolidated elements: profit (loss) from sales of products, performance of work, rendering of services; profit (loss) from the sale of fixed assets, their other disposal, the sale of other property of the enterprise, financial results from non-sale operations.
Let's consider in detail all the components of the balance sheet profit. Profit (loss) from the sale of products (works, services) is the financial result obtained from the main activity of the enterprise, which can be carried out in any form fixed in its charter and not prohibited by law. The financial result is determined separately for each type of activity of the enterprise related to the sale of products, performance of work, provision of services. It is equal to the difference between the proceeds from the sale of products (works, services) in current prices and the costs of their production and sale.
Revenue is taken into account without value added tax and excise taxes, which, being indirect taxes, go to the budget. Also excluded from the proceeds is the amount of mark-ups received by the trade and supply and marketing enterprises involved in the marketing of products. Enterprises exporting products also exclude export tariffs allocated to the state revenue. At the same time, cash receipts associated with the disposal of fixed assets, tangible and intangible assets, the sale value of currency values, securities are not included in the proceeds.
Profit (loss) from the sale of fixed assets, their other disposal, the sale of other property of the enterprise is a financial result that is not related to the main activities of the enterprise. It reflects the profit (loss) on other sales, which includes the sale to the side of various types of property on the balance sheet of the enterprise.
The enterprise independently disposes of its property. It has the right to write off, sell, liquidate, transfer buildings, structures, equipment to the statutory funds of other enterprises. vehicles and other fixed assets, material values obtained in the process of demolition and dismantling of buildings, to sell individual objects, inventories and other types of property. The financial result takes place only in the sale of the listed types of property, as well as in other cases, the disposal of underdamped objects in some cases. When selling fixed assets, the financial result is determined as the difference between the sold price of fixed assets sold to the side and their residual value, taking into account the costs incurred for the sale.
Other property of the enterprise means raw materials, materials, fuel, spare parts, intangible assets (patents, licenses, trademarks, etc.) currency values (foreign currency, precious metals), securities. The difference between the selling price of these types of assets of the enterprise and their carrying amount (taking into account the costs incurred in this connection) is the financial result, which affects the amount of the carrying profit.
Financial results from non-operating transactions are profit (loss) on transactions of various nature that are not related to the main activities of the enterprise and are not related to the sale of products, fixed assets, other property of the enterprise, the performance of work, the provision of services. The financial result is defined as income (losses) less expenses on non-operating transactions.
The list of non-operating profits (losses) of the enterprise is heterogeneous and rather extensive. A significant proportion can be income from long-term and short-term financial investments and income from renting out property (they are included in non-operating profits if renting property is not the main activity of the enterprise).
2. Profit planning methods
2.1 Direct counting method, its advantages and disadvantages
Profit planning is an integral part of financial planning and an important area of financial and economic work in an enterprise. Profit planning is carried out separately for all types of enterprise activities. This not only makes planning easier, but also has implications for the estimated amount of income tax, since some activities are not subject to income tax, while others are subject to higher rates. In the process of developing profit plans, it is important not only to take into account all the factors that affect the amount of possible financial results but also providing maximum profit.
The planning object is the planned elements of the balance sheet profit, mainly the profit from the sale of products, the performance of work, and the provision of services. The basis for the calculation is the volume of the production program, which is based on consumer orders and business contracts.
Profit from the sale of commercial products is the main component of the gross profit of the enterprise, consider the methods of its planning.
Direct counting method is the most common. It is used, as a rule, with a small range of products. In the most general view profit is the difference between price and cost, but when calculating the planned amount of profit, it is necessary to clarify the volume of products from the sale of which this profit is expected. Profit on commodity output is planned on the basis of estimates of the costs of production and sales of products, where the cost of commodity output of the planned period is determined:
P tp = C tp - C tp;
Where P tp- profit on commodity output of the planned period;
C tp- the cost of commodity output of the planned period in current sales prices (excluding value added tax, excise taxes, trade and sales discounts);
With TP- the total cost of marketable products for the planned period (calculated in the estimate of the costs of production and sales of products).
Profit on products sold is calculated differently:
P rn = B phn - C phn,
In ph- the planned proceeds from the sale of products in current prices (excluding value added tax, excise taxes, trade and sales discounts),
P rn- projected profit for products to be sold in the coming period;
With ph- full cost of products sold in the coming period.
Proceeding from the fact that the volume of sold products of the upcoming planning period in physical terms is determined as the sum of the balances of unsold products at the beginning of the planning period and the volume of output of marketable products during the planned period without balances of finished products that will not be sold at the end of this period, then the calculation the planned amount from the sale of products will take the form:
P rp = P o1 + P tp - P o2 ;
WhereП рп - profit from the sale of products in the planned period;
By 1- profit in the balance of products not sold at the beginning of the planning period;
P tp- profit on marketable products planned for release in the coming period;
P o2- profit in the balances of finished products that will not be sold at the end of the planning period.
It is this method of calculation that underlies the application of the enlarged direct method of planning profit, when it is easy to determine the volume of products sold in prices and at cost.
Another variation of the direct account method is the assortment profit planning method. Profit is determined for each assortment item, for which it is necessary to have the appropriate data.
The profit is summed up for all assortment items. The resulting result is added to the profit in the balances of finished products not sold at the beginning of the planning period. After calculating the profit from the sale of products, it is increased by the profit from other sales and the planned non-operating results.
The enlarged direct counting method is applicable at enterprises with a small range of products. The assortment calculation method is used for more than wide range, if the cost is planned for each type of product. The main advantage of the direct counting method at known prices and constant costs during the planning period is its accuracy.
In modern conditions, the economic method of direct account can be used when planning profits only for a very short period of time, until prices, wages and other circumstances have changed. This excludes its use at annual and forward planning arrived. The calculation of profit does not allow us to identify the influence of individual factors on the planned profit and, with a very large range of products, it is very time consuming.
2.2 Characteristics of the analytical method of planning profit
At profit planning analytical method the calculation is carried out separately for comparable and incomparable marketable products.
Comparable products are produced in the base year that precedes the planned one, therefore, its actual cost and production volume are known. Based on these data, you can determine the basic profitability of RB.
RB = (Po: Stp) * 100%,
By- expected profit (profit is calculated at the end of the base year, when the exact amount of profit is not yet known);
Stp- the total cost of marketable products of the base year.
Let's say Po is 100 thousand den. units.,
Stp - 400 thousand den. units.,
Then RB = (100: 400) * 100% = 25%
Using the basic profitability, the profit of the planned year is roughly calculated for the volume of marketable production of the planned year, but at the cost of the base year, but at the cost of the base year.
If the volume of marketable products of the planned year, at the cost price is 500 thousand den. units , then the profit will be approximately equal to: 500 * 25% = 125 thousand den. units This calculation takes into account the influence of the first factor - the volume of production. Further, the calculation is carried out in a certain sequence:
The change (+, -) of the production cost in the planned year is calculated. Suppose, on the basis of a forecast of an increase in raw material prices, an increase in depreciation charges and other factors, the production cost of the planned year will increase by 20 thousand den. units;
The influence of changes in the assortment, quality, grade of products is determined. Such calculations are performed in special tables based on planned data on the range of products, their quality and grade. Let's say the profit will increase due to these factors by 25 thousand den. units;
After justifying the price of finished products for the planned year, the impact of price increases is determined. Let's say an increase in prices for products sold in the coming year can give 30 thousand den. units
The impact on profit of all of the above factors is determined by summing them up. Profit from the production of comparable marketable products in the coming year will be: 125-20 + 25 + 30 = 160 thousand den. units ..;
Now it is necessary to take into account the change in profit in the unrealized balances of finished products at the beginning (10 thousand monetary units) and at the end of the planning period (5 thousand monetary units): 10 + 160-5 = 165 thousand den. units
In contrast to the direct account method, the analytical method of planning profit shows the influence of factors on the amount of profit, but it does not sufficiently take into account the influence of all changing business conditions on financial results and does not ensure their reliability, primarily due to constantly changing business conditions.
3. Distribution and use of profits in the enterprise
3.1 Approaches to the distribution of profits in the enterprise
The distribution object is the balance sheet profit of the enterprise. Its distribution refers to the direction of profit to the budget and by items of use at the enterprise. The distribution of profits is legally regulated in the part that goes to the budgets of different levels in the form of taxes and other mandatory payments. Determination of the directions of spending the profit remaining at the disposal of the enterprise, the structure of the articles of its use is within the competence of the enterprise.
The principles of profit distribution can be formulated as follows:
· The profit received by the enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise as an economic entity;
· Profit for the state goes to the corresponding budget in the form of taxes and fees, the rates of which can be arbitrarily changed. The composition and rates of taxes, the procedure for their calculation and contributions to the budget are established by law;
· The amount of the enterprise's profit remaining at its disposal after paying taxes should not reduce its interest in increasing the volume of production and improving the results of production, economic and financial activities;
· The profit remaining at the disposal of the enterprise is primarily directed to accumulation, ensuring its further development, and only in the rest - to consumption.
The enterprise is subject to distribution net profit, i.e. profit remaining at the disposal of the enterprise after taxes and other mandatory payments. It collects sanctions paid to the budget and some extrabudgetary funds.
The distribution of net profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.
In modern economic conditions, the state does not establish any standards for the distribution of profits, but through the procedure for granting tax incentives it stimulates the direction of profits for capital investments of a production and non-production nature, for charitable purposes, financing of environmental measures, expenses for the maintenance of facilities and institutions of the social sphere, etc. Legislation limits the size of the reserve fund of enterprises, regulates the procedure for forming a reserve for doubtful debts.
The distribution of net profit is one of the directions of intra-firm planning, the importance of which is growing in a market economy. The procedure for the distribution and use of profits at the enterprise is fixed in the charter of the enterprise and is determined by the regulation, which is developed by the relevant departments of economic services and approved by the governing body of the enterprise. In accordance with the charter, enterprises can draw up cost estimates financed from profit, or form special-purpose funds: accumulation funds (production development fund or production and scientific and technical development fund, social development fund) and consumption funds (material incentive fund).
The estimate of expenses financed from profit includes expenses for the development of production, social needs of the labor collective, for material incentives for employees and charitable purposes,
The costs associated with the development of production include the costs of research, design, engineering and technological work, financing the development and development of new types of products and technological processes, costs of improving technology and organization of production, modernization of equipment, costs associated with technical re-equipment and reconstruction of existing production, expansion of enterprises. The same group of expenses includes the costs of repaying long-term bank loans and interest on them. It also plans the costs of environmental measures, etc. Contributions of enterprises from profits as contributions of founders to the creation of the authorized capital of other enterprises, funds transferred to unions, associations, concerns, which include the enterprise, are also considered to be the use of profits for development.
The distribution of profits for social needs includes the costs of operating social facilities on the balance sheet of the enterprise, financing the construction of non-production facilities, organizing and developing subsidiary agriculture, conducting recreational, cultural events, etc.
The costs of material incentives include one-time incentives for the performance of especially important production tasks, the payment of bonuses for the creation, development and implementation of new equipment, the cost of providing material assistance to workers and employees, one-time benefits to retiring labor veterans, allowances to pensions, compensation to workers the rise in the cost of food in canteens, canteens of the enterprise due to price increases, etc.
All profit remaining at the disposal of the enterprise is divided into two parts. The first increases the property of the enterprise and participates in the accumulation process. The second characterizes the share of profit used for consumption. At the same time, it is not necessary to use all the profits directed to accumulation in full. The remainder of the profit not used to increase the property has an important reserve value and can be used in subsequent years to cover possible losses and finance various costs.
Undestributed profits in a broad sense, both profit used for accumulation and retained earnings of previous years indicate the financial stability of the enterprise, the presence of a source of dm for subsequent development.
The distribution and use of the profits of partnerships and joint-stock companies have their own characteristics, due to the organizational and legal form of these enterprises.
3.2 Profit management
Achieving high results of the enterprise's work involves managing the process of generating, distributing and using profits. Management includes profit analysis, planning and a constant search for opportunities to increase profits.
Economic profit- the most important stage of work, preceding the planning and forecasting of the financial resources of the enterprise, their effective use. The results of the analysis serve as the basis for making managerial decisions at the level of enterprise management and are the source material for the day of work of financial managers.
The tasks of analyzing financial results include
Assessment of the dynamics of indicators of balance sheet and net profit;
Study of the constituent elements of the formation of balance sheet profit;
Identification and measurement of the influence of factors affecting profit;
Analysis of profitability indicators;
Identification and assessment of reserves for profit growth, ways to mobilize them.
Analysis of the dynamics of the balance sheet profit, the rate of its growth in comparison with the dynamics of the magnitude and growth of net profit is of considerable interest. The results of the analysis may indicate a decrease in the growth rate of net profit in comparison with the balance sheet, and vice versa. Useful information can be gleaned from the analysis of the dynamics of the share of net profit in the balance sheet. If the share of net profit grows, this indicates the optimal amount of taxes paid, the interest of the enterprise in the results of work and effective management.
Good analytical capabilities are contained in the table compiled according to the data on the value of the balance sheet profit, its constituent parts (profit from the sale of products, works, services; profit from other sales; balance of financial results from non-operating transactions) for a number of years.
Profit from the sale of products, works, services occupies the largest share in the structure of the company's balance sheet profit. Its value is formed under the influence of three main factors: the cost of production, the volume of sales and the level of current prices for the products sold. The most important of these is cost. Quantitatively, it occupies a significant share in the price structure, therefore, a decrease in the cost price has a very noticeable effect on the growth of profits, all other things being equal. The dynamics of the production cost indicator is interesting from another point of view. Reducing costs on the scale of the national economy of the country testifies to the level of management in general and reflects positive processes in the economy.
At many enterprises there are departments of economic services that are engaged in the article-by-article analysis of the cost price, looking for ways to reduce it. But this work is largely devalued by inflation and rising prices for feedstock and fuel and energy resources. In conditions of a sharp rise in prices and a lack of own circulating assets of enterprises, the possibility of an increase in profits as a result of cost reduction is excluded.
The increase in the volume of sales of products in kind, all other things being equal, leads to an increase in profits. Increasing volumes of production of goods in demand can be achieved with the help of capital investments, which requires directing profits to the purchase of more productive equipment, the development of new technologies, and the expansion of production. This path is now difficult or almost impossible for many enterprises due to inflation, rising prices and the inaccessibility of long-term credit. Enterprises that have the means and opportunities for capital investments actually increase their profits if they provide a return on investment above the inflation rate.
The acceleration of the turnover of circulating assets, which also leads to an increase in the volume of production and sales of products, does not require capital expenditures. However, inflation quickly devalues circulating assets, enterprises use more and more of them to purchase raw materials and fuel and energy resources, non-payments of buyers and the required prepayment divert a significant part of funds from buyers' turnover. The reasons for non-payments are not only a lack of working capital and an unstable financial position of enterprises, but also low financial and accounting discipline, shortcomings in the banking system, and the underdevelopment of bill circulation.
In general, Russian enterprises are characterized by a decline in production volumes over the past years.
In this situation, it would seem logical to assume a sharp drop in the mass of profits. But statistics suggest otherwise. With an increase in production costs and a decrease in the volume of its output, profit grows due to constantly rising prices. The increase in price is not in itself a negative factor. It is quite justified if it is associated with an increase in demand for products, improvement of technical and economic parameters and consumer properties of products.
Since the profit from the sale of products occupies the largest share in the structure of the balance sheet profit, the analysis of the factors that determine it is important for identifying the reserves for the growth of the entire balance sheet profit.
Under stable economic conditions of management, the main way to increase profits from product sales is to reduce the cost in terms of material costs. This is especially important for manufacturing enterprises (mechanical engineering and metalworking, metallurgical, petrochemical, etc.), where the share of the cost of raw materials in the cost price is significantly higher than at similar enterprises in developed countries, the weight of waste is significant. In particular, in mechanical engineering, the share of metal waste in the total consumption of ferrous metals has consistently occupied more than 20% for many years, and the share of shavings in the total formation of metal waste is 45%. This also testifies to the use of obsolete equipment.
In the extractive industries, it is quite difficult to ensure profit growth as a result of a decrease in the cost of mining minerals due to natural reasons. This can mainly be achieved by increasing production volumes.
In industries oriented to the final consumer, demand-driven production and sales volumes, the level of production costs, are crucial, but without compromising the quality of consumer goods.
The amount of profit from sales of products is affected by the composition and size of unrealized balances at the beginning and end of the reporting period. A significant amount of balances leads to incomplete receipt of revenue and a shortage of expected profits.
Remains of unsold products are formed for the following reasons:
Part of the finished product naturally settles in the warehouse due to the need for its assembly, packaging, preparation for shipment, accumulation to the size of the transport batch, and the issuance of settlement documents. The increase in the balance of finished products in the warehouse in excess of the standard value should be the subject of attention of the financial services of the enterprise: it is possible that the products do not find sale due to the breakdown of economic ties or are not in demand for another reason.
Such an effect on the profit of the residuals of finished products in the warehouse is found in enterprises that manufacture products that have a natural-material form. The work performed and the services rendered, due to their specific form as a product, cannot take the form of product leftovers in the warehouse. The same applies to the products of some industries, for example, electricity, transport, communications;
Remains of goods shipped, the due date of which has not come, may be formed when applying certain forms of payment for shipped products. Full prepayment of the shipped products excludes the formation of such balances and is practiced by many enterprises, but as a form of payment it has its drawbacks;
Some of the goods shipped were not paid on time by the buyer. In this case, the non-receipt of proceeds practically does not depend on the supplier. Unfortunately, this situation has become typical, the volume of non-payments does not decrease, but the company should still work towards generating income - stop shipping to the buyer, transfer it to a letter of credit, transfer the claims to collect non-payments from the buyer to the bank, issue a commercial loan;
The products were shipped and received by the buyer, but the latter legally refused to pay for it. The most likely reason for refusal may be the supplier's failure to comply with the terms of the supply agreement.
The reserve for increasing the balance sheet profit can be the profit received from the sale of fixed assets and other property of the enterprise. If earlier operations associated with the disposal of fixed assets did not have a noticeable effect on financial results, now, when enterprises have the right to dispose of their property, it makes sense to get rid of unnecessary and not installed equipment, having previously weighed which is more profitable - to sell it or lease it ... Other transactions, such as the gratuitous transfer of property, plant and equipment to the entity, are not included in the balance sheet profit, but are recovered from the net profit held for accumulation.
The financial result from the sale of other property of the enterprise can be both positive and negative. It depends on the composition and the selling price of the assets being sold. If we are talking about tangible assets, then one should proceed not so much from the possibility of making a profit as from the availability of stocks, which, due to changes in the economic situation, the range of products and for other reasons, are unnecessary or exceed the level sufficient for the planned output of products. ... This work is one of the areas of financial management, i.e. financial management of the enterprise, and should be carried out on the basis of an analysis of the structure of tangible assets. Of course, it is better to sell them at a price that exceeds the book value, but otherwise the company will receive funds that can be brought into circulation.
Profit can be obtained from the sale of intangible assets that are in demand in the market. Their selling price is determined by their ability to generate income. For the purpose of calculating profit, the selling price excludes the costs associated with the creation or purchase of intangible assets, taking into account the costs of bringing them to a state in which they are capable of generating income.
Securities are purchased by an enterprise for different purposes. Since they relate to liquid assets, the company, quickly converting them into money, can make payments and settlements, and repay obligations. When buying securities, their right choice... It is possible to purchase securities only if there is reasonable confidence in the growth of their market value, then their sale will give a positive financial result. With a fall in market value, it is almost impossible to sell these securities, and in the absence of income on them, such an investment can be considered not assets, but losses. By selling securities, the company receives a result that can be compared with the par value of these securities.
As part of non-operating transactions, financial investments can be the most profitable. It is important that they are carried out not to the detriment of the main activity of the enterprise. Specific directions and structure of financial investments should be the result of a well-thought-out enterprise policy based on a reliable assessment of their effectiveness. An unprofessional approach to this issue can lead to the loss of funds invested in the authorized capital of other enterprises or joint activities, in illiquid securities. At present, practically no income from financial assets exceeds the inflation rate, therefore, in order to obtain real income from financial investments, one should approach such investments very carefully.
Storing money in a deposit account or purchasing certificates of deposit can now be considered a relatively reliable way of financial investments. In this case, at least two circumstances must be taken into account: the rate of inflation, when it comes to the acquisition of certificates, and the tax rate on the income received.
The most important issue in managing the process of generating profit is planning profit and other financial results, taking into account the conclusions of economic analysis. The main goal in planning is to maximize income, which makes it possible to finance a larger volume of the needs of the enterprise in its development. In this case, it is important to proceed from the amount of net profit. The task of maximizing the company's net profit is closely related to the optimization of the amount of taxes paid within the framework of the current legislation, and the prevention of unproductive payments.
Practical part
Table 1
Calculation of the planned amount of depreciation and its distribution
| Index | Amount, thousand rubles |
|
| Cost of depreciable fixed assets at the beginning of the year | ||
| Average annual cost of fixed assets introduced | ||
| Average annual cost of retired fixed assets | ||
| Average annual cost of fully depreciated equipment (in current prices) | ||
| Average annual cost of depreciable fixed assets (in current prices) - total | 25331,67 |
|
| Average depreciation rate,% | ||
| Amount of depreciation deductions - total | ||
| Use of depreciation deductions for investments in non-current assets |
table 2
Cost estimate for the production of products of a limited liability company
| Cost item | Total for the year, thousand rubles | Incl. for the IV quarter, thousand rubles |
|
| Material costs (excluding returnable waste) | |||
| Labor costs | |||
| Depreciation of fixed assets | |||
| Other expenses, total | |||
| including |
|||
| a) payment of interest for a short-term loan | |||
| b) taxes included in the cost | |||
| including: |
|||
| social tax (35.6%) | |
||
| other taxes | |||
| c) rent payments and other expenses | |||
| Total production costs | |||
| Charged to non-production accounts | |||
| Cost of gross output | |||
| Change in work in progress | |||
| Change in deferred balances | |||
| Production cost of marketable products | |||
| Selling expenses | |||
| Full cost of marketable products | |||
| Commercial products at selling prices (excluding VAT and excise taxes) |
3. Determine the volume of sold marketable products and profits (Table 3).
Table 3
Calculation of the volume of products sold and profits
| Index | Amount, thousand rubles |
|
| Actual balances of unsold products at the beginning of the year: | |
|
| a) in prices of the base year excluding VAT and excise taxes | ||
| c) profit | ||
| Release of marketable products (performance of work, provision of services) | |
|
| b) at full cost | ||
| c) profit | ||
| Planned balances of unsold products at the end of the year: | |
|
| a) at current prices excluding VAT and excise taxes | ||
| b) at production cost | ||
| c) profit | ||
| Product sales in the planned year: | |
|
| a) at current prices excluding VAT and excise taxes | ||
| b) at full cost | ||
| c) profit from the sale of marketable products (works, services) |
4. Draw up a draft Profit and Loss Statement (Table 4).
Table 4
Income statement draft
| Index | Amount, thousand rubles |
|
| I. Income and expenses from ordinary activities |
||
| Revenue (net) from the sale of products in the planned year | ||
| Cost of products sold in the planned year | ||
| Profit (loss) from sale | ||
| II. Operating income and expenses |
||
| Interest receivable | ||
| Percentage to be paid | ||
| Income from participation in other organizations | ||
| Other operating income | ||
| Other operating expenses | ||
| Total operating income and expenses | ||
| III. Non-operating income and expenses |
||
| Non-operating income | ||
| Non-operating expenses - total | ||
| including: |
||
| d) R&D costs | ||
| e) taxes attributable to financial results | ||
| f) expenses for other operations | ||
| Profit (loss) of the planned year | ||
Table 5
Calculation of the needs of enterprises in working capital
| Cost item | Standard at the beginning of the year, thousand rubles | Costs of the 4th quarter, thousand rubles | Costs of the IV quarter, thousand rubles / day | Stock rates, in days | End-of-year ratio, thousand rubles | Increase (+), decrease (-) |
|
| Productive reserves | |||||||
| Unfinished production | |||||||
| Future expenses | | | | | |||
| Finished goods | |||||||
| Total | | | | | | ||
| Sources of growth |
|||||||
| Stable liabilities | | | | | | ||
| | | | | | |||
6. Fill in the table “Profit distribution for the planned year” (Table 6). Independently decide on the amount of dividend payments and repayment of long-term loans.
Table 6
Profit distribution for the planned year
| Index | Amount, thousand rubles |
|
| Profit of the planned year | ||
| Contributions to the reserve fund | ||
| Workshop reconstruction | ||
| Residential building construction | ||
| Contributions to the consumption fund - total | ||
| including: |
||
| a) to pay material assistance to employees of the enterprise | ||
| b) cheaper food in the dining room | ||
| c) for payment of remuneration at the end of the year | ||
| Tax paid out of profits | ||
| Income tax | ||
| Other income tax 6% | ||
| Long-term loan repayment | ||
| Payment of dividends | ||
| Increase in working capital due to profit |
7. Determine the sources of capital investments in industrial and non-industrial construction (Table 7).
Table 7
Calculation of sources of financing for investments in non-current assets, thousand rubles
| A source | Capital investments for industrial purposes | Non-production capital investments | Capital investment amount |
|
| Budget appropriations | ||||
| Profit directed to investments in non-current assets | ||||
| Depreciation deductions for fixed assets | | |||
| Planned savings according to the estimate for construction and installation works, carried out by the economic method | | |||
| Proceeds of funds for housing construction in the manner of equity participation | | |||
| Other sources | | | |
|
| Long-term bank loan | ||||
| Total investments in non-current assets | ||||
| Loan interest payable (rate 25% per annum) |
8. Make a balance of income and expenses (financial plan) (tab. 8).
Table 8.
Balance of income and expenses (financial plan)
| Index | Amount, thousand rubles |
|
| I. Receipt (cash inflow) | |
|
| A. From current activities | |
|
| Proceeds from the sale of products, works, services (excluding VAT, excise taxes and customs duties) | ||
| Other income - total | ||
| including: |
||
| earmarked funding | ||
| receipts from parents for the maintenance of children in preschool institutions | ||
| Increase in stable liabilities | ||
| Total for Section A | ||
| B. From investment activities | |
|
| Revenue from other sales (excluding VAT) | ||
| Income from non-operating transactions | ||
| Construction savings - installation works carried out in an economic way | ||
| Funds received from customers under R&D contracts | ||
| Funds received as equity participation in housing construction | ||
| Release of funds from circulation (mobilization) | |
|
| Total for section B | ||
| B. From financial activities | |
|
| Increase the authorized capital | |
|
| Income from financial investments | ||
| Increase in debt - total | ||
| including: |
||
| obtaining new loans, credits | ||
| bond issue | |
|
| Total for section B | ||
| Total income | ||
| II. Expenses (cash outflows) | |
|
| A. On current activities | |
|
| Cost of production of goods sold (excluding depreciation and taxes attributable to cost) | ||
| Payments to the budget - total | ||
| including: | |
|
| taxes included in the cost of production | ||
| income tax and tax on other income | ||
| taxes paid on the profit remaining at the disposal of the enterprise | ||
| income taxes | ||
| Payments from the consumption fund (material assistance, etc.) | ||
| Growth of own working capital | ||
| Total for Section A | ||
| B. By investment activity | |
|
| Investments in fixed assets and intangible assets - total | ||
| including: | |
|
| investments in non-current assets for production purposes | ||
| investments in non-current assets for non-production purposes | ||
| R&D costs | ||
| payments for leasing operations | |
|
| Long-term financial investments | |
|
| Other sales expenses | ||
| Non-operating expenses | ||
| other expenses | |
|
| Total for section B | ||
| B. From financial activities | |
|
| Repayment of long-term loans | ||
| Interest payment | ||
| Short-term financial investments | |
|
| Payment of dividends | ||
| Contributions to the reserve fund | ||
| other expenses | |
|
| Total for section B | ||
| Total expenses | ||
| Excess income over expenses (+) | ||
| Excess of expenses over income (-) | ||
| Balance on current activities | ||
| Investment balance | ||
| Financial balance |
9. Draw up a short explanatory note to the financial plan.
In the process of preparing the financial plan at the first stage, we determined the depreciation of fixed assets. The calculation was carried out on the basis of the cost of fixed assets at the beginning of the year, input and output of fixed assets. The depreciation charge was obtained by multiplying average annual cost equipment at the rate of depreciation.
When making an estimate, we calculated the following indicators:
· Unified social tax (35.6% of the amount of wages);
· Production costs (including material costs, labor costs, depreciation of fixed assets and other costs);
· Costs of gross production, consisting of production costs and the amount written off to non-production accounts;
· The production cost of marketable products, which consists of the cost of gross output, changes in the balance of work in progress and changes in the balance of deferred expenses;
· The full cost of marketable products (the sum of the production cost of marketable products and sales costs).
When calculating the volume of products sold and profit, the planned balances of unsold products at the end of the year and the volume of sales of products in the planned year were calculated.
The received profit, then it was distributed as follows:
· Deductions to the reserve fund - 5000 thousand rubles;
· Reconstruction of the shop - 8900 thousand rubles;
· Construction of a residential building - 4000 thousand rubles;
· Deductions to the consumption fund - 7980 thousand rubles;
· Taxes - 11815 thousand rubles.
12,624 thousand rubles were allocated for the payment of dividends, 1,122 thousand rubles were allocated for the repayment of the long-term loan.
The enterprise maintains a positive balance only for current activities, for financial and investment - the balance is negative. That is, part of the costs of these activities is financed from sales revenue and some other income. Consequently, the company needs to make a decision to take measures to increase the investment and financial attractiveness of the company.
Conclusion
In the course of the course research, we determined that profit as an economic category reflects the net income created in the field of material production in the process of entrepreneurial activity. The result of the combination of factors of production (labor, capital, natural resources) and the useful productive activity of economic entities is a finished product, which becomes a commodity provided it is sold to the consumer.
At the stage of sale, the value of the goods is revealed, including the value of the past reified, labor and living labor. The value of living labor reflects the newly created value and falls into two parts. The first is the wages of workers involved in the production of products. Its value is determined by a number of factors due to the need to reproduce the labor force. In this sense, for the entrepreneur, it represents part of the cost of production. The second part of the newly created value reflects the net income that is realized only as a result of the sale of products, which means public recognition of its usefulness.
At the enterprise level, in terms of commodity-money relations, net income takes the form of profit. In the market of goods, enterprises act as relatively isolated producers. Having established a price for a product, they sell it to the consumer, while receiving cash proceeds, which does not mean making a profit. To identify the financial result, it is necessary to compare the proceeds with the costs of production and sale, which take the form of the cost of production. When revenue exceeds cost, the financial result indicates a profit. An entrepreneur always sets profit as his goal, but not always gets it. If the revenue is equal to the cost price, then it was only possible to reimburse the costs of production and sales of products. When sold without losses, there is no profit as a source of production, scientific, technical and social development. At costs exceeding revenue, the company receives losses - a negative financial result, which puts it in a rather difficult financial position, which does not exclude bankruptcy.
List of used literature
1. Babich A.M. Finance: Textbook / A.M. Babich, L.N. Pavlova. - M .: ID FBK-PRESS, 2000 .-- 760 p.
2. Belolipetskiy VG Finances of the company: A course of lectures / Ed. I. P. Merzlyakova. - M .: Infra-M, 2001 .-- 298 p.
3. Blank I.A. Financial management: training course. - K .: Nika-Center, 2002.
4. Borodina E.I. Enterprise Finance / E.I. Borodin, Yu.S. Golikova, N.V. Kolchin. - M .: Banks and exchanges, 2002 .-- 208
5. Van Horn J. Fundamentals of financial management / J. Van Horn / Ed. I.I. Eliseeva. - M .: Finance and statistics, 2002 .-- 791 p.
6. Zelyakovskaya V.M., Vasiliev A.A. Financial planning of activities industrial enterprise... Preprint of a scientific report prepared for participation in the 39th scientific-practical conference of VolgSTU. - Volgograd: RPK "Polytechnic", 2002.
7. Kovalev A.M., Lapusta M.G., Skamay L.G. Firm finances. - M .: INFRA-M, 2003 .-- 496 p.
8. Quantitative methods of financial analysis / Ed. S.J.Brown and M.P. Kritsman. - M .: INFRA-M, 2002 .-- 336 p.
9. Kuksov A. Planning the activities of the enterprise // The Economist. - 2002. - No. 6. - S. 61-67.
10. Kukukina I.G. Financial management / I.G. Kukukina. - M .: Jurist, 2001 .-- 267 p.
11. Nikolaeva O., Shishkova T. Management accounting: a tutorial. Publishing house "URSS", 2002. - 368 p.
12. Repin V.V. Enterprise finance management technologies / V.V. Repin. - M .: "Publishing house" ATKARA ", 2000.
13. Rumyantseva E.E. Finances of organizations: financial technologies of enterprise management: Textbook. manual / E.E. Rumyantsev. - M .: INFRA-M, 2003 .-- 459 p.
14. Ryndin A.G., Shamaev G.A. Organization of financial management at the enterprise. - M .: Russian business literature, 2003 .-- 350 p.
15. Starovoitov M.K. Modern Russian corporation (organization, experience, problems). - M .: Nauka, 2001 .-- 312p.
16. Stoyanova E. S. Financial management: Russian practice. - M .: Perspective, 2004 .-- 200 p.
17. Enterprise finance management / Ed. L.V. Terekhova. - M .: JSC "Publishing House" Logos-Development ", 2001. - 144 p.
18. Financial management: Textbook / Ed. E.I. Shokhin. - M .: ID FBK-PRESS, 2002 .-- 408 p.
19. Finances: Textbook / V.М. Rodionova, Yu. Vavilov. - M.,: Finance and statistics, 2003 .-- 398 p.
20. Helfert E. Technique of financial analysis / Per. from English ed. L.P. White. - M .: Audit, UNITI, 2002 .-- 663 p.
Tutoring
Need help exploring a topic?
Our experts will advise or provide tutoring services on topics of interest to you.
Send a request with the indication of the topic right now to find out about the possibility of obtaining a consultation.
Introduction. 3
1. Profit and its role in a market economy. 5
1.1 The concept of profit as an economic category. 5
1.2 Functions of profit. 6
2. Planning profit and factors of its growth. ten
2.1 Profit planning as an integral part of financial management 10
2.2 Methods of planning profit. 12
3. Distribution and use of profits in the enterprise. 19
3.1 The main directions of the distribution of the profit of the enterprise. 19
3.2 Mechanism of distribution of profits. 21
Conclusion. 27
References: 28
Introduction
In modern economic conditions, the activity of each economic entity is the subject of attention of a wide range of market participants interested in the results of its functioning. To ensure survival in modern conditions, management personnel must, first of all, be able to realistically assess the financial capabilities of both their enterprise and existing potential competitors. The competitiveness of an enterprise can only be ensured by the correct management of the movement of financial resources and capital at its disposal. It is known that the purpose of a firm (enterprise) in the modern economy is to make a profit. It is under this condition that the firm can sustainably exist and provide itself with a basis for growth. Stable profit of the company manifests itself in the form of a dividend on the invested capital, helps to attract new investors and, consequently, increase the company's equity capital. Therefore, it becomes clear interest in the problems of profitability of the firm.
In times of market relations, the role of analysis and planning of the financial results of the enterprise is extremely important. This is due to the fact that enterprises have acquired independence and are fully responsible for the results of their activities to co-owners, shareholders, employees, banks and creditors.
Profit is the monetary expression of the bulk of cash savings, created by enterprises any form of ownership. As an economic category, it characterizes the financial result of the entrepreneurial activity of an enterprise. Profit is the indicator that most fully reflects the efficiency of production, the volume and quality of products produced, the state of labor productivity, the level of cost. At the same time, profit has a stimulating effect on the strengthening of commercial accounting, the intensification of production in any form of ownership.
In the conditions of market relations, an enterprise should strive to obtain maximum profit, that is, to such a volume that would allow the enterprise not only to firmly hold its sales position in the market for its products, but also to ensure the dynamic development of its production in a competitive environment. Therefore, each enterprise, before starting to manufacture products, determines what profit, what income it can receive. Hence, profit is the main goal of entrepreneurial activity, its end result.
The purpose of this work is to analyze the features of planning and distribution of profits. In connection with the work delivered
The goal is to solve a number of interrelated tasks:
Analyze the concept of profit as an economic category;
Describe the function of profit;
Describe the profit planning process as an integral part of financial management;
Analyze profit planning methods;
Analyze the main directions of the distribution of enterprise profits;
Describe the mechanism of profit distribution.
1. Profit and its role in a market economy
1.1 The concept of profit as an economic category
The efficiency of production, investment and financial activities is expressed in financial results.
In market conditions, each economic entity acts as a separate commodity producer, which is economically and legally independent. An economic entity is independent in choosing a business area, forming a product range, determining costs, forming prices, taking into account sales proceeds, and therefore identifying profit or loss based on performance results.
Making a profit is the immediate goal of a business entity's production. The implementation of this goal is possible only if the business entity produces products (works, services) that, in terms of their consumer properties, correspond to the needs of society. Society does not need ruble equivalents, but specific commodity and material values.
Receipt of proceeds for the produced and sold products does not mean making a profit yet. To identify the financial result, it is necessary to compare the revenue with the costs of production and sale: when the revenue exceeds the costs, then the financial result indicates a profit. With the equality of proceeds and costs, it is only possible to reimburse costs - there is no profit, and therefore, there is no basis for the development of an economic entity. When costs exceed revenues, a business entity suffers losses - this is an area of critical risk, which puts the business entity in a critical financial position that does not exclude bankruptcy. Losses highlight errors, miscalculations in the directions of use financial resources organization of production, management and marketing of products.
Profit reflects a positive financial result. The desire to make a profit orients commodity producers to increase the volume of production, reduce costs. This ensures the implementation of not only the goals of the business entity, but also the goals of society - the satisfaction of social needs. Profit signals where the greatest increase in value can be achieved and creates an incentive to invest in these areas.
Profit is a surplus product produced and necessarily realized. It is created at all stages of the reproductive cycle, but it receives its specific form at the stage of implementation. Profit is the main form of net income (along with excise taxes and VAT).
The amount of profit and its dynamics are influenced by factors both dependent and not dependent on the efforts of an economic entity.
The factors of the internal environment are studied and taken into account in business practice, they can be influenced in terms of increasing profits. TO internal factors include: the level of management, the competence of the manager, the competitiveness of products, wages, the level of prices for products sold, the organization of production and labor.
Factors are practically outside the sphere of influence external environment: the level of prices for consumed resources, the competitive environment, barriers to entry, the tax system, government agencies, political, social, cultural, religious, etc.
The amount of profit depends on the areas of activity of an economic entity: production, commercial, technical, financial and social.
1.2 Profit functions
Rice. 1.Functions of profit
First, profit is a criterion and indicator of the efficiency of an enterprise. In other words, the very fact of profitability already testifies to the efficient operation of enterprises.
However, here it should be borne in mind that it is not the fact of making a profit that is important, but a certain amount of it, sufficient to satisfy all the needs of interested parties: the owners of the enterprise, its employees and creditors.
Secondly, profit has a stimulating function. The status of a goal is assigned to it, which predetermines the economic behavior of business entities, whose well-being depends both on the amount of profit and the algorithm for its distribution adopted in the national economy, including taxation.
Profit is the main source of equity capital gains. In the conditions of market relations, owners and managers, focusing on the size of the profit remaining at the disposal of the enterprise, make decisions about the dividend and investment policy pursued by the enterprise, taking into account the prospects for its development.
Profit in a market economy is the driving force and source of renewal of production assets and products.
And finally, profit is a source of social benefits for the members of the work collective. At the expense of the profit remaining at the enterprise after the payment of tax and the payment of dividends, as well as other priority deductions (for example, for the creation of reserve funds), material incentives for employees and the provision of social benefits to them, the maintenance of social facilities are carried out.
Thirdly, profit is a source of revenue generation for budgets of various levels. It comes to budgets in the form of taxes, as well as economic sanctions and is used for various purposes determined by the expenditure side of the budget.
In the conditions of market relations, a business entity should strive, if not to obtain the maximum amount of profit, then to the amount of profit that will ensure the dynamic development of production in a competitive environment, will allow it to maintain its position in the market of this product, ensure its survival. The solution of these problems involves not only knowledge of the sources of profit formation, but also the determination of methods for their optimal use. Profit management acts as one of two pillars financial policy and sets itself the task of maximizing income from available sources of financial results while expanding the general range of these sources.
Making a profit, possibly due to the monopoly position or the uniqueness of the product on the market of a particular product. The implementation of this source is possible due to the constant updating of the product and retention of the share of production and sales. However, one should take into account the influence of such factors as growing competition from other business entities and the antimonopoly policy of the state.
Profit making, which concerns almost all enterprises and firms, is associated with production and entrepreneurial activities. The implementation of this source is possible only with appropriate marketing research of the market. The amount of profit in this case depends on the correct choice of business, on the creation of competitive conditions for the sale of goods, on production volumes, on the size and structure of production costs,
In modern conditions, the most important source of increasing profits is innovation. The implementation of this source assumes permanent job to change the consumer properties of products, works and services.
Considering profit as an economic category, we are talking about it in the abstract. But when planning and evaluating the economic and financial activities of the enterprise, the distribution of profits remaining at the disposal of the enterprise, specific indicators are used. A capacious informative indicator is the balance sheet profit.
The final financial result of the economic activity of the enterprise is the balance sheet profit. Balance sheet profit is the sum of the profits (losses) of the enterprise both from the sale of products and income (losses) not related to its production and sale. The sale of products means not only the sale of manufactured goods that have a natural-material form, but also the performance of work, the provision of services. Balance sheet profit as a final result is revealed on the basis of accounting of all business operations of the enterprise and the assessment of balance sheet items. The use of the term "balance sheet profit" is due to the fact that the final financial result of the enterprise is reflected in its balance sheet, compiled at the end of the year.
2. Planning profit and factors of its growth
2.1 Profit planning as an integral part of financial management
The most important issue in managing the process of generating profit is planning profit and other financial results, taking into account the conclusions of economic analysis. The main goal in planning is to maximize income, which makes it possible to finance a larger volume of the needs of the enterprise in its development. In this case, it is important to proceed from the amount of net profit. The task of maximizing the company's net profit is closely related to the optimization of the amount of taxes paid within the framework of the current legislation, and the prevention of unproductive payments.
Profit planning is an integral part of financial planning and an important area of financial and economic work in an enterprise. Profit planning is carried out separately for all types of enterprise activities. This not only makes planning easier, but also has implications for the estimated amount of income tax, since some activities are not subject to income tax, while others are subject to higher rates. In the process of developing profit plans, it is important not only to take into account all the factors affecting the magnitude of the possible financial results, but also, having considered the options for the production program, to choose the one that provides the maximum profit.
With relatively stable prices and forecasted economic conditions, profit is planned for a year within the framework of the current financial plan. The current situation makes annual planning extremely difficult, and enterprises can draw up more or less realistic plans for profit by quarter. Since since 1993, profit planning has been "tied" to the calculation of advance payments for income tax and the procedure for making them to the budget, quarterly plans becomes necessary. Income tax payers are interested in making sure that the difference between their declared advance tax payments and the actual payments is minimal. However, the more important goal of profit planning is to determine the ability of the enterprise to finance its needs.
The planning object is the planned elements of the balance sheet profit, mainly the profit from the sale of products, the performance of work, and the provision of services. The basis for the calculation is the volume of the production program, which is based on consumer orders and business contracts.
In the most general form, profit is the difference between price and cost, but when calculating the planned profit, it is necessary to clarify the volume of products from the sale of which this profit is expected. It is necessary to distinguish the planned profit in terms of commodity output from the profit planned for the volume of products sold. Profit on commodity output is planned on the basis of estimates of the costs of production and sales of products, where the cost of commodity output of the planned period is determined:
Ptp = Ctp - Stp,
where Птп - profit for commodity output of the planned period;
Цтп - the cost of commodity output of the planned period in current sales prices (excluding value added tax, excise taxes, trade and sales discounts);
Stp - the full cost of marketable products for the planned period (calculated in the estimate of costs for the production and sale of products).
Profit on products sold is calculated differently:
Prp = Vrp - Srp,
where Prp is the planned profit for products to be sold in the coming period;
GRP is the planned proceeds from the sale of products in current prices (excluding value added tax, excise taxes, trade and sales discounts);
Срп - the total cost of products sold in the coming period.
Based on the fact that the volume of products sold for the upcoming planning period in physical terms is determined as the sum of the balances of unsold products at the beginning of the planning period without balances of finished products that will not be sold at the end of this period, the calculation of the planned amount from the sale of products will take the form:
Prp = P01 + Ptp - P02,
where At is the profit from the sale of products in the planned period;
P 01 - profit in the balance of products not sold at the beginning of the planning period;
Птп - profit of commodity products planned for release in the forthcoming period;
P 02 - profit in the balance of finished products, which will not be sold at the end of the planning period.
It is this method of calculation that underlies the application of the enlarged direct method of planning profit, when it is easy to determine the volume of products sold in prices and at cost.
2.2 Profit planning methods
In modern conditions, the amount of profit is predictive. It is determined separately for all types of activities. The planning object is the elements of the balance sheet profit. At the same time, special attention is paid to determining the amount of profit from the sale of products (works, services), since it occupies the largest share and is the most stable.
A common method of planning profit is the direct account method. This method is most effective when selling a small range of products (works, services).
According to this method, the development of a profit plan should be preceded by the calculation of the planned amounts of gross income and distribution costs, justification for obtaining income from other activities and non-operating income and expenses.
To substantiate the amount of gross income, a trading company must calculate a turnover plan for individual goods and product groups, develop a pricing policy for itself, in which to determine the expected trend in price movements and the level of trade markups set by the company.
The estimated amount of income from non-trading activities is determined on the basis of their amounts attained for each type of activity in the reporting period and the changes planned for the planned year.
Calculation of the planned amount of profit from sales should include calculations for the economic justification of the planned amount of distribution costs.
The planned value of gross profit depends on the balance of non-operating income and expenses in the planned year, which is determined on the basis of their amounts achieved in the reporting year for each type of income and expenses separately and the changes planned in the planned year. At the same time, the enterprise must take effective measures to reduce such non-operating expenses as transaction costs, expenses in the form of fines, penalties or other sanctions for violation of contractual obligations, amounts of receivables for which the limitation period has expired.
In non-operating expenses, a significant place can have the amount of expenses for the payment of interest for the use of bank credits (loans) for current storage goods. The cost of paying interest for the use of the loan is planned based on the standard commodity stocks, availability of own circulating assets and bank rates for a loan.
The considered method of direct account allows you to get fairly accurate results of the planned amount of net profit, but it also has drawbacks. First of all, it is not sufficiently focused on achieving target (normative) indicators of the level of net profit.
A fairly simple method of planning the profit of a commercial enterprise is normative method, but the condition for its application is the availability of the appropriate regulatory framework... The rate of profit per unit of commodity turnover or the rate of return on equity capital may serve as such standards.
Their actual values achieved in the reporting period, taking into account peer review sufficiency for the production and social development of the enterprise. If they are insufficient, the standards can be: the average industry level of profitability achieved in the reporting period, or the average rate of deposit interest in the money market.
The normative method for the planned calculation of the amount of net profit can be used in the process of determining it for newly opened enterprises. Its disadvantage is that it is practically not linked with other indicators of the trading enterprise's activity, as a result of which it also cannot be used for multivariate calculations.
Target planning method profit allows you to ensure the linkage of its size with the development goals of the enterprise. The basis of this method is the preliminary determination of the minimum required amount of profit sufficient to pay income tax, repay long-term loans and interest on them, meet the company's needs for funds to pay dividends, make social payments to employees, as well as to accumulate funds required by the company for production development.
Let's give a concrete example.
As already mentioned, when planning the profit of an enterprise, various economic and mathematical models can be used.
The volume of sales of an enterprise is formed as a result of the cumulative influence of many long-term and short-term factors. Changes in these factors lead to variations in the volume of sales over time. However, as a result of long-term factors, the development of the volume of sales to a certain extent has an inertial nature, which manifests itself, firstly, as the inertia of the relationship, i.e. maintaining the pace and direction of change in revenue.
The presence of inertia makes it possible to judge the future development of sales volumes (although with an insufficient degree of accuracy), based on the analysis of the past, identifying the patterns of the past period, i.e. about the trend in the volume of sales, which can be characterized in the form of a certain function - a trend.
To identify the main trend in the development of sales, the method of analytical alignment (trend method) is used.
Most important point when leveling is the choice of the type of curve, on which the results of the forecast of the volume of sales depend. The most reasonable approach should be considered the approach based on graphical analysis of revenue.
Table 1
Initial data on the volume of sales of AViS LLC for 2005.
Let's present the data in Table 1 in the form of a graph.
Rice. 2. Dynamics of proceeds from sales by months for 2005, thousand rubles.
Based on this graph, it can be seen that the volume of sales develops along a linear function:
where y is the volume of product sales;
x - Time factor, year (month);
t - model parameters.
We find the model parameters using Microsoft programs Excel. In this case, the equation of the trend line will have the following form (see Fig. 3).
Rice. 3. Trend analysis of the dynamics of volumes from sales.
Thus, the trend equation will look like y = 5870.5 + 298.26x.
Let's forecast sales proceeds for the next (2005) year.
table 2
Forecast calculation of proceeds from sales for 2006
Let us assume that the amount of commercial and administrative expenses will remain at the same level as in 2005 and amount to 7286 thousand rubles. The share of the prime cost in the sales volume is 80%. Thus, the forecasted cost price in 2006 will amount to 136,660 * 0.80 + 7286 = 116,614 thousand rubles.
The forecasted profit in 2006 will be:
136,660 - 116614 = 20,046 thousand rubles.
3. Distribution and use of profits in the enterprise
3.1 The main directions of distribution of enterprise profits
Distribution and use of profits is the most important economic process that covers the needs of entrepreneurs and the formation of state revenues.
The main areas of profit use include:
Fulfillment of obligations to budgets (federal, regional, local);
Settlements with banks, enterprises, organizations;
Investments in the development of the enterprise;
Payment of dividends on shares;
Meeting the social and material needs of employees.
The profit remaining at the disposal of the organization is accumulated in several funds: accumulation, consumption, reserve.
From the accumulation fund, funds are spent on the development of the organization - the construction of new facilities, the expansion and reconstruction of existing ones, the acquisition of property and the modernization of equipment. Other areas of production development are also funded.
The consumption fund is intended to provide material incentives for workers and to strengthen the social sphere.
The reserve fund is mainly used not only to cover non-productive losses and losses, but also losses for the reporting year.
The main directions of using the profit remaining at the disposal of the enterprise are determined by its constituent documents or the decision of the founders, which should indicate which funds and in what amounts are created at the enterprise from net profit and for what purposes they are directed.
Specific directions and amounts of profit distribution are determined by the dividend policy adopted at the enterprise and the policy of the enterprise development.
A schematic diagram of the distribution of profits remaining at the disposal of the enterprise is shown in Fig. 4.
Rice. 4. Scheme of distribution of enterprise profits
The reserve fund is intended to cover non-productive losses and losses, to cover the balance sheet loss of the enterprise for the reporting year, as well as to pay income (dividends) to participants in the absence or insufficient profit of the reporting year for these purposes.
The accumulation fund is intended for the financial support of the production development of the enterprise and other similar measures for the creation of new property. This fund finances the construction of new production facilities, expansion and reconstruction of the enterprise, purchase and modernization of equipment, repayment of long-term loans and interest on them, financing the increase in own working capital, etc.
The Social Sphere Fund is intended to finance capital investments in the development of social facilities: the construction of housing, cultural and educational institutions, sanatoriums, rest homes, recreation camps for children, school and preschool institutions, etc.
The accumulation fund and the social sphere fund can act as a single accumulation fund.
The consumption fund accumulates funds allocated for the implementation of measures for the development of the social sphere (except for capital investments) and material incentives for employees and other similar measures that do not lead to the formation of new property of the enterprise.
3.2 Mechanism of distribution of profits
The mechanism for distributing profits should be built in such a way as to contribute in every way to increasing the efficiency of production, to stimulate the development of new forms of management. One of the most important problems of profit distribution is the optimal ratio of the share of profit accumulated in budget revenues and remaining at the disposal of business entities; an economically justified system of profit distribution should guarantee the fulfillment of financial obligations to the state and maximize the production, material and social needs of the enterprise.
The distribution object is the balance sheet profit of the enterprise. Its distribution refers to the direction of profit to the budget and by items of use at the enterprise. The distribution of profits is legally regulated in the part that goes to the budgets of different levels in the form of taxes and other mandatory payments. Determination of the directions of spending the profit remaining at the disposal of the enterprise, the structure of the articles of its use is in the competence of the enterprise.
The principles of profit distribution can be formulated as follows:
The profit received by the enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise as an economic entity;
The profit for the state goes to the respective budgets in the form of taxes and fees, the rates of which cannot be arbitrarily changed. The composition and rates of taxes, the procedure for their calculation and contributions to the budget are established by law;
The amount of the enterprise's profit remaining at its disposal after paying taxes should not reduce its interest in increasing the volume of production and improving the results of production, economic and financial activities;
The profit remaining at the disposal of the enterprise is primarily directed to accumulation, ensuring its further development, and only in the rest - to consumption.
At the enterprise, the distribution is subject to net profit, that is, the profit remaining at the disposal of the enterprise after taxes and other mandatory payments. It collects sanctions paid to the budget and some extrabudgetary funds.
The profit remaining at the disposal of the enterprise is used by it independently and is directed to the further development of entrepreneurial activity. No authorities, including the state, have the right to interfere in the process of using the company's net profit. Market conditions of business determine priority directions own profit. The development of competition necessitates the expansion of production, its improvement, and the satisfaction of the material and social needs of labor collectives.
In accordance with this, as it arrives, the enterprise's net profit is directed to financing R&D, as well as works on the creation, development and implementation of new technology, to improve technology and organization of production; for the modernization of equipment; improving product quality; technical re-equipment, reconstruction of the existing production.
Net profit is a source of repayment of own working capital. In addition, it is used to pay interest on loans received to compensate for the shortage of its own working capital, to purchase fixed assets, as well as to pay interest on overdue and deferred loans.
Some types of fees and taxes, car resale tax, computing technology and personal computers, collection from transactions for the purchase and sale of currency on stock exchanges, fees for the right to trade, and others.
Along with financing of production development, the profit remaining at the disposal of the enterprise is used to meet consumer and social needs. So, from this profit, one-time incentives and benefits for retiring are paid, as well as supplements to pensions, expenses are made to pay additional vacations in excess of the duration established by law, expenses for free meals or meals are paid at preferential prices.
The profit remaining at the disposal of the enterprise serves not only as a source of financing for production and social development, as well as material incentives, but is also used in cases of violation of the current legislation by the enterprise to pay various fines and sanctions.
So, fines are paid from net profit in case of non-compliance with security requirements the environment from pollution, sanitary norms and rules, when the regulated prices for products are overstated. The profit illegally obtained by the enterprise is recovered from the net profit.
In cases of concealment of profit from taxation or contributions to extra-budgetary funds, penalties are also levied, the source of payment of which is net profit.
The distribution of net profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.
In modern economic conditions, the state does not establish any standards for the distribution of profits, but through the procedure for granting tax incentives it stimulates the direction of profits for capital investments of a production and non-production nature, for charitable purposes, financing of environmental protection measures, expenses for the maintenance of facilities and institutions of the social sphere, and more. Legislation limits the size of the reserve fund of enterprises, regulates the procedure for forming a reserve for doubtful debts.
In the context of the transition to market relations, it becomes necessary to reserve funds in connection with the conduct risky operations and, as a consequence, loss of business income. Therefore, when using the net profit, the enterprise has the right to create a financial reserve, that is, a risk fund.
With the expansion of sponsorship, part of the net profit can be directed to charity, helping theater groups, organizing art exhibitions and other purposes.
The distribution of net profit is one of the directions of intra-firm planning, the importance of which is growing in a market economy. The procedure for the distribution and use of profits at the enterprise is fixed in the charter of the enterprise and is determined by the regulation, which is developed by the relevant departments of economic services and approved by the governing body of the enterprise. In accordance with the charter, enterprises can draw up cost estimates financed from profit, or form special-purpose funds: accumulation funds (production development fund or production and scientific and technical development fund, social development fund) and consumption funds (material incentive fund).
The estimate of expenses financed from profit includes expenses for the development of production, social needs of the labor collective, material incentives for employees and charitable purposes.
The costs associated with the development of production include the costs of research, design, engineering and technological work, financing the development and development of new types of products and technological processes, costs of improving technology and organization of production, modernization of equipment, costs associated with technical re-equipment and reconstruction of existing production, expansion of enterprises. The same group of expenses includes the costs of repaying long-term bank loans and interest on them. It also plans the costs of environmental measures, etc. Contributions of enterprises from profits as contributions of founders to the creation of the authorized capital of other enterprises, funds transferred to unions, associations, concerns, which include the enterprise, are also considered to be the use of profits for development.
The distribution of profits for social needs includes the costs of operating social facilities on the balance sheet of the enterprise, financing the construction of non-production facilities, organizing and developing subsidiary agriculture, conducting recreational, cultural events, etc.
The costs of material incentives include one-time incentives for the performance of especially important production tasks, the payment of bonuses for the creation, development and implementation of new technology, the cost of providing material assistance to workers and employees, one-time benefits to retiring labor veterans, allowances to pensions, compensation to workers the rise in the cost of food in canteens, canteens of the enterprise due to price increases, etc.
All profit remaining at the disposal of the enterprise is divided into two parts. The first increases the property of the enterprise and participates in the accumulation process. The second characterizes the share of profit used for consumption. At the same time, it is not necessary to use all the profits directed to accumulation in full. The remainder of the profit not used to increase the property has an important reserve value and can be used in subsequent years to cover possible losses and finance various costs.
Retained earnings in a broad sense as profit used for accumulation, and retained earnings of past years indicate the financial stability of the enterprise, about the availability of a source for further development.
The distribution and use of the profits of partnerships and joint-stock companies have their own characteristics, due to the organizational and legal form of these enterprises.
Conclusion
In conclusion, we note the following.
Profit is one of the main financial indicators of the plan and the assessment of the economic activities of enterprises. The profit is used to finance measures for the scientific, technical and socio-economic development of enterprises, an increase in the wages fund of their employees. It is not only a source of meeting the on-farm needs of the enterprise, but is becoming increasingly important in the formation of budgetary resources, off-budget and charitable funds.
Summing up the work done, it should be emphasized once again that profit is the difference between all the income of the enterprise and all its expenses - the positive financial result of the enterprise and characterizes the absolute efficiency of the enterprise in all areas of its activity: main (production, marketing, supply) , operating and non-operating.
Profit forms the basis of the economic development of the enterprise and the strengthening of its financial relations with all participants in the commercial business, and its growth creates financial base for self-financing, expanded reproduction, solving problems of social and material incentives for personnel. Also, profit is a source of income generation for budgets of various levels and the repayment of the company's debt obligations to banks, other creditors and investors.
Thus, profit is one of the most important in the system for assessing performance and business qualities the enterprise, the degree of its reliability and financial well-being.
Bibliography:
1. Basovsky L.E., Luneva A.M., Basovsky A.L. Economic analysis: (Comprehensive economic analysis of economic activity). - M .: INFRA-M, 2005 .-- 221 p.
2. Bogatin Yu.V., Shvandar V.A. Profit production. Textbook for universities. - M .: UNITI, 1998 .-- 256 p.
3. Glazunov V.N. Management of the company's income: Practical advice... - M .: Economics, 2003 .-- 283 p.
4. Kozhinov V.Ya. Accounting and tax accounting. Profit management. - M .: Exam, 2005.
5. Lebedev V.G. Enterprise cost management. - M .: Business press, 2006.
6. Nechitailo A.I. Accounting for financial results and distribution of profits. - SPb .: Peter, 2005 .-- 335 p.
7. Platonova N.A., Kharitonova T.V. Planning the activities of the enterprise. - M .: DIS, 2005 .-- 431 p.
8. Romanenko I.V. Enterprise economy. - M .: Finance and statistics, 2005 .-- 264 p.
9. Titov V.I. Analysis and diagnostics of the financial and economic activities of the enterprise. - M .: Publishing house Dashkov and K, 2005 .-- 349 p.
10. Financial Management: Theory and Practice: Textbook / Under. ed. E.S.Stoyanova. - 5th ed., Rev. and add. - M .: Perspektiva, 2004 .-- 656 p.
11. Finance. Textbook. manual. / Ed. Kovalevoy A.M. - 4th ed., Add. and revised.- M .: Finance and statistics, 2004.- 384 p.
12. Sheremet A.D., Saifulin R.S. Financial analysis technique. - M .: INFRA-M, 2001 - 176s.
13. Shulyak P.N. Enterprise Finance: Textbook. - 5th ed., Rev. and add. - M .: Publishing and trade corporation "Dashkov and K", 2005. - 712 p.
Bogatin Yu.V., Shvandar V.A. Profit production. Textbook for universities. - M .: UNITI, 1998 .-- P. 58
A.I. Nechitailo Accounting for financial results and distribution of profits. - SPb .: Peter, 2005 .-- P. 25
V.G. Lebedev Enterprise cost management. - M .: Business-press, 2006. - P. 85 Nechitailo A.I. Accounting for financial results and distribution of profits. - SPb .: Peter, 2005 .-- P. 86
Creating Text Effects Using CSS3 Decoration Line Style: The text-decoration-style property
Railway waybill reverse side Filling in the railway waybill
Systems analysis in modern management