In short, in your own words, what is profit. The difference between income, profit and revenue. Main types of profit for small businesses

Profit in the economy is a monetary ratio between costs and costs. products sold... How it is analyzed, how it is formed, and how it is distributed under conditions market economy, we will talk in the article.

Accounting, normal and economic profit

There are three types of accounting in economics - this is what is the difference between the price of goods sold and the cost of its production. Reward entrepreneurial activity called normal profit, it is the cost of production. And the difference between normal and booked profit is economic. Real according to the main criterion - the size, since the profit in the economy is just the size of the enterprise's income.

It arises provided that the total revenue not only covers, but also exceeds all internal and external costs. This includes the normal return on capital interest. Striving for greater profit is an incentive for entrepreneurs to use resources as efficiently as possible, reduce costs, master new technological advances, use scientific potential, achieve technological progress and open new industries.

Under these conditions, the total amount of income from the listed types of activities, including the main ones, also grows, since profit in the economy is, first of all, the balance gain, which is the total amount from all available types of activities.

How businesses generate income

The profits for the enterprises come, of course, from the main production. Ancillary activities bring only some of them, formed after the performance of non-industrial services - transport, construction, from the work of ancillary farms and enterprises selling products. In the same way, revenues (profits) are replenished through the provision of paid services to the population.

There is also non-sales activity for almost every enterprise, regardless of its size and significance. She also makes a profit.

The difference is calculated between penalties, fines, penalties, that is, the amounts paid and the amounts received: rent from renting out own premises, income from operating with packaging, and the like. This balance will be considered as profit from non-operating activities.

The financial result of the enterprise

The current conditions of the crisis, in which all enterprises of the country are placed without exception, forced to mobilize all available internal resources, which could, if not increase, then at least keep the existing profit at the same level. Calculation and planning of economic activities are now the main components of the successful functioning of the enterprise. Analysis, which determines the further course of the economic process, plays a huge role in this. Including - competent identification of ways to use profits.

Profit and its value show all the strengths and weaknesses of the enterprise, and the analysis of its activities helps to accept the optimal. For this, all economic processes and relations are scrupulously researched. The financial result of the enterprise, as well as the analysis of ways to generate income, determines the rational ways of structuring funds and their rational use. In the same way, analysis financial activities is a tool for forecasting both individual indicators and the entire economic profit as a whole.

Financial control

Through financial analysis the movement of cash flows is controlled, the rationality of the use of profit is checked. The profit should be checked for compliance with the standards and norms for the expenditure of material and financial resources, according to the expediency of costs.

Financial analysis has a certain information base - accounting statements. Its results are operated by both internal users (managers and management) and external users - creditors, owners, buyers, suppliers, exchanges, consultants, lawyers and even the press.

Of particular importance is the distribution of the company's profit, the study of key parameters, drawing up an accurate and objective picture of its state in financial plan... Such control has its own purposes, aimed at studying the methods of financial activities of the enterprise.

Goals

The main goal pursued by financial analysis is to obtain information on losses and income, structure, with all its changes in liabilities and assets, settlements with creditors and debtors, as well as distribution of the company's profits. The analyst or manager in this case is interested in and current state, and a projection to the near or distant perspective. These are the expected parameters of the financial condition.

Such goals can be achieved together with the solution of a whole set of certain interrelated tasks. Analytical tasks have to concretize all organizational, informational, technical, methodological possibilities. An assessment of the financial performance of an enterprise is always based on the results of the analysis. accounting statements.

Deductive method of analysis

The main principle of analytical reading of reports is deductive - from general to specific - which is repeatedly applied in the course of analysis. This is how the logical and historical sequence of events and economic factors is reproduced, the direction is revealed, the components of profit and the strength of their influence on overall results activities.

Basic methods

Six main methods of reading reporting documentation can be distinguished among the many existing ones:

Horizontal analysis. With it, each reporting item is compared with the previous period.
Vertical. The structure is determined by the final financial performance and the impact of each reporting item on the overall result is identified.
Trend analysis. Each position is compared with a number of previous ones, whereby a trend is determined - the main trend, dynamics this indicator, cleared of the contingencies of influence and personality in the characteristics of certain periods. The trend forms quite possible future indicators, thus making a long-term forecast for the profit of production.
Relative indicators and their analysis. This is a calculation of the interaction of individual report items or items in different forms reporting, defining their relationship.
Comparative, on-farm analysis, where individual summary reporting indicators are studied for the entire company, for subsidiaries and divisions. In addition, inter-farm indicators of this enterprise are compared with those of competitors. So count on modern enterprises profit in a market economy.
Factor analysis. The influence of individual factors on the result indicator is analyzed using stochastic or deterministic research methods. This reporting is direct, when the effective indicator is split into its component parts, and also synthesized (inverse), when individual elements of the report are merged into a general indicator of effectiveness.

External financial analysis

The features of external financial analysis are as follows:

its subjects are multiple, a large number of users are interested in information about the company's activities;
the goals and interests of the subjects of analysis are diverse;
there are standard methods, accounting and reporting standards;
the analysis is focused only on external, public reporting;
his tasks are limited due to the previous factor;
the results are open to users wishing to get acquainted with information on the activities of the enterprise.

However, there may also be underwater currents. If the financial analysis is based only on financial statements and by its nature looks like an external one, carried out outside the enterprise by the hands of its interested counterparties, government agencies or owners, it still does not allow revealing the secrets of the company's success, since the content of the external analysis is only certain factors. The components of profit and how to achieve them usually remain outside the analytical material, only its financial performance is known.

The above analysis is carried out in a certain way:

The absolute indicators of profit are analyzed.
Considered relative indicators profitability.
Checked financial condition, market stability, balance sheet liquidity, solvency of the enterprise.
The effectiveness of the use of loans is analyzed.
The financial condition of the enterprise is diagnosed and the rating of the issuers is made.

Internal financial analysis

The variety of economic information on the activities of enterprises is truly great; there are also many ways to analyze it. Data financial statements and the analysis carried out on their basis is called the classical method. Interior economic analysis finance - the main one, which is supplemented by other data from system accounting, data on industrial technical training, regulatory and planning information, etc.

The main value of this information is in optimizing control. For example, an analysis of advancing capital and its efficiency, the relationship between costs, profits and turnover is required. Interior management analysis delves into the data production accounting in order to conduct a comprehensive assessment of the economy and study all economic activities - whether its efficiency is high.

Features of management analysis:

results are focused on their own leadership;
all sources of information are used;
cannot be regulated from outside;
full complexity in conducting, the study of all the activities of the enterprise;
accounting, analysis, planning and decision making are integrated;
the results are as closed as possible to comply with commercial secrets.

Profit analysis

The activities of the enterprise in terms of financial results are reflected in a whole system of indicators that make up profit. Their systematic consideration presents a certain difficulty, since most of the indicators characterize not only the financial result, but have many differences in purpose. The choice for the participants in the commodity exchange becomes difficult, since the needs for information related to the real state of the enterprise are often not met. The administration is primarily interested in the mass and structure of the profit received, as well as the factors that influenced its value. Tax authorities want to receive information, as reliable as possible, about the balance sheet profit, which includes the sale of products, income after the sale of property and much more from the same series.

This means that the analysis of the terms of profit in the economy is not abstract, but quite specific analysis helping to develop a strategy of behavior aimed at minimizing losses, financial risks etc. Here, first of all, such elements of the enterprise's activity are studied as changes in indicators - each for a given analyzed period - their structure and changes are studied, the dynamics of changes for whole line reporting periods (naturally, in a generalized form).

The net profit remaining at the disposal of the enterprise - funds after the payment of all taxes and deductions - is spent, as a rule, on the needs of the enterprise itself, and here a detailed analysis is especially necessary. This is the expansion of production, and an increase in spending on non-production needs, and protection environment, and training, and the creation of social funds.

Gross revenues and profits are used in the development of estimates of the company's income and expenses for the coming financial year. These indicators reflect the costs associated with the production cycle. Gross profit does not take into account the amount of management or selling expenses, so it can be used to make forecasts in the short and medium term.

What is gross margin in simple terms

To determine this indicator, it is necessary to know the exact amount of the organization's income and the cost of products sold. Gross profit is the difference between income and expenses included in the actual cost of production. When calculating the total, you do not need to highlight tax liabilities.

The indicator is formed by subtracting from the total value of income for a certain period of time such expenses as:

production costs (payment of the cost of materials and raw materials, Maintenance used equipment);
payment of bills for consumed electricity, water supply;
wage.

Gross profit is the result of the company's operations, which is calculated at established accounting policies at intervals. Its value can be influenced by external and internal factors... What does the concept of gross profit of an enterprise include:

income that was received after the sale of manufactured products;
receipt of funds for services rendered or work performed;
resources obtained by logging enterprises;
gross profit is not only revenue from core activities, but also income transactions under contracts for the sale of equipment and other proprietary assets of the organization;
amounts received on the accounts of the company for the shares repurchased from it.

If the gross profit has decreased, this indicates a decrease in the level of profitability of production, a drop in the level of labor efficiency or the use of inappropriate logistics. Preventive measures will be actions to reduce costs, promote goods in the target segment, launch additional capacities to reduce average costs.

Gross profit and gross margin are different concepts. When calculating profit, variable and partially fixed costs are subtracted. For margin, it is typical to focus only on variable costs... Gross and net income is differentiated by the amount of tax liabilities and taxes payable. Net income is calculated on a gross basis by deducting any accrued taxes from it.

The statement that balance sheet profit is gross profit is incorrect. These terms cannot be identified. The value of the gross profit can be found on the account card 90. Balance sheet or taxable profit (gross profit is not used as a tax base) is reflected in the accounting in the amount of the balance on account 99.

Gross profit (loss) in accounting and reporting

Summing up the gross type of profit occurs by comparing the sum of the debit and credit turnovers of account 90, taking into account the breakdown of transactions by sub-accounts. The resulting balance must be debited to account 99. The financial result can be a loss or a profit (and gross profit is the difference between the debit and credit of one account). With the formed debit balance at the end of the month, a loss appears, credit balances indicate the profitability of the project. If gross profit is received, the transaction will be in the format D90.9 - K99. At the end of each reporting year, all sub-accounts on account 90 are closed.

When reflecting profit in the reporting documentation, negative indicators are entered without a minus sign. To indicate the unprofitable activity, the number is taken in parentheses. Gross profit is not shown in the balance sheet - there is no line for this. The form of the report assumes the entry of data only on the part of the profit remaining unallocated on a specific date.

Gross profit does not appear on the balance sheet, but it can be seen in the report on Form 2. The convenience of this form is that it makes it possible to trace the chain of payments. Gross profit in the income statement is shown in line 2100. The document template with code designations clearly demonstrates the procedure for calculating the indicator with the participation of lines 2110 and 2120.

Gross profit of the economy and enterprise: calculation formulas

The degree of efficiency of production cycles through profitability can be assessed on the scale of one company or the country as a whole. In the latter case, the gross profit of the economy is used, the formula assumes finding the difference between the value of GDP and the total costs of manufacturers to manufacture products. The resulting total shows how much profit residents have received or what losses they have incurred as a result of the sale of their goods.

What is the gross profit of an enterprise - the essence of the concept can be traced by the formula for its calculation:

Monetary Valuation of Products Sold - Cost sold goods- Production costs.

According to the report of form 2, calculations are carried out according to the scheme:

Line 2110 - Line 2120.

The calculated gross profit does not show the real income of a business entity, but the basis for analyzing the structure of production resources.

The profit of the enterprise includes the increment of the originally advanced value in the production and economic activity enterprises to ensure its activities. Profit can be defined and measured by the ratio of income and expenses of the enterprise.

Profit can serve as a source for improvement production processes and their extensions, a source of increasing size wages, issuing prizes. With the help of profits, the amount of dividends received by shareholders and owners is increased. Profit is the most accurate characteristic of an enterprise's activities.

Profit can come in various forms. Profit is classified by sources of formation, by the method of calculation, by the nature of taxation, by the nature of use and by the value of the final result of management.

In accordance with the calculation method, gross, net and marginal profit are distinguished. Gross profit is expressed in terms of monetary form net capital income. This profit represents the proceeds from the sale of products and the cost of these sales, excluding the notionally fixed management and distribution costs. Net income includes the profit that remains after deducting all expenses from the total income of the enterprise.

Profit margin includes the excess of revenue over variable production costs.

Gross and operating profit

Gross profit is the difference between the cost of goods and the net income that is earned in the process of sale. The cost price can be not only production costs, but also property taxes, land payments, the amount of other payments, excise duty, tax from owners Vehicle and etc.

Therefore, when considering different types Profit you need to understand that gross profit is always reduced by the sum of all payments and fees.

Operating income is received from the activities of the enterprise, with the exception of revenue, which is initially included in the balance sheet profit. Operating profit includes the following types of income: income at the difference in exchange rates, property lease, placement of assets that were written off earlier, income received from the sale of current assets, excluding financial investments.

Net profit of the enterprise

The net profit comes at the disposal of the enterprise only after the income tax is paid. This profit is most often used in two directions: the consumption fund and the accumulation fund.

PP = Revenue - Cost - UKR - PR - N

Here RBM - administrative and commercial expenses,

H - taxes,

PR - other expenses.

PE = FP + VP + OP - N

Here FP is the amount of financial profit,

VP - the size of the gross profit,

OP is the amount of operating profit,

PE = PDN - N

Here PDN is the amount of profit before tax

Other types of profit

If we consider the nature of the inflationary cleaning of profits, then we distinguish nominal and real profits. The nominal profit is indicated in the financial statements and corresponds to the balance sheet profit.

Real profit is the nominal profit that is adjusted for inflation. In order to determine the real profit, the nominal profit is correlated with the consumer price index.

In accordance with the sources of formation, the profit can be balance sheet, from the sale of products, from other operations. In accordance with the nature of taxation, profits are divided into taxable and non-taxable profits.

According to the final result, the profit can be normal, negative and positive. By the nature of use, profit can be distributed and capitalized.

Examples of problem solving

EXAMPLE 1

The task

Profit can be the basis:

1.deterioration of production processes,

Hello! In this article we will talk about related, but not identical, concepts: revenue, income and profit.

Today you will find out:

What is included in the company's revenue;
From what the income and profit of the company are formed;
What are the main differences between these concepts.

What is revenue

Revenue - earnings from the direct activities of the company (from the sale of products or services). The concept of revenue is found exclusively in business and entrepreneurship.

Revenue characterizes the overall performance of the enterprise. It is revenue, not income, that is reflected in accounting.

There are several ways of accounting for revenue in an enterprise.

The cash method defines revenue as real money received by the seller for the provision of services or the sale of goods. That is, when providing an installment plan, the entrepreneur will receive revenue only after the actual payment.
Another way of accounting is accrual. Revenue from it is recognized at the time of signing the contract or receiving the goods by the buyer, even if the actual payment will happen later. At the same time, advance payments are not related to such revenue.

Revenue types

Revenue in an organization is:

Gross- the total payment received for the work (or product).
Net- applied in. Indirect taxes (), duties and so on are deducted from gross revenue.

The total revenue of the enterprise consists of:

Revenues from core activities;
Investment proceeds (sale of securities);
Financial revenue.

What is income

The definition of the word "income" is not at all identical with the term "revenue", as some entrepreneurs mistakenly believe.

Income - the sum of all money earned by the company through its activities. This is an increase in the economic benefit of the enterprise due to the increase in the company's capital by the receipt of assets.

A detailed interpretation of the ways of generating income and their classification are contained in the Regulation on accounting "Income of organizations".

If cash proceeds are funds that enter the company's budget in the course of its main activities, then income also includes other sources of income (sale of shares, receiving interest on a deposit, and so on).

In practice, enterprises often carry out a variety of activities and, accordingly, have different channels for generating income.

Income - the general benefit of the company, the result of its work. This is the amount that increases the capital of the organization.

Sometimes the income is equal to the amount of the net revenue of the organization, but most often companies have several types of income, and there can be only one revenue.

Income is found not only in entrepreneurship, but also in the daily life of a private person who is not engaged in business. For example: scholarship, pension, salary.

Receiving funds outside the scope of business activities will be referred to as income.

The main differences between revenue and income are given in the table:

Revenue	Income
The result of the main activity	The result of both main and auxiliary activities (sale of shares, interest on a bank deposit)
Occurs only as a result of doing business	Allowed even for unemployed citizens (benefits, scholarships)
Calculated from the funds received as a result of the work of the company	Equal to revenue minus expenses
Cannot be less than zero	Let's admit going into a negative value

What is profit

Profit is the difference between total income and total expenses (including taxes). That is, this is the same amount that in everyday life could be safely put into a piggy bank.

In an unfavorable scenario and even with a large income, the profit may be zero, or even go into the negative.

The main profit of the company is formed from the profit and loss received from all areas of work.

Science economics identifies several main sources of profit:

Pioneering work of the company;
An entrepreneur's skills to orientate in the economic situation;
Application and capital in production;
The monopoly of the company in the market.

Profit types

Profit is divided into categories:

Accounting... It is used in accounting. On its basis, accounting reports are formed, taxes are calculated. Obvious, reasonable costs are deducted from total revenue to determine accounting profit.
Economic (excess profit)... A more objective indicator of profit, since when calculating it, all economic costs allowed in the work process are taken into account.
Arithmetic... Gross income minus miscellaneous costs.
Normal... Necessary income for the work of the company. Its value depends on the lost profit.
Economic... Equal to the sum of normal and economic profit. Based on it, decisions are made on the use of the profit received by the enterprise. Similar to accounting, but calculated differently.

Gross and net profit

There is also a division of profit into gross and net profit. In the first case, only the costs associated with the workflow are taken into account, in the second - all possible costs.

For example, the formula used to calculate the gross profit in trade is the selling price of a product minus its cost.

Gross profit is most often determined separately for each type of activity, if the company operates in several directions.

The gross profit is applied when analyzing the areas of work (the share of profit from which activity is greater), when the bank determines the company's creditworthiness.

Gross profit, from which all costs (credit interest, and so on) are subtracted, forms a net profit. It is charged to shareholders and owners of the enterprise. And it is the net profit that is reflected in and is the main indicator of the work of the business.

EBIT and EBITDA

Sometimes, instead of the understandable word “profit,” entrepreneurs come across cryptic abbreviations such as EBIT or EBITDA. They are used to assess the performance of a business when compared objects operate in different countries or are subject to different taxes. Otherwise, these indicators are also called cleared profit.

EBIT represents profit as it was before taxes and various interest. It was decided to separate such an indicator into a separate category, since it is located somewhere between gross and net profit.

EBITDA Is nothing more than profit without tax, interest and depreciation. It is used exclusively for evaluating a business and its characteristics. It is not used in domestic accounting. for trade equipment.

Thus, income is funds received by an entrepreneur, which he can spend in the future at his own discretion. Profit - the balance of funds minus all expenses.

Both income and profit can be predicted if we take into account the revenue for previous periods of work, fixed and variable costs.

The differences between profit and revenue are as follows:

The line between the concepts may not be clear for an ordinary employee, it does not matter to him how the revenue differs from profit, but for an accountant there is still a difference.