What is gross profit? How is it different from other measures of positive performance? What is the formula for calculating gross profit in 2020?

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To determine the effectiveness of the enterprise, which is expressed in profitability, it is necessary to find out the basic indicators.

It is determined by subtracting expenses from income. If the difference is greater than zero, then the entity, carrying out its activities, has made a profit.

It differs depending on what costs are taken into account when calculating it. If the result is negative, then this indicates a loss.

Key Aspects

There are several options for classifying profits. For reporting, the difference in the composition of the elements that form it and distinguishes the following types is used:

• margin;
• gross;
• clean.

All these indicators are necessary for reporting. In this article, we will consider gross profit, which in some sources is called balance sheet.

What it is

Speaking about what constitutes gross profit, you can consider several definitions:

To understand what is the peculiarity of this species, it is worth considering one more definition. Gross profit is the difference between revenue and the total of fixed and variable expenses.

In turn, the marginal, which in some sources is equated to VP, consists of the remainder of the proceeds minus only variable expenses.

Due to the fact that enterprises in many cases incur fixed costs in the course of their activities, marginal profit can be significantly lower than gross profit.

One of the definitions discussed above indicates that the calculation of gross profit does not take into account the payment of obligations to employees, the state, the return of money from the bank, as well as other persons.

This distinguishes it from net income. The formula for calculating the net profit of an enterprise looks like the difference between gross profit and unpaid liabilities.

It follows from this that gross profit is always greater than net profit and is intermediate between marginal and net profit. Each of these indicators is used in its own way in the conduct of calculations and accounting.

Why you need to know the indicator

Gross profit, like other types, is important for the enterprise. It is used for short and medium term planning.

That is, in the event that the commercial expenses of the enterprise and those associated with its management amount to no more than 5% of the costs of carrying out the main activity.

Short-term planning may include the calculation of the budget, as well as the determination of cash flows in the upcoming period.

At the same time, gross profit is important for enterprises engaged in the production of products, and not just its sale. This indicator allows you to determine the size and value of the technological cost.

It is worth noting that in order to long term planning this indicator is ineffective. In this case, it is best to calculate the margin.

And for the final budget, net income is best, as it displays the result of deducting all expenses without exception.

Speaking of net profit, you can consider another purpose of the gross. You can calculate the first indicator, knowing the second. In other words, you need to subtract liability costs from gross profit.

Legal regulations

Gross profit is the basis for determining and paying obligations to the budget in the form of taxes and other deductions.

Therefore, it is advisable to mention it in the following regulations:

As mentioned earlier, gross profit is displayed in the balance sheet. Thanks to this, it got its second name - "balance sheet profit". This is one of the main documents financial statements.

Therefore, the calculation and use of gross profit can be found from, which was approved by the relevant order of the Ministry of Finance of the Russian Federation, issued on 07/06/1999.

The formula for calculating the gross profit of an enterprise

Before considering the formulas for determining gross profit, it is worth considering in more detail its components.

From the definitions that were discussed above, we can conclude that in order to calculate gross profit, it is necessary to know revenue, which is the total income from the implementation of all types of activities.

It is worth considering in more detail what includes and how the costs used for calculation differ. As you know, they are divided into constants and variables.

Fixed costs are incurred equally in each period, regardless of the presence or absence, as well as the volume of the enterprise.

• depreciation deductions;
• and others.

Note that this type of expenditure includes wages (if it does not depend on output) and certain types of taxes, but they are not taken into account when determining gross profit.

Variable costs are those that directly depend on the implementation of the subject of its activities.

They include the following:

• the cost of purchasing raw materials, materials, fuel, etc. (for manufacturing enterprises);
• expenses for the acquisition of subsequently sold goods (for trade enterprises);
• management expenses;
• shipping costs when purchasing;
• shipping costs when sent to the consumer;
• and others.

The change in the value of these costs depends both on the enterprise itself and on external factors, such as, for example, price changes.

Video: profit formula

Knowing what you need to consider when determining gross profit, you can begin to consider how to calculate it.

How to calculate correctly (methods)

There are several methods for calculating gross profit. The type of formula that is used for this purpose depends on their choice.

The general formula looks like this:
The table shows its decoding:

You can see the meaning of these articles in your "" or in the table provided by us:

through the average percentage

For companies operating in trade, as opposed to manufacturing, it is better to use the average percentage method, since it is important for them to calculate the change in the margin of goods. For this, the following algorithm is used.

Find the average percentage of gross income. For this, the following formula is used:
Knowing the percentage, we use it in the formula to determine:

From the table you can find out what indicators are used in these formulas:

Indicator	Decryption	Units
VP	Gross profit	rubles
T	General turnover	rubles
P	Percentage of gross income	%
TNn	Trade markup for goods at the beginning of the period	rubles
TNp	Trade markup for goods for the reporting period	rubles
TNv	Trade markup for retired goods	rubles
OK	Remaining goods at the end of the period	rubles

By product range

If a trading company distributes several types of goods, it is advisable to use the assortment method.

Below is the formula for calculating gross profit from sales:

T	Trade turnover
RN	Estimated threshold premium
1 (2, n)	The index at the bottom indicates the product group

Also:

By turnover

To use this formula, you must determine the gross income, for which the following formula is used:

To calculate it, you need to determine the estimated trade markup using the formula:

Everything conventions according to the listed formulas, you can see in the table. This method is advisable to use if the company sells one type of product. For distributors with a large assortment, a different method is used, as indicated above.

According to the rest of the goods

Another method for determining gross profit is the calculation of indicators for the rest of the goods. For this, the formula is used:

All types of trade margins are measured as a percentage, therefore, this indicator too.

Calculation example

Consider the definition of gross profit using the basic general formula. To do this, take as an example the activity of a manufacturing enterprise.

AOO "Laguna" manufactures umbrellas for the beach. According to financial report for two years, their revenue, which is indicated in article 2110 for 2016, amounted to 130,000 rubles, and for 2020 - 190,000.

At the same time, the cost of goods specified in article 2120 is 50,000 for 2016 and 80,000 for 2020.

According to these conditions, the gross profit left in 2016 130,000 - 50,000 = 80,000, and in 2020 190,000 - 80,000 = 110,000.

Based on this, we can conclude that the gross profit has increased. What influenced this, allows you to determine the analysis of the data. You can make such calculations and prepare reports in 1 C or in Excel.

When is factor analysis used?

Factor analysis is used if it is necessary to determine how a change in one indicator affects another. For clarity, we can use the above example.

In this case, the revenue for the sale of manufactured goods increased. Despite the increase in expenses, the company received a larger profit than in the previous period.

If revenue remained the same and expenses changed, then gross profit would decrease.

This is possible in the case of the sale of the same amount of goods and with an increase in the rent of premises.

The most striking indicator of the dependence of one variable on another in the economy can be considered the dependence of supply and demand on price and vice versa.

As you know, the lower the price, the higher the demand, while the supply is lower. And the higher the price, the greater the offer from manufacturers and the less interest in the product from buyers.

Gross profit, like its other types, provides for the deduction of expenses from income. But in this case, both variable and fixed costs are used. This distinguishes it from the margin.

The profit of the enterprise is the most important indicator that reflects the result of its activities and indicates how efficiently and effectively the production resources were used. In a broad sense, profit is understood as a positive difference between income and costs, a negative one is a loss. Depending on the calculation method, profit is distinguished:

• From sales - in its calculation, in addition to the cost, management and commercial expenses are taken into account.
• Gross - gives an assessment of the results in a broad sense, is the difference between the total sales revenue and the cost of production.
• Before tax — when calculating it, operating income and expenses, as well as income and expenses from activities not related to the sale of products, are additionally taken into account.
• Net - calculated after tax, calculated minus tax liabilities.

The company can make a profit or loss as a result of its activities. These indicators are subject to analysis, which will give an understanding of what factors influenced the result, to what extent and what actions should be taken to change the situation for the better.

Goals of the analysis

The analysis of the indicator will solve the following tasks:

• assessment of the compliance of the financial result obtained with the planned profit indicators, taking into account the volume of products sold;
• assessment of strategic objectives in terms of profit;
• determination of factors and components, as a result of which the actual profit indicator deviated from the planned one;
• determining methods by which it will be possible to improve the indicator of profit volume.

The analysis enables the company's management to determine the main ways for the further development of the enterprise, to find hidden reserves to improve the financial result. The results obtained help to identify "bottlenecks", adjust plans, increase the efficiency of resource use and the company's activities as a whole.

Information for evaluation

To conduct a comprehensive analysis of the indicator, the company's management uses information from:

• financial statements;
• profit register;
• financial plan.

Ways to increase profits

Increasing profits can be achieved by increasing revenues or reducing the costs of the enterprise. Sales revenue can be increased by increasing sales volumes or product costs. An increase in cost can have the opposite effect - a drop in sales. Therefore, this method is used less often, usually during times of rising inflation.

Before you raise the cost, you need to study the market, the offers of competitors and the expectations of consumers. There are non-price methods to stimulate profit growth. These include a balanced marketing policy, expansion (updating) of the range, improving the quality of goods.

Cost reduction can be achieved through efficient use of resources. Today, this is actively used innovative technologies, which allow more efficient use of fuel and raw materials, labor resources, reduce depreciation. You can also reduce costs through competent logistics, the use of staff optimization (outsourcing), the use of modern cost management methods.

It is necessary to evaluate profits, as this allows you to identify deviations from planned indicators and respond to external challenges in a timely manner. Based on the analysis, the management of the enterprise can develop a set of measures that can qualitatively improve financial results.

Profit is the resulting difference between the income that was received as a result of the sale of products and the financial costs associated with the production of goods. This indicator is considered the most important for the economy. Only he is fully capable of displaying the level of efficiency of any organization. The concepts of "profit" and "revenue" differ from each other. The resulting amount, formed after the amount of costs is deducted from the proceeds, is profit. That is, the formula for calculating profit can be expressed as follows:

Profit = Revenue - Costs

Net income represents the tangible assets that ultimately remain after deducting deductions, all taxes and other payments from the balance sheet income. An indicator such as net profit is used to calculate the necessary investments in the production process, to plan and organize the main reserve funds, as well as to increase current assets.

If you speak in in general terms, the amount of net profit directly depends on several factors:

The tax burden on the enterprise, as well as additional deductions;
- the amount of revenue;
- the calculated cost of production and so on.

In order for the calculation of net profit to be correct, it is first necessary to carry out the following operations in stages:

Calculate the sum of all costs that are associated with the production of products, taking into account the cost of the material;
Calculate an indicator such as gross income. To calculate gross income, it is necessary to subtract the amount of expenses associated with the production of goods from the amount of funds received from the sale of products;
As a result, you need to use the formula: Net profit \u003d Gross income - mandatory payments.

Profit Declaration

Before preparing reports, you need to carefully check your counterparties. Especially those who are your debtors. Don't wait three years. Please note that since last year, important amendments have come into effect in the Civil Code of the Russian Federation.

Composition of the income tax return:

Title page;
section 1 "Amount of tax payable to the budget, according to the taxpayer";
sheet 02 "Tax calculation";
Appendix No. 1 to sheet 02 "Income from sales and non-operating income";
appendix No. 2 to sheet 02 "Costs associated with production and sales, non-operating expenses and losses equated to non-operating expenses";
Appendix No. 3 to sheet 02 “Calculation of the amount of expenses on operations, the financial results of which are taken into account when taxing profits, taking into account the provisions of Articles 268, 275.1, 276, 279, 323 of the Tax Code of the Russian Federation (except for those reflected in Sheet 05)”;
appendix No. 4 to sheet 02 "Calculation of the amount of loss or part of the loss that reduces the tax base";
appendix No. 5 to sheet 02 "Calculation of the distribution of advance payments and corporate income tax to the budget of the subject Russian Federation an organization with separate subdivisions”;
Appendix No. 6 to sheet 02 "Calculation of advance payments and tax to the budget of a constituent entity of the Russian Federation for a consolidated group of taxpayers";
Appendix No. 6a to sheet 02 "Calculation of advance payments and tax to the budget of a constituent entity of the Russian Federation for a member of a consolidated group of taxpayers without separate subdivisions included in it and (or) for its separate subdivisions";
Appendix No. 6b to sheet 02 “Incomes and expenses of members of a consolidated group of taxpayers who formed a consolidated tax base for the group as a whole”;
sheet 03 "Calculation of corporate income tax withheld by a tax agent (source of income payment)";
sheet 04 "Calculation of income tax calculated at rates different from the rate specified in paragraph 1 of Article 284 of the Tax Code of the Russian Federation";
sheet 05 "Calculation of the tax base for corporate income tax on operations, the financial results of which are taken into account in a special manner (except for those reflected in Appendix No. 3 to sheet 02)";
sheet 06 "Income, expenses and tax base received by a non-state pension fund from the placement of pension reserves";
sheet 07 "Report on the intended use of property (including funds), works, services received within the framework of charitable activities, targeted revenues, targeted financing”;
Appendix No. 1 to the tax declaration "Income not taken into account when determining the tax base, expenses taken into account for tax purposes by certain categories of taxpayers";
Appendix No. 2 to the tax declaration “Information on income individual paid to him by a tax agent, from transactions with securities, transactions with financial instruments futures deals, as well as when making payments on securities of Russian issuers.

How to fill out an income tax return

The procedure for filling out an updated income tax return is also approved by Order of the Federal Tax Service No. ММВ-7-3 / [email protected]

All organizations must include the title page, subsection 1.1 of section 1, sheet 02, as well as annexes No. 1 and 2 to it in the declaration.

The remaining sheets, subsections of section 1, as well as appendices 3-5 to sheet 02, are submitted only by those organizations that carry out the relevant operations and have indicators for them.

At the same time, subsection 1.2 of section 1 is not included in the declaration for the year. Annex No. 4 to sheet 02 is submitted as part of the declaration for the first quarter and year. Sheet 07 is filled in by organizations upon receipt of funds for targeted financing, targeted revenues and other funds only in the annual declaration.

Organizations that pay advance payments on a monthly basis based on the actual profit received submit a declaration in the specified amount for the first quarter, half a year, 9 months and a year. Based on the results of other reporting periods (January, January - February, January - April, etc.), the title page, subsection 1.1 of section 1 and sheet 02 are filled in. If there are relevant operations and (or) separate divisions, subsection 1.3 of section 1, Appendix No. 5 to sheet 02 and sheets 03 and 04.

Organizations with separate subdivisions, at their location, submit a separate declaration consisting of title page, subsection 1.1, subsection 1.2 of section 1 (when monthly advance payments are made during the reporting (tax) periods) and Appendix No. 5 to sheet 02 with indicators related to this separate subdivision or to a group of separate subdivisions located in one subject of the Russian Federation, if tax is paid through one unit.

There have been changes in paragraph 3 of Art. 256 of the Tax Code of the Russian Federation. So, if an object is transferred for reconstruction for a period of more than 12 months, then for the purposes of tax accounting, depreciation was stopped. And that was a headache for the accountant. Moreover, most often during the modernization part of the object continues to be used.

Organization profit

The profit of an organization is the difference between revenue and the cost of products or services provided.

In the market, the enterprise acts as an independent commodity producer. By selling its products, the company independently sets the price for it and receives trading revenue. But this does not mean at all that the activity will be profitable. To determine the final financial result, it is necessary to compare revenue with the cost of goods, that is, with the sum of all costs for its production and sale.

Regarding profit, it is important to note the following:

1) The amount of revenue exceeds the cost of production - the company made a profit.

2) If the profit is equal to the cost of the product, then the company could only recover its costs incurred for its production and sale.

3) If the amount of profit is less than the cost of production, then this is a negative result. The company suffered a loss, which could lead to its bankruptcy.

The income and profit of the organization is the main source for financing the activities of the company. The gross income of a firm is the proceeds from the sale of products, goods and services minus all production costs, including wages.

Profit is the most important indicator of the commercial and economic activities of the company. The calculation of the organization's profit is carried out in value terms.

In a market economy, a company should strive, if not to get the maximum profit, then to achieve such results that will allow it to consolidate its position in the market, produce competitive products and ensure the dynamic development of its activities.

Profit is the most important criterion in a market economy. This is the meaning entrepreneurial activity, its main engine. If a businessman makes a profit that covers only production costs, then this is uneconomical. There is no point in running such a business.

The main source of the origin of profit is the essence of entrepreneurial activity. The stimulating essence has a dual character: In one situation, it is an effective incentive for entrepreneurship. In a market economy, everyone receives their income: a businessman - profit, and staff - wages. In another case, profit has an exploitative nature. An entrepreneur can partially appropriate the results of the work of his employees. That is, in certain cases, the amount of profit is proportional to the level of wages. And, if the owner of the company increases profits by reducing the payment of wages to employees, then this part of the income will have an exploitative nature.

Of course, everyone cannot receive the same income, but such lawlessness should not be happening, as this is contrary to the canons of a market economy.

Profit is of great importance for the state as a whole and for all its sectors of the economy.

This is the most important performance indicator and the financial result of the company. Profit is the basis for calculating the profitability of the enterprise (the ratio of profit to the cost of production). Accounting for the profit of the organization is also of great importance, since all the activities of the company depend on it.

Profit is:

The main source of equity capital formation for any enterprise, financing of current activities, production development;
the main source for enhancing the firm's movable and immovable property;
the main protection of the enterprise from bankruptcy. Also in this case, the rule works: “profit - fixed assets”. In this scheme great importance has its regularity in the required size;
the main source of satisfaction of national needs, since profit is the basis for calculating the series of taxes that fill the state budget.

Through profit:

1) The revenue part of the budget is formed.
2) Objects of social infrastructure are being developed: schools, kindergartens, hospitals and other institutions.
3) The country's defense is financed.

The larger the profit margin of enterprises, the more stable the national economy and its currency. There is a macro growth economic indicators, and as a result, the level of inflation decreases, the material provision of the population improves.

Analysis of the organization's profit allows you to highlight its main functions:

1) Firstly, profit reflects the economic effect that was achieved as a result of the company's activities. If the company is profitable, then this means that its income is greater than all the costs that are associated with the activities carried out. However, not all aspects of a firm's performance can be measured in terms of earnings. And such a universal indicator cannot exist. To evaluate the production and economic activities of the company use a whole system of indicators. The main value of profit is that it determines the financial result.
2) Secondly, it performs a stimulating function. Profit is not only the financial result of the enterprise, but also the main source for the formation of equity capital. The company is interested in obtaining maximum profit, since the part of it remaining after paying taxes and other payments is used to expand the business, social development companies, employee bonuses.
3) Thirdly, it is the main source of creation of budgets of different levels. Due to the payment of taxes, it influences the formation of the budget, guarantees the fulfillment by the state of its functions, financing of investment, social programs.

There are three main sources of profit generation:

The first one is formed due to the monopoly of the company for the production of one or another type of product, that is, the uniqueness of the product is meant. In order to maintain this source of profit, it is necessary to regularly upgrade products and improve their quality. It is also necessary to keep in mind the antitrust policy of the state and the growing competition from other companies in the market.

The second source - the formation of the profit of the organization is associated with the entrepreneurial and production activities of the company. This applies to almost all firms. This source will be effective only if the market conditions are studied, and it is also possible to constantly adapt to all changes taking place in the market. To accomplish these tasks, it is necessary to marketing research.

The amount of profit received in this situation will depend on:

A) from right choice production strategy for the production of products or the provision of services (you need such products that will be in demand in the market);
b) from the creation of competitive conditions for the sale of products (price, terms of delivery, service);
c) on the volume of output of goods (the more products are produced, the greater the profit margin);
d) from the structure of reducing the cost of production.

The third source of profit is formed from the innovative activity of the enterprise. As a result, products are constantly updated, their quality and competitiveness increase, sales volumes increase, and, accordingly, profits.

Types of enterprise profit

According to Accounting Regulation No. 43 "Accounting Reports", approved by order of the Ministry of the Russian Federation, each enterprise must keep financial statements, including a report in form 2. It is called the "Profit and Loss Statement". In its form, all types of profits that the company can receive are indicated. Let's consider them in more detail.

Gross profit is the difference between the proceeds from the sale of goods, services and the cost of the same products. The amount of profit from sales is influenced by such criteria as the cost of selling products, management costs, if they are associated with the main activity of the company.

At the next stage, taxable profit (loss) is determined.

When calculating it, the following must be taken into account:

The amount of profit on which tax has already been paid;
profit that falls under the benefits provided to the enterprise;
income that falls under a special tax regime;
profit, which increases the base for tax calculations due to the excess of limited expenses (training of personnel, advertising costs, payment of interest on a loan, depreciation).

You should also highlight net income. It is used for the following purposes:

Development of new directions of production;
payment of dividends and other material payments to the founders, owners and shareholders of the company;
formation of a consumption fund;
payment of fines for violation of legislation on environmental issues, overpricing, late payment of budget payments, tax evasion.

In order for the company's activities to be profitable, it is necessary to regularly conduct financial and factor analysis, calculate the final results, and compare them with the indicators of past periods.

Gains and losses report

The profit and loss statement characterizes the results of the organization's activities for the reporting period and shows how it received profits and losses (by comparing income and expenses).

The income statement, along with the balance sheet, is an important source of information for a comprehensive profit analysis.

The information presented in the report makes it possible to assess the change in the organization's income and expenses in the reporting period compared to the previous one, analyze the composition, structure and dynamics of gross profit, sales profit, net profit, and also identify the factors that form the final financial result. Summarizing the results of the analysis, it is possible to identify untapped opportunities to increase the organization's profits, increase its profitability.

The information presented in the income statement allows all interested users to conclude how effective the activity of this organization is and how justified and profitable investments in its assets are.

In world practice, several options for constructing a profit and loss statement are used.

In this case, the following classification bases can be distinguished:

Cost classification approach:
- location of indicators;
- the method of obtaining financial results;
- the method of disclosing the difference between income and expenses.

Depending on the approach to the classification of costs, cost and cost formats are distinguished. International Financial Reporting Standards use different terminology.

IFRS 1 Presentation of Financial Statements provides two alternative classifications of operating and other costs: by nature of costs (natural format) and by purpose (functional format).

In the natural format (cost format), costs are classified as follows:

materials;
- payroll costs;
- depreciation charges, etc.

An important difference formats of costs and costs is a reflection in the natural format of changes in stocks of finished goods and work in progress.

The functional scheme of cost distribution assumes the grouping of costs into classes in accordance with their function, for example: cost of sales: selling expenses; administrative expenses, etc.

Companies using functional diagram expenditure classifications should disclose Additional information on the nature of expenses, including depreciation and wages.

In practice, the income statements of most companies are a combination of natural and functional schemes:

1. According to the location of indicators, one can distinguish sequential, parallel and matrix forms of the income statement.

In a parallel form, expenses are recorded on the left, income on the right (or vice versa), and the financial result is reflected on the side where the excess was achieved.

In a sequential form, the entries are made from top to bottom: income, expenses (or vice versa), financial result.

In a matrix (chessboard) form, rows reflect expenses, columns - income (or vice versa).

2. According to the method of obtaining the financial result, profit and loss statement formats are distinguished, compiled by one-step and multi-step methods.

With a multi-step method, intermediate financial results are calculated.

3. According to the method of disclosing the difference between income and expenses, the full and balanced formats of the income statement are distinguished. The choice of one of the formats depends on the priority of visibility or informativeness.

IN full format all amounts of income and expenses are shown in full. In the balanced format, income is the difference between income and expenses. The statement of financial results can reflect either the turnover (gross method) or the balance (net method) of the resulting accounts. The gross report contains more information and more fully reveals the structure of income and expenses. In this case, a distinction is made more clearly between the report and the balance: the report fixes the turnover, the balance - the balance. The net report carries less information, but presents it in a more convenient form.

The Profit and Loss Statement, presented as part of the reporting forms approved by the Order of the Ministry of Finance of the Russian Federation “On Forms of Accounting Statements of Organizations” No. 66n, is compiled according to the cost format, in a multi-step way, using the gross method with a vertical arrangement of indicators.

The profit and loss statement in the Russian Federation is based on the classification of income and expenses established by Accounting Regulations 9/99 “Income of the organization” and 10/99 “Expenses of the organization”.

For purposes accounting and disclosures in the financial statements income is divided into income from ordinary activities and other income, and expenses, respectively, into expenses from ordinary activities and other expenses. The organization makes this distinction independently based on the nature of its activities, the type of income and expenses and the conditions for their receipt. Ordinary activities, as a rule, include the type of activity specified in the charter and constituent documents. When registering legal entity in the bodies of territorial statistics, such types of activities of the organization are assigned a code of types economic activity(OKVED).

In addition, ordinary activities include receipts that are significant in the total amount of income and are of a regular nature.

In the income statement, income is divided into revenue and other income (paragraph 18 of PBU 9/99 “Income of the organization”).

Other income and other expenses related to them may be shown in the report as a net, but subject to two conditions:

They are not essential characteristics of the activity;
- such reflection is allowed by the accounting rules (clause 18.2 PBU 9/99 "Income of the organization" and clause 21.2 PBU 10/99 "Expenses of the organization").

Expenses are subject to recognition in accounting, regardless of the intention to receive revenue, other and other income (clause 17 PBU 10/99 "Expenses of the organization").

In the profit and loss statement, expenses are divided into the cost of goods sold, products, works, services, commercial, administrative expenses and other expenses (clause 21 PBU 10/99 "Expenses of the organization").

PROFIT AND LOSS STATEMENT ANALYSIS

Profit and loss statement (form No. 2) is one of the main forms of financial statements. Profit and loss statement characterizes the financial results of the organization for the reporting period.

Form No. 2 reflects the following indicators:

The value of the balance sheet profit or loss from the sale of products;
- operating income and expenses;
- income and expenses from other non-sales activities;
- the costs of the enterprise for the production of products;
- selling and administrative expenses;
- the amount of income tax;
- net profit.

Profit and Loss Statement is the most important source for analyzing the profitability of the enterprise, the profitability of production and determining the amount of net profit.

The income statement must contain at least the following line items:

Revenue;
- financing costs;
- share of profits and losses of associated companies, according to joint activities accounted for using the participation method;
- profit or loss before tax;
- tax expenses;
- net profit or loss;
- results of extraordinary circumstances;
- profit or loss of the minority interest;
- profit or loss of the owners of the parent company.

Cost analysis

The profit and loss statement is developed by companies independently. The format of this report, first of all, depends on the chosen order of the analysis of expenses. IFRS provides that expenses should be allocated to subclasses. The analysis can be carried out according to one of two options - the method of the nature of expenditures or the method of the function of expenditures.

Analysis of expenses by nature is usually used in small companies where there is no need to allocate operating expenses by function. In this format, there is an article "Changes in inventory and work in progress". It represents the difference between their estimated number at the beginning and end of the period. It is taken into account with a minus sign if the value of the residuals decreases, and with a plus sign if the value of the residuals has increased. Analysis of spending by function may provide more meaningful information, but is more subjective than the previous method. Let us give an example of the comparability of the two approaches.

The company can choose any analysis of expenses when compiling the income statement and, accordingly, the format of the report.

PROFIT AND LOSS RATES

The main purpose of the Profit and Loss Statement (Form No. 2) is to characterize the indicators of the organization's financial performance for the reporting period, such as:

Gross profit;
- profit (loss) from sales;
- profit (loss) before taxation;
- net profit (loss) of the reporting period.

The explanatory notes to the balance sheet and income statement disclose information related to the accounting policies of the organization, providing users with additional data that is not appropriate to include in the balance sheet and income statement, but which they need to really assess the financial position of the organization, financial the results of her activities.

The essence of profit

According to K. Marx, profit is a converted form of surplus value. Why does K. Marx call it not just a form, but a transformed form of surplus value? In this regard, two things should be noted. One follows from the fact that, as noted above, the source of surplus value is directly variable capital v. However, the division of capital into fixed and variable is hidden in the capitalist production costs k, since from the point of view of the needs of economic practice, it is important for the entrepreneur to have a completely different division of his capital - into fixed and circulating. Hence it appears to him that the profit he has received is the product not only of the variable capital, but of the entire advanced capital K.

Thus, the converted nature of profit lies, first of all, in the fact that, from the point of view of a businessman, it appears as the result of the functioning of all advanced capital, although the direct source of its material basis (surplus value) is variable capital, because surplus value is the materialization of surplus labor . At the same time, it is also true that profit is the product of all advanced capital, since variable capital, as a direct source of surplus value, cannot create it without constant capital.

The second circumstance is that, as a rule, the profit received by the entrepreneur differs quantitatively from the surplus value produced by his employees. This is due to the fact that the profit is not just produced, but also realized by surplus value. In other words, the amount of profit depends both on the conditions of production (which determine the amount of surplus value) and on the conditions for the sale of goods, that is, primarily on the ratio of supply and demand for them (which does not directly affect the volume of surplus value).

For example, if the cost of a product is k + m, and the selling price is higher than this value due to an excess of demand for this product over its supply, then the profit P will be greater than the surplus-value m. When the price of a commodity falls below its value k + m, as a result of the demand for the corresponding commodity being lower than its supply, then the profit P will be less than the surplus-value m contained in it. Thus, the profit , as well as the price of a commodity, are directly conditioned in their magnitudes (in contrast to the surplus value and the cost of a commodity) by the situation prevailing on the market, where supply and demand rarely coincide.

Profit calculation

Cost types

Formulas

Profit calculation is the process of determining the amount that an enterprise has left after deducting certain expenses from the income received. After all, the mere presence of revenue does not mean that the company is doing well.

Cost types

Before calculating the profit, it is necessary to determine the types of costs. They can be divided into variables and constants.

Variable costs are those costs that affect the cost of production. Their amount is directly related to the volume of production. These are raw materials and materials, piecework wages for workers, some taxes, etc.

fixed costs do not depend (or slightly depend) on production volumes. These are rent payments, utility bills, salaries of employees on the salary system, taxation, etc.

You can separately name operating expenses (associated with the process of processing raw materials into a finished product) and commercial (associated with sales - advertising, packaging, shipping commissions for sales agents, etc.).

It is not always possible to draw a clear line between these types.

The formula by which the profit is calculated depends on what kind of value you want to calculate. But in general, this is revenue minus costs. The result can be both positive and negative (if the company suffers losses).

For example, profit (P) could be:

Gross (net return on invested capital): Pval. = Revenue – Variable Costs
net (the amount remaining after deducting all expenses from total income): Pchist. = Revenue - Variable and Fixed fees - Other costs and taxes
real (adjusted for inflation, when nominal returns are correlated with the consumer price index)
before tax (the same as net, only without deducting taxes), etc.

Thus, the method by which the calculation of profit is carried out is selected depending on which indicators need to be analyzed.

Revenue from sales

Profit is an important indicator that characterizes the performance of a company. The goal of any activity is to get more profit at minimal cost. The main indicator of business performance is the profit from sales, which is reflected in the accounting and statistical reporting.

The profitability of the company, the movement of its cash, and the turnover of assets depend on the amount of revenue and profit from the sale of products. Each entrepreneur is looking for ways to maximize profits, and for this you need to know everything about it: formation, calculation and factors of influence.

What does profit show?

Profit from sales is an indicator that evaluates the functioning and efficiency of the company. The level of profit should be sufficient to carry out normal activities.

Performance efficiency can be assessed by comparing the profit of the reporting period with the indicators of previous periods. If profits have increased, then the company has worked effectively.

The indicator of profit from sales is calculated by the difference between gross income and expenses for the sale of goods.

The form for calculating profit from sales is as follows:

Sales profit = Gross profit - Cost of selling goods - Management expenses.

Gross profit is calculated as the difference between sales revenue and cost of sales.

Factors affecting performance

To find reserves for profit growth, it is necessary to determine on what components it depends. Its size is influenced by internal and external factors.

The amount of profit from sales is influenced by such internal factors:

Trading revenue;
cost of goods;
volume of sales;
cost of goods sold;
the cost of selling products;
administrative expenses.

Increasing the volume of sales of cost-effective products contributes to higher profits, which leads to financial growth of the company. Sales of unprofitable goods affect the profit in the direction of its reduction.

Profit also increases with an increase in the share of cost-effective goods in the structure of the range of goods sold; if products with low profitability prevail in the range sold, then profit decreases.

A decrease in the cost of goods sold allows you to increase profits, and an increase in the cost of goods sold leads to a decrease in profits. The costs that are most susceptible to this dependence include selling and administrative costs.

Changes in commodity prices also affect sales. An increase in prices leads to an increase in profits, in the opposite case - to its decrease.

Businessmen have the ability to influence all these factors and change them depending on the need. Factor analysis allows you to identify reserves of sales efficiency and make optimal management decisions. To conduct such an analysis, the financial statements “Profit and Loss Statement” of the enterprise are involved.

The company has no influence on external factors that depend on the state of the market where sales are carried out.

These factors include:

Deductions for depreciation;
the cost of raw materials for the production of products;
market conditions;
natural and climatic conditions acting as force majeure circumstances;
state policy in the field of taxes, fines, interest rates.

These factors do not have a direct impact on profits, but they can make the cost of goods and the volume of their sales dependent.

Sales Profit Calculation

When planning the work of the company, it is necessary to take into account the expected indicators of profit from the sale of products.

The easiest way to calculate planning is with the help of profitability. This method takes into account the results of past periods, which are taken from the accounting reports and based on them, the expected profit is calculated.

Profit from sales \u003d Production volume x Expected cost x Profitability of the previous period.

For a more complete and reliable forecast, today various analytical and financial programs are offered that take into account all the main factors. To get the maximum information, you need to take a longer period of time for the production activity of the enterprise and take into account more data. In such calculations, current economic indicators are taken into account: inflation, changes in legislation, market conditions.

The calculation of profitability in an enterprise is an important element in business management. Such an operation can be done by any leader, and it will not take much time, but the result will be obvious - profit will increase and the company's performance will improve.

Product profit

Profit from the sale of products is defined as the difference between the proceeds from the sale of products without value added tax and excises and production and sales costs included in the cost of production.

It follows from the above definition that its origin is associated with the receipt of gross income by an enterprise from the sale of its products (works, services) at prices that are formed on the basis of supply and demand. Gross income of the enterprise - proceeds from the sale of products (works, services) minus material costs - is a form of net production of the enterprise, includes wages and profits.

The labor collective is interested both in increasing wages and in the growth of profits, since the latter, in a competitive environment, is a source of not only survival, but also the expansion of production, and, consequently, the growth of the well-being of the employees of the enterprise, their standard of living. It also follows from this that the mass of profit and gross income characterizes nothing more than the size of the effect obtained as a result of the production and economic activities of the enterprise.

In the conditions of market relations, an enterprise should strive, if not to obtain maximum profit, then at least to the amount of profit that would allow it not only to firmly maintain its position in the market for its goods and services, but also to ensure the dynamic development of its production in a competitive environment. Ultimately, this involves knowing the sources of profit generation and finding methods for the best use of them.

In the conditions of market relations, as world practice shows, there are three main sources of profit:

The first source is formed due to the monopoly position of the enterprise in the production of a particular product or (and) the uniqueness of the product. Maintaining this source at a relatively high level implies constant product updates. Here, one should take into account such opposing forces as the antitrust policy of the state and growing competition from other enterprises;
the second source is directly related to industrial and entrepreneurial activities. It applies to almost all businesses. The effectiveness of its use depends on the knowledge of market conditions and the ability to adapt the development of production to this constantly changing environment. It all comes down to relevant marketing. 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.); thirdly, on the volume of production (the greater the volume of production, the greater the mass of profit); fourth, from the structure of production cost reduction;
the third source stems from the innovative activity of the enterprise. Its use involves the constant updating of products, ensuring their competitiveness, growth in sales volumes and an increase in the mass of profits.

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. Under the sale of products is understood not only the sale of manufactured goods that have a natural-material form, but also the performance of work, the provision of services. The balance sheet profit as the final financial result is revealed on the basis of the 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 quarter, year.

The balance sheet profit includes three enlarged elements: profit (loss) from the sale of products, performance of work, provision 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-operating transactions.

Profit from the sale of products (works, services) characterizes the net income generated by the enterprise. The remaining elements of the balance sheet profit mainly reflect the redistribution of previously created income.

Let us 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, the performance of work, the provision of services. It is equal to the difference between the proceeds from the sale of products (works, services) at current prices and the costs of its production and sale.

Revenue is taken into account without value added tax and excises, which, being indirect taxes, go to the budget. The amount of markups (discounts) received by trade and supply and marketing enterprises involved in the sale of products is also excluded from the proceeds. Enterprises that export products also exclude export tariffs directed to the state revenue. At the same time, cash receipts associated with the disposal of fixed assets, tangible (current) and intangible assets, the sale value of currency values, securities are not included in the proceeds.

The composition of the costs for the production and sale of products (works, services) included in the cost price is regulated by law. The costs that form the cost price are grouped according to the following elements: material costs, labor costs, social contributions, 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 production, determined by the volume of products sold. In physical terms, it includes the balance of finished products at the beginning of the reporting period that were not sold in the previous period, and the output of marketable products of the reporting period minus that part of the products that cannot be sold at the end of the reporting period. A period is a quarter or a year. The composition of the balances of unsold products at the beginning and end of the period depends on the method of accounting for revenue chosen by the enterprise - upon receipt of money to the settlement account (cash) of the enterprise or upon shipment of products, settlement documents for which are presented to the buyer.

Profit from the performance of work and the provision of services is calculated similarly to profit from the sale of products. The formation of revenue is closely related to the features of the work and services performed and the forms of payment used.

For example, in construction organizations, revenue reflects the value of completed construction projects or work performed under contracts and subcontracts. It is determined by the documents that are the basis for settlement between customers and contractors (subcontractors). To determine the profit, the actual cost of the delivered works is used. In trade, supply and marketing enterprises, revenue corresponds to gross income from the sale of goods (the sum of markups or discounts as a percentage of the cost of goods sold). Gross income is calculated as the difference between the sale and purchase value goods sold. To determine profit, it excludes the distribution costs of trade, supply, and marketing organizations. At transport and communications enterprises, revenue reflects cash for the services provided at current rates. The prime cost is the indicator of operating costs of transport (communications) enterprises, taking into account the costs of forwarding and loading and unloading operations.

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 gains (losses) on other sales, which include the sale to the outside various kinds assets on the company's balance sheet.

The company independently disposes of its property. It has the right to write off, sell, liquidate, transfer to the authorized capital of other enterprises buildings, structures, equipment, vehicles and other fixed assets, material values ​​obtained in the process of demolition and dismantling of buildings, structures, to sell individual objects, inventory and other types of property. The financial result takes place only when the listed types of property are sold, as well as when other disposals of under-depreciated objects in some cases. When selling fixed assets, the financial result is determined as the difference between the sale price of fixed assets sold to third parties and their residual value, taking into account the costs incurred for the sale.

Other property of an enterprise is understood as raw materials, materials, fuel, spare parts, intangible assets (patents, licenses, trademarks, computer software products, etc.), currency values ​​(foreign currency, foreign currency securities, precious metals and natural precious stones, except for jewelry and household products and scrap of such products), securities. The difference between the sale price of these types of property of the enterprise and their book value (taking into account the costs incurred in connection with this) is the financial result that affects the amount of book profit.

Financial results from non-sales operations are profit (loss) on operations of a different nature that are not related to the main activity 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) minus expenses on non-sales operations.

The list of non-operating profits (losses) of the enterprise is heterogeneous and quite extensive. A significant share can be income from long-term and short-term financial investments and income from property lease (they are included in non-operating profits if property lease is not the main activity of the enterprise).

Financial investments mean such placement of the enterprise'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 an enterprise for investing in the authorized capital of other enterprises (partnerships, joint-stock companies, joint ventures, subsidiaries), acquiring shares and other securities, and lending funds for a period of more than a year. The forms of short-term financial investments include the acquisition of short-term treasury bills, bonds and other securities, the provision of loans for a period of less than a year. Cash or other property assets of the participants in a joint activity 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 authorized capital of another enterprise represent a part of its net profit, which goes to the founder in a predetermined amount or in the form of dividends on shares, the block of which is owned by the founder. Income from securities is interest on bonds, short-term treasury bills, dividends on shares. The enterprise has the right to receive income on securities of joint-stock companies if they are acquired no later than 30 days before the officially announced date of their payment. With regard to government securities, the right and procedure for obtaining income are determined by the terms of their issue and placement. For funds provided on loan, the enterprise receives income under the terms of the agreement between the lender and the loan borrower.

Non-operating profits (losses) also include the balance of received and paid fines, penalties, forfeits 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 (losses, losses).

These incomes include:

Profit of previous years, revealed in the reporting year (for example, amounts received from suppliers for recalculations for services and material assets received and spent last year; amounts received from buyers, customers for recalculations for products sold last year, etc.) ;
- income from revaluation of goods;
- receipt of amounts on account of 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 funds on the accounts of the enterprise.

Costs and losses include:

Losses on operations of previous years, identified in the reporting year, from the markdown of goods, write-off of bad receivables;
- shortages of material assets identified during the inventory;
- costs for canceled production orders and for production that did not produce products, excluding losses reimbursed by customers (the cost of material assets used is deducted);
- 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 received scrap metal, fuel, and other materials);
- uncompensated losses as a result of fires, accidents, other emergency events caused by extreme situations;
- the costs of maintaining mothballed production facilities and facilities, except for costs reimbursed from other sources;
- court costs and arbitration fees, etc.

When considering profit as the final financial result of economic activity, it should be borne in mind that not all profits received remain with the enterprise, as they are subject to taxation.

The taxable profit is reduced by the amount of profit from the sale of agricultural and hunting products produced, as well as from the sale of agricultural products of own production produced and processed at this enterprise.

The taxable profit in case of actually incurred costs and expenses at the expense of the profit remaining at the disposal of the enterprise is also reduced by the amounts directed:

A) enterprises of industries in the sphere of material production to finance capital investments for industrial purposes (including in the form of equity participation), as well as to repay bank loans received and used for these purposes, including interest on loans;
b) enterprises of all sectors of the national economy for financing housing construction(including in the form of equity participation), as well as for the repayment of bank loans received and used for these purposes, including interest on loans. This exemption is granted to the specified enterprises that develop their own production base and housing construction;

In order to stimulate scientific and technical progress, taxable profit is reduced by amounts directed to:

Scientific organizations that have passed state accreditation, directly for the conduct and development of research and development work in the manner and according to the list established by the Government of the Russian Federation;
enterprises for R&D, as well as to the Russian Fund for Technological Development, but not more than 10% of the amount of taxable profit.

The part remaining after paying taxes is the residual profit (or net profit), which is completely at the disposal of the enterprise. It is used to pay wages and financial incentive, for the growth of working capital, capital investments, social development through the formation of appropriate funds: the development of science and technology, social development, material incentives.

Thus, in the conditions of transition to the market and in its further formation, profit is the main motive for organizing the production and economic and commercial activities of the enterprise.

Receiving a profit

Making a profit is the main goal, by definition, of any commercial activity. In an economic sense, the profit that an entrepreneur receives is directly dependent on risk. The higher the entrepreneurial risk, the higher the profit.

Profits are influenced not only by financial factors (the cost of raw materials or production efficiency), but also by market factors. For example, an enterprise can make more profit if it has a monopoly in the market and can dictate its own (inflated) prices for products to customers.

Profit Analysis

A general profit analysis can be performed according to the financial statements - Profit and Loss Statement (for example, automatically using a special program). In particular, the change in profit is analyzed (analysis in dynamics), as well as profitability ratios. For profit analysis, two types of coefficients are used. In the first, profit is compared with another "turnover" indicator - revenue or cost (for example, return on sales). In the second, profit is calculated in relation to the value of assets or capital involved in its creation (for example, return on assets, return on equity).

For a deeper analysis of the factors that influenced the financial result, both accounting data (including cost data by items, elements) and external data (for example, a drop in demand, a worsening economic situation in the country) are used.

Profit taxation

Along with value added, which is subject to VAT, the main object of taxation for commercial organizations is profit. At the same time, income tax is a direct tax, it is paid by the enterprise from its own funds, while VAT is an indirect tax, it is paid at the expense of the buyer.

The current income tax rate in the Russian Federation is 20% (with an increased tax rate for certain types of activities). There are also special tax regimes(for example, a simplified taxation system), where profit (income minus certain expenses) is taxed at a lower rate.

Profit is the difference between revenue (income) and costs (expense). Profit is a key measure of the financial efficiency of entrepreneurial activity.

In the financial statements (Profit and Loss Statement), the following profit indicators are distinguished:

Gross profit (loss) - the difference between the sales proceeds without VAT and the cost of sales;
profit (loss) from sales - gross profit minus selling and administrative expenses;
profit (loss) before tax (profit (loss) from sales plus interest and other income and expenses, except for income tax);
net profit (loss) - the final financial result, taking into account all the income and expenses of the organization.

Profit Analysis

Profit analysis is divided into different areas, types and forms, depending on the following features:

According to the areas of research, there is an analysis of the formation of profit and an analysis of its use:

Analysis of profit formation is carried out in the context of the main areas of activity - operating, investment, financial. It is the main form of analysis to identify reserves to increase the amount and level of profit. One of its aspects is the analysis of profit according to accounting and taxable profit;
analysis of the distribution and use of profits is carried out in the main areas of its use. It is designed to identify the level of consumption of profit and its capitalization, as well as specific forms of its production consumption for investment purposes.

According to the organization of the conduct, internal and external analysis of profits are distinguished:

Internal analysis is carried out by managers or owners of the enterprise using the totality of available information. The results of such analysis may be a trade secret;
external analysis is carried out tax authorities, banks, insurance companies based on the materials published by the enterprise in the open press reporting.

According to the scale of activity, the following forms of profit analysis can be distinguished:

Profit analysis for the enterprise as a whole. In the process of this analysis, the formation, distribution and use of profits are studied without the allocation of individual structural divisions of the enterprise (used in financial analysis);
profit analysis by structural unit or responsibility center (used in management accounting);
profit analysis for individual products (is an additional type of analysis that can be used in both financial and management accounting).

According to the scope of the study, a complete and thematic analysis of profits is distinguished:

A complete analysis is carried out in order to study all aspects of its formation, distribution and use in a complex;
thematic analysis is limited to certain aspects of the formation or use of profits (the impact of the tax policy pursued by the enterprise on the formation of costs, income and profits;
the influence of the structure and on the level of profitability of the enterprise, etc.).

According to the period and depth of the conduct, the following types of profit analysis are distinguished:

Preliminary analysis of profit (express analysis of profit, predictive analysis) associated with the conditions for its formation, distribution or future use, with the conditions for the implementation of individual commercial transactions, financial or investment transactions, when drawing up a business plan, analysis of the final financial statements in order to determine the mass and rates of return, profitability of sales and assets of the enterprise;
operational analysis of profits, carried out in the process of carrying out production, investment and financial activities with the aim of promptly influencing the formation or use of profits;
subsequent (in-depth) analysis of profit, carried out based on the results of work for the reporting period for the most complete study of financial results in comparison with its preliminary and current analysis, identification of factors that influenced the change in profit in comparison with the business plan, indicators of the implemented investment project or the previous period, as well as for monitoring and subsequent adjustment of the indicators of the business plan being implemented by the enterprise;
a detailed analysis of profits, carried out in the context of studying each of the factors that affect the amount of profit in general for the enterprise, profit for certain types of products or specific sales.

The purpose of enterprise profit analysis

The purpose of profit analysis is to find out the reasons for the change in profit, determine the reserves for its growth and prepare management decisions to mobilize the identified reserves.

To achieve this goal, the following tasks are solved during the analysis:

1. assessment of the implementation of the plan (forecast) and the dynamics of financial results;
2. study of the composition and structure of profits;
3. identification and quantitative change in the influence of profit formation factors;
4. analysis and evaluation of the quality of profit;
5. study of directions, proportions and trends in the distribution of profits;
6. identification of profit growth reserves;
7. development of recommendations for the most efficient use of profits, taking into account the prospects for the development of the enterprise.

Profit Management Process

The profit management process includes the implementation of a number of functions, such as planning the final financial results, accounting for the formation, distribution and use of profits, assessment and analysis of the achieved level, and management decision making. Thus, the results of the analysis are used to make decisions in the field of profit management. In the course of the analysis, several decision-making options are developed, on the basis of which a decision is made that is optimal for the enterprise in this situation.

When analyzing profits for different calendar years, it is necessary to make calculations in comparable prices - in prices of the previous or reporting periods.

In the course of the analysis, a variety of techniques and methods of analysis are used to obtain a quantitative assessment of financial results. These include horizontal and vertical analysis, comparative analysis and analysis by factors, analysis of profitability ratios and risk analysis, integral analysis, etc.

Profit target

Any business starts with the aim of making a profit, because. this is essential to the survival and growth of the company. From the point of view of economic theory, the generation of cash flows (i.e., making a profit) should be considered as the main goal of any business unit.

The need for profit is determined by the need to cover production costs, as well as the expansion and development of the enterprise. Business survival in the absence of profit will simply be impossible.

Some economists believe that profit maximization should not be the overriding, dominant goal in a company's development strategy, because. this leads to over-exploitation not only of the labor force, but also of the consumers. Other theorists, on the contrary, argue that profit should be main goal firms, since it is a monetary reward for the entrepreneur for the risks taken and, accordingly, a motivating factor for further growth and development.

IN Lately Among the largest businessmen, there has been a tendency to adhere to the views that business should, first of all, be socially responsible. Improving the quality of life of people, society as a whole, environment, participation in solving acute social problems - this is the list of tasks facing socially responsible business.

Sir Richard Branson, one of the richest people in the UK, businessman and author of the bestselling book Losing My Virginity, believes that at the heart of any enterprise there should be a fundamental idea to benefit others, and the profit will take care of itself.

In the modern world, success is achieved by those companies that do not just offer the market a high-quality product or service, but demonstrate to potential consumers a sincere social responsibility.

However, profit is important to a business for a number of reasons:

1. Profit is necessary for the growth of the company. Profit acts as the main source of financing for the activities of the enterprise (purchase of raw materials, materials, equipment, payment of wages).
2. Profit is necessary for the survival of the company. In order to cover production and other expenses, the company must have a source of income. This becomes especially critical during economic downturns.
3. Profit is necessary to meet the individual and social needs of the entrepreneur.
4. Profit is the most important economic indicator of business success. The indicator of profitability of an enterprise acts as a litmus test for assessing the prospects, attractiveness and rationality of the functioning of a business unit. This valuation takes on particular importance when a company goes public for analysts. stock market, traders, investors.

Opponents of profit maximization cite the following facts as arguments:

1. It leads to the exploitation of workers and consumers. Companies in pursuit of increasing profits seek to reduce the expenditure side (employee salary) and increase revenue (aggressive advertising, aggressive methods of promoting and selling their products, attempts to manipulate the minds of consumers).
2. It leads to an increase in social inequality, with the rich getting richer and the poor getting poorer.
3. This leads to an increase in cases of corruption.
4. It lowers the moral spirit of society and increases the degree of its materialism.

Profit components

A good way to define marketing goals for advertising company- is to identify three ways to influence the advertising company on profits.

Components of profit:

In the general case, Profit = (Price - Costs) Sales volume.

As we can see, there are three potential ways that advertising communications and incentives can influence brand profitability:

Increase the price, provided that losses from reduced sales volumes can be avoided;
- reduce costs as much as possible;
- increase sales volumes.

Most often, companies tend to use only the third method, however, the other two sources of increasing profits are no less important. Of course, if the firm's goal is to maintain profits at a given level, and not to increase it, then it will be sufficient to maintain prices, costs and sales volumes. Such a goal is sufficient during a general economic downturn or if the brand faces strong competition. But we will assume that the main goal is to increase profits, so we will briefly consider how this can be achieved with the help of an advertising company.

Time horizons

Short term - when desired results need to get it as soon as possible.
- Medium-term (annual) - a typical period of planning an advertising company and drawing up an advertising budget.
- Long term- lasting from one year to some point in the foreseeable future (3,5,10,15 years).

These three planning horizons cover most of the situations a manager encounters when setting marketing goals for an advertising company.

Profit accounting

Account 99 "Profit and Loss" is intended to summarize information on the formation of the final financial result of the organization's activities in the reporting year. The debit of account 99 reflects losses (losses, expenses), and the credit - profits (income) of the organization. Comparison of debit and credit turnover for the reporting period shows the final financial result.

On account 99 during the reporting year are reflected:

Profit or loss from ordinary activities - in correspondence with a score of 90;
- balance of other income and expenses for the reporting month - in correspondence with account 91;
- the amount of the accrued conditional income tax expense, permanent liabilities and payments for recalculations of this tax from actual profit, as well as the amount of tax sanctions due - in correspondence with account 68 "Calculations for taxes and fees".

Accrued income tax payments and amounts of due tax sanctions are recorded in the debit of account 99 and the credit of account 68 "Calculations on taxes and fees". Income tax recalculation payments are also reflected in these accounts.

At the end of the reporting year, when compiling the annual financial statements, account 99 is closed. At the same time, by the final entry in December, the amount of net profit (loss) of the reporting year is written off from account 99 to the credit (debit) of account 84 "Retained earnings (uncovered loss)".

Thus, the financial result generated on account 99 is transferred to account 84 “Retained earnings (uncovered loss)”, which records the organization's own profit.

Analytical accounting on account 99 should provide the formation of the data necessary for compiling a profit and loss statement.

The profit remaining at the disposal of the organization after paying taxes can be used to pay dividends to the founders.

Retained earnings is the amount of net profit not distributed in the form of dividends (or otherwise) among the participants of the organization in accordance with founding documents, and is reflected in the credit of account 84 "Retained earnings (uncovered loss)".

The loss for the reporting period is shown in the debit of account 84. The credit balance of this account is transferred to the balance sheet as profit, the debit balance as an uncovered loss.

Uncovered losses of the reporting period can be covered from reserve funds, contributions from participants (if it is provided for by the constituent documents). If these funds are insufficient, a debit balance is formed on account 84, which is transferred to the next year.

The executive bodies of an organization of any legal form are required to submit to the owners a report on the results of work for each past financial year. The financial report is approved at the annual meetings of joint-stock companies and companies with limited liability which are held annually. The financial report includes a balance sheet, income statement, other forms of reporting, and an audit report. The participants of the meeting decide on the distribution of the profit received during the year or on the sources of covering losses, and determine the amount of dividends. The decisions made at the meeting are the basis for the accounting department to make the appropriate accruals and accounting entries.

In accordance with the Federal Law “On Joint Stock Companies”, a dividend can be paid quarterly or once every six months, once a year. The Board of Directors decides on the payment of an interim dividend and its amount. The amount of the annual dividend is declared by the general annual meeting based on the results of work for the year, taking into account the payment of interim dividends, it cannot be more than recommended by the board of directors (supervisory board) of the company and less than the paid interim dividends. The General Meeting of Shareholders has the right to decide on non-payment of dividends on shares of certain categories (types), as well as on the payment of partial dividends on preferred shares, the dividend amount for which is specified in the charter.

The owners of preferred shares receive a fixed income, since the amount of the dividend is indicated at the time of their issue in the prospectus. It may be provided for in the charter of the company in the form of a fixed sum of money or as a percentage of the nominal value of preferred shares. Dividends on these shares are accrued and paid in the first place and regardless of the amount of profit received. If the received profit is not enough to pay dividends on preferred shares, then a specially created reserve and other sources are used for these purposes.

The procedure for determining the amount of dividends on ordinary shares on a per share basis provides for a preliminary exclusion from the total amount of profit allocated to the payment of dividends on preferred shares, and dividing the result by the number of fully paid ordinary shares. At the same time, the denominator does not include own shares repurchased from shareholders and on the balance sheet of the joint-stock company.

A joint stock company cannot pay dividends in a number of cases, including:

Until full payment of the entire authorized capital of the company;
- until the redemption of all shares that must be redeemed in accordance with Art. 76 of the said Law;
- if, on the day such a decision is made, the company meets the signs of insolvency (bankruptcy) in accordance with the legal acts of the Russian Federation on the insolvency (bankruptcy) of enterprises or if the indicated signs appear in the company as a result of the payment of dividends;
- if, on the day such a decision is made, the value of the company's net assets is less than its authorized capital and reserve fund and the excess of the liquidation value of the placed preferred shares over the nominal value determined by the charter, or becomes less than their amount as a result of the payment of dividends;

For accounting, not only the size of dividends and the form of payment are important, but the date of payment is no less important. The date of payment of annual dividends is determined by the charter of the company or the decision of the general meeting of shareholders on the payment of annual dividends. The date of payment of interim dividends is determined by the decision of the board of directors of the company on the payment of interim dividends, but cannot be set earlier than 30 days from the date of such a decision.

For each payment of dividends, the board of directors of the company draws up a list of persons entitled to receive dividends. The list of persons entitled to receive interim dividends must include shareholders and nominee shareholders included in the register of shareholders of the company no later than 10 days before the date of the decision on the payment of dividends by the board of directors of the company, and the list of persons entitled to receipt of annual dividends - shareholders and nominal holders of shares entered in the register of shareholders of the company on the date of compiling the list of persons entitled to participate in the annual general meeting of shareholders. Thus, accrual of dividends in a joint-stock company occurs on the basis of a decision of the meeting of shareholders, a decision of the board of directors according to the list submitted by it.

The dividend is declared in full, including the amount of tax. At the end of the year, the final dividend is accepted as the sum of interim dividends.

A limited liability company (LLC) has the right to make a decision on the distribution of net profit between the participants of the company on a quarterly basis, once every six months or once a year. The decision to determine the part of the company's profit to be distributed is taken by the general meeting of participants.

The part of the LLC's profit intended for distribution among its participants is distributed in proportion to their shares in the authorized capital.

The charter, adopted by all participants of the company unanimously, may establish a different procedure for the distribution of profits. It should be noted that the change and exclusion of the provisions of the charter of an LLC that establish a different procedure are carried out by a decision of the general meeting of participants, adopted unanimously.

Just like in a JSC, in an LLC there are restrictions on the distribution of profits between participants. These restrictions are similar to those adopted for AO.

To account for settlements with shareholders or members of companies on income, subaccount 2 “Settlements for the payment of income” of account 75 “Settlements with founders” is used. The sub-account is passive, the credit balance shows the amount of the company's debt to shareholders and participants; the credit reflects the accrual of debt on dividends, the debit - its repayment.

In case of insufficient profit, funds from other sources can be attracted, in particular additional capital: an entry on the debit of account 83 and the credit of account 75-2.

Announcement of dividends in the amount at which there is not enough profit and other sources to pay them, forces the joint-stock company to use the funds of the reserve capital. Otherwise, it must declare itself bankrupt: an entry on the debit of account 82 and the credit of account 75-2. Such an option for repayment of obligations on dividends should be provided for by the charter of the company.

Dividends receivable under a share agreement when an enterprise has financial investments in securities of other organizations, interest-bearing bonds of state and local loans, etc., are accounted for under the debit of account 76 and the credit of account 91. Similar amounts receivable from subsidiaries or dependent companies are recorded on account 76.

The organization has the right to decide on the direction of the dividends due to it for the development of the production base of these companies, the increase in their authorized capital: an entry in the debit of account 58 and the credit of account 76.

If the shareholders are employees of the organization, then dividends are accrued by an accounting entry on the debit of account 75-2 and the credit of account 70. The payment of dividends to their employees is reflected in the debit of account 70 and the credit of account 50.

Dividends to third-party investors are paid in a non-cash way, which is reflected in the debit of account 75-2 and the credit of account 51 or 52. The resulting exchange difference, if dividends are paid in foreign currency, is written off to the financial results of the investor.

Profit figures

The main indicators of profit are:

Total profit (loss) of the reporting period - balance sheet profit (loss);
- profit (loss) from the sale of products (works, services);
- profit from financial activities;
- profit (loss) from other non-operating transactions;
- taxable income;
- net profit.

Balance sheet profit (loss) is the sum of profit (loss) from the sale of products, financial activities and income from other non-sales operations, reduced by the amount of expenses on these operations.

Profit (loss) from the sale of products (works, services) is defined as the difference between the proceeds from the sale of products in current prices, excluding VAT, special taxes and excises, and the costs of its production and sale.

Profit (loss) from financial activities and other non-sales transactions is determined as the difference between the total amount received and paid:

Fines, penalties and forfeits and other economic sanctions;
- interest received on the amounts of funds on the accounts of the enterprise;
- exchange rate differences on currency accounts and operations in foreign currency;
- profits and losses of previous years identified in the reporting year;
- losses from natural disasters;
- losses from writing off debts and receivables;
- receipts of debts previously written off as uncollectible;
- other income, losses and expenses attributed in accordance with the current legislation to the profit and loss account. At the same time, the amounts contributed to the budget in the form of sanctions in accordance with the legislation of the Russian Federation are not included in the expenses from non-sales operations, but are attributed to the decrease in net profit, i.e. profit remaining at the disposal of the enterprise after paying income tax.

Taxable income is determined by a special calculation. It is equal to the balance sheet profit, reduced by the amount:

Contributions to the reserve and other similar funds, the creation of which is provided for by law (until the size of these funds reaches no more than 25% of the statutory fund, but not more than 50% of profit subject to taxation);
- rent payments to the budget;
- income from securities and equity participation in the activities of other enterprises;
- income from casinos, video salons, etc.;
- profits from insurance activities;
- profits from individual banking operations and transactions;
- exchange rate difference formed as a result of changes in the exchange rate of the ruble against foreign currencies quoted by the Central Bank of the Russian Federation;
- profits from the production and sale of industrial agricultural and hunting products.

Net profit of the enterprise, i.e. the profit remaining at his disposal is determined as the difference between the balance sheet profit and the sum of profit taxes, rent payments, export and import taxes.

Net profit is directed to industrial development, social development, material incentives for employees, the creation of a reserve fund, the payment to the budget of economic sanctions related to the violation of the current legislation by the enterprise, for charitable and other purposes.

An integral feature of a market economy is the emergence of consolidated profits. Consolidated profit is the profit consolidated according to the financial statements on the activities and financial results of parent and subsidiaries. Consolidated financial statements are a combination of the statements of two or more business entities that are in certain legal and financial and economic relationships. The need for consolidation is determined by economic feasibility. It is beneficial for entrepreneurs to create several smaller enterprises, legally independent, but economically interconnected, instead of one large company. in this case, savings on tax payments can be obtained. In addition, due to the fragmentation and limitation of legal liability for obligations, the degree of risk in doing business is reduced, greater mobility is achieved in the development of new forms of capital investment and sales markets.

Profit from the sale of products (goods, works, services) is the difference between the proceeds from the sale of products without VAT, special tax, excise taxes, export tariffs, and production and sales costs included in the cost of production.

The proceeds from the sale of products is determined either as it is paid or as the goods (products, works, services) are shipped and the payment documents are presented to the buyer. The method for determining the proceeds from the sale of products is established by the enterprise for a long time based on the conditions of management and the conclusion of contracts. In the sectors of the sphere of commodity circulation (trade, public catering), instead of the category "revenue from the sale of products", the category "turnover" is used. The essence of trade is economic relations associated with the exchange of cash income for goods in the order of sale. In foreign practice, instead of the term "revenue", the term "gross income" is often used. However, this is a very broad interpretation of the term. Gross income as an economic category expresses the newly created value, or the net output of an economic entity. In the practice of planning and accounting in trade, gross income is understood as the sum of trade allowances (discounts); in public catering - the sum of trade allowances (discounts) and margins.

The cost of production is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process, as well as other costs for its production and sale.

The costs included in the cost of economic content are grouped according to the following elements:

Material costs (minus the cost of returnable waste);
- labor costs;
- deductions for social needs;
- depreciation of fixed assets;
- other expenses.

Business entities, incl. those who have received a loss and have an excess of the actual expenses for the remuneration of workers employed in the main activity, as part of the cost of products (works, services) in comparison with the normalized value, pay tax to the budget on the amount of excess of these expenses.

Types of profit

There are the following types of profit: gross profit is the sum of profits (losses) of the enterprise both from the sale of products and income (losses) not related to its production and sale. Under the sale of products is understood not only the sale of manufactured goods that have a natural-material form, but also the performance of work, the provision of services.

Profit from the sale of products (works, services) - this is the financial result obtained from the main activity of the enterprise, is determined by deducting from the total proceeds from the sale of products in current prices (excluding VAT and excises) the costs of production and sales of products included in the cost of production .

Profit from the performance of work and the provision of services is calculated similarly to profit from the sale of products, separately for all types of activities, i.e. profit (loss) of auxiliary agriculture, auto farms, logging and other farms that are on the balance sheet of the enterprise.

Profit (or losses) from the sale of fixed assets and other property is a financial result that is not related to the main activities of the enterprise. It reflects profits (losses) on other sales, which include the sale to the side of various types of property listed on the balance sheet of the enterprise (buildings, structures, equipment, vehicles and other fixed assets, material assets received in the process of demolition and dismantling of buildings, structures , inventory and other types of property). The financial result from the sale of fixed assets is calculated as the difference between the proceeds from the sale of this property (net of VAT, excises) and the residual value on the balance sheet, adjusted by a coefficient corresponding to the inflation index.

Other property of the enterprise is understood as raw materials, materials, fuel, spare parts, intangible assets (patents, licenses, software products for computers), currency values ​​(foreign currency, precious metals, etc.), securities. The difference between the selling price of these types of property and their book value (including costs incurred in connection with this) is the financial result that affects the amount of gross profit.

Profit (or loss) from non-operating transactions, i.e. operations that are not related to the main activity of the enterprise and not related to the sale of products, fixed assets, other property of the enterprise, the performance of work and the provision of services. The financial result is defined as Income (or loss) minus expenses on non-operating operations.

The list of non-operating profits (or losses) of the enterprise is heterogeneous and quite extensive. A significant share can be income from long-term and short-term financial investments and income from property rental. Long-term financial investments are understood as the costs of the enterprise for the investment of funds in authorized capital other enterprises, the acquisition of shares and other securities, the provision of loans for a period of more than a year. The forms of short-term financial investments include the acquisition of short-term treasury bonds and other securities, the provision of loans for a period of less than a year.

Income from the rental of property is formed from the rent received, which the tenant pays to the landlord.

Non-operating profits (losses) also include received and paid fines, penalties, forfeits 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 (losses, losses).

Taxable profit (taxable) part of the gross profit of the enterprise, which serves as the basis for calculating the tax payable to the budget.

Taxable profit is reduced by the amount of profit from the sale of agricultural and hunting products produced, as well as from the sale of agricultural products of own production produced and processed at the given enterprise.

The taxable profit, in case of actually incurred costs and expenses at the expense of the profit remaining at the disposal of the enterprise, is also reduced by the amounts directed:

A) enterprises to finance capital investments for industrial purposes, as well as to repay bank loans received and used for these purposes;
b) to finance housing construction (including in the form of equity participation);
c) the costs of enterprises for the maintenance of objects and institutions of health care, public education, culture and sports, children's preschool institutions, children's holiday camps, housing stock.

After all these adjustments to gross profit, there remains taxable profit, on which income tax is paid.

The result of multiplying taxable income by the income tax rate is the amount of tax. Currently, according to the Tax Code of the Russian Federation, the income tax rate is 20%.

Net profit is a source of funds for expanded production, meeting the social and domestic needs of workers, their material incentives, and the formation of special funds and reserves. It is distributed at the enterprise independently.

Profit distribution is understood as the direction of profit to the budget and according to the items of use in the enterprise.

As a rule, one part of the profit forms an accumulation fund, the other a consumption fund.

Part of the net profit (35%) is credited to the reserve (for unforeseen payments, for example, in case of a natural disaster).

The funds of the accumulation fund are spent:

For the acquisition and construction of fixed assets for production and non-production purposes;
payment of non-tariff sanctions;
partial training and retraining of personnel, etc.

The funds of the consumption fund are spent:

On rendering financial assistance;
pension supplements;
bonuses not related to production results;
payment of dividends;
payment of social needs, etc.

However, not all net profit is used by the enterprise at its own discretion. At the expense of net profit, certain types of fees and taxes are paid (for example, a tax on property of enterprises, a fee for the right to trade, etc.); fines in case of non-compliance with the requirements for environmental protection from pollution, sanitary norms and rules and other payments.

At some enterprises, in joint-stock companies, net profit is distributed in the following areas:

accumulation fund;
- consumption fund;
- reserve fund;
- social sphere fund;
- fund of foreign exchange deductions;
- profit to be distributed among the founders (shareholders), etc.

Retained earnings are added to the authorized capital of the enterprise.

In a market economy, the importance of profit is enormous. The desire to obtain it directs commodity producers to increase the volume of production, reduce production costs. Losses also play their part. They highlight mistakes and miscalculations in the direction of funds, organization of production and marketing of products.

Forms of profit

There are 2 forms of profit, each of which must be taken into account by an entrepreneur when supporting a business. I would like to draw attention to the fact that the amount of profit, depending on its form, may not only differ in the amount of money, but also in polarity.

Forms of profit

The first form of profit is accounting profit, which takes into account all expenses and cash receipts. As an income, accounting profit involves the contribution of additional funds by the entrepreneur, the use of real estate that was owned, and much more.

In this case, everything is taken into account, starting from payments for electricity spent in production, ending with the wages of employees.

Economic profit takes into account the personal contributions of the entrepreneur not as income, but as an expense. Also, the used real estate, labor contributions of the entrepreneur and much more will be taken into account as an expense. Given this information, you can already guess why the amount of profit varies depending on the form.

To give an accurate assessment of the development of the company, it is necessary to take into account the indicators of economic profit. If its indicator is positive, then this means that the business is functioning correctly and has the potential for development.

However, if you observe positive values ​​of economic profit, this is not yet an indicator that you should not worry about the development of the company. Your business's success rates can change at any time, and you must keep your business running at all times.

Profit distribution

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. 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 finished products which becomes a commodity when it is sold to the consumer.

Firstly, it characterizes the economic effect obtained as a result of the enterprise's activities. But it is impossible to evaluate all aspects of the enterprise's activity with the help of profit. Such a universal indicator cannot exist. That is why when analyzing the production, economic and financial activities of an enterprise, a system of indicators is used.

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 independent of the efforts of the enterprise.

Secondly, profit has a stimulating function. Its content is 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 obligatory 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 formation of budgets of different levels. It enters the budgets in the form of taxes and, along with other revenues, is used to finance the satisfaction of joint social needs, to ensure that the state performs its functions, state investment, production, scientific, technical and social programs.

In a market economy, the importance of profit is enormous. The desire to obtain it directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. For the entrepreneur, profit is a signal that indicates where the greatest increase in value can be achieved, creates an incentive to invest in these areas. Losses also play their part. They highlight mistakes and miscalculations in the direction of funds, organization of production and marketing of products.

The object of profit distribution is the balance sheet profit of the enterprise. Its distribution is understood as the direction of profit to the budget and according to the items of use in the enterprise. Legislatively, the distribution of profits is regulated in that part of it that goes to the budgets of different levels in the form of taxes and other obligatory payments. Determining 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 relevant 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 value of the profit of the enterprise, 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, which ensures its further development, and only in the rest to consumption.

At the enterprise, the net profit is subject to distribution, that is, the profit remaining at the disposal of the enterprise after paying taxes and other obligatory payments. Sanctions paid to the budget and some off-budget funds are collected from it.

The distribution of net profit is one of the areas of intra-company planning, the importance of which is growing in a market economy. The most important thing in the distribution of profits is a combination of budgetary, self-supporting and personal interests of workers. Based on this, economic practice and economic science are constantly looking for optimal criteria for the distribution of profits of a commercial organization, while taking into account the specific economic situation.

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 divisions 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 profits, or form special-purpose funds: accumulation funds (production development fund or production and scientific and technological development fund, social development fund) and consumption funds (material incentive fund). Profit-financed cost estimate includes production development costs, social needs labor collective, for material incentives for employees and charitable purposes.

The costs associated with the development of production include the costs of:

For 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 expenses on repayment of long-term bank loans and interest on them. There are also planned costs for environmental protection measures.

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:

For the operation of social facilities that are on the balance sheet of the enterprise;
- financing the construction of non-production facilities;
- organization and development of subsidiary farming;
- carrying out health-improving, cultural events.

The costs of material incentives include one-time incentives for the performance of particularly 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, lump-sum benefits for labor veterans retiring, pension supplements, workers' compensation an increase in the cost of food in canteens, buffets of the enterprise due to price increases.

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 process of accumulation. The second characterizes the share of profit used for consumption. At the same time, it is not necessary to use all the profits allocated for accumulation in full. The rest 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 expenses.

Conclusion: the distribution and use of profits is an important economic process that provides both coverage of the needs of entrepreneurs and the formation of Russia's income.

The mechanism for distributing profits must be constructed in such a way as to contribute in every possible way to increasing the efficiency of production and to stimulate the development of new forms of management. Depending on the objective conditions of social production at various stages of the development of the Russian economy, the system of profit distribution changed and improved.

Profit Percentage

In order to earn more, it is necessary to systematize the process of obtaining this same money. It is important to be clear about the numbers that you get as a result of organizing your business. Calculating the percentage of profit is not so difficult. You just need to carefully read the instructions below and choose the method that suits you best.

Divide the sales margin as a percentage by the sum of the number one hundred with a value that is equal to the divisible. Next, multiply the total turnover by the resulting number divided by one hundred. This method appropriate if the same percentage is applied to the entire range. It is better to repeat the calculations several times to eliminate possible errors.

Add together the products of different turnovers and the estimated trade margin for groups of goods. Then divide the result by one hundred. Such a formula will be successfully applied if different groups of goods are assigned a different percentage for the surcharge.

Multiply the average percentage of gross income by turnover, and then divide by one hundred. This is the simplest margin, which is applied in the case of accounting for goods at sales prices. This method also involves the mandatory calculation of the average percentage of gross income. Add up the trade markup on the balance of products at the beginning of the reporting period and the markup on goods received during this time. From the result, subtract the goods that have retired or become unusable. Next, divide this number by the amount of turnover and balance at the end of the reporting period, multiplied by one hundred. Substitute the result in the first formula and calculate according to the sample. The percentage of gross profit is ready.

Add the trade markup on the balance of goods at the beginning of the reporting period with the trade markup received for the reporting period. Next, subtract the surcharge for retired goods from the resulting number. From the result of the two previous steps, you now need to subtract the markup on the balance at the end of the working period. This method is suitable for calculating the gross income for the assortment of the balance. But for the implementation it is necessary to keep a strict record of the allowance for each product. Such accounting must be carried out at least once a month.

Profit on balance

The reflection of profit in the balance sheet is the final stage of summing up the financial result of the enterprise. In this case, all amounts of expenses and income of the company recorded during the reporting period are taken into account. The result is reflected in account 99 "Profit and losses".

Determine the financial result from the main activity of the enterprise. For this, account 90.5 “Profit from sales” is used. In this case, the amount of proceeds is reflected in the credit of subaccount 90.1 “Revenue”, and the cost and sales costs are reflected in the debit of subaccounts 90.2, 90.3 and 90.4.

Calculate the revenue and costs of the business that do not fall under the definition of the main activity. Reflect these indicators on the sub-accounts of account 91 “Other income and expenses”.

Carry out a balance sheet reform. Close all sub-accounts at the end of the year with internal entries. To do this, the debit turnover of sub-account 90.1 and the credit turnover of sub-accounts 90.2, 90.3, 90.4 and 90.5 must be written off to account 90.9. Open other income in debit, and other expenses in credit and write off to account 91.9 “Balance”.

Reflect in the balance sheet the profit of the enterprise by opening the debit of sub-account 90.9 and sub-account 91.9 in correspondence with the credits of account 99 "Profit and loss". If the financial result showed a negative value, then it must be reflected in the debit of account 99.

Reflect the amount of net profit of account 99 in correspondence with the credit of account 84 "Retained earnings". After that, make a decision on its distribution, which must be confirmed by the order of the head or the minutes of the meeting of the founders. If it was decided to direct the profit to the payment of dividends, then it is reflected in the debit of account 84 in correspondence with accounts 70 “Settlements with personnel” or 75.2 “Calculations for the payment of income”. To create a reserve capital, a credit is opened on account 82 “Reserve capital” and a debit is opened on account 84.

Next, you need to determine the purpose of the reserve and use it to cover future losses, buy back your own shares or redeem bonds. If it is necessary to bring the authorized capital to the value of net assets, then the profit is transferred to the debit of account 80.

Profit increase

Each enterprise should provide for planned activities to increase profits.

IN general plan these activities may be of the following nature:

Increase in output;
- improvement of product quality;
- sale or lease of surplus equipment and other property;
- reduction of production costs due to more rational use of material resources, production capacities and areas, labor force and working time;
- diversification of production;
- expansion of the sales market, etc.;
- rational use of economic resources;
- reduction of production costs;
- increase in labor productivity;
- liquidation of non-production expenses and losses;
- raising the technical level of production.

In a market economy, the importance of profit is enormous. The desire to obtain it directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. However, economic instability, the monopoly position of commodity producers distort the formation of profit as a net income, lead to the desire to receive income, mainly as a result of price increases.

Despite the fact that profit is the most important economic indicator of the enterprise, it does not characterize the efficiency of its work. To determine the effectiveness of the enterprise, it is necessary to compare the results (in this case, profit) with the costs or resources that provided these results.

Doing business is a diverse process that includes elements of management, a seller, a logistician and, of course, an economist-accountant. The last aspect is ignored by most small businessmen and for good reason. At its core, economic planning, ultimately accounting, allows you not only to state the facts of profitability or unprofitability, but to suggest how to earn more money!

To be clear, let's look at economics in terms of real-life applications.

Why is it important to calculate profit correctly.

There are several main economic indicators that really evaluate the activities of a business: profit, profitability, cost, revenue, income. Speaking of the term profit, ordinary citizens mean "how much they earned", such a definition is not entirely correct. Try asking an economist or an accountant to calculate your profit?

Get a lot of additional questions, or they can send you to hell. In practice, such a term as profit (in fact, revenue, income) are grouping definitions, denoting a whole “bouquet” of different economic indicators that are formed at different stages of the business process.

The key definition is at different stages, processes.

What does it mean?

Profit can be calculated as the total result of entrepreneurial activity, it will be net profit. In this context, we get how much money was earned in total (revenue minus the total cost), that is, all invested funds returned.

The simplest formula for determining net profit business looks like this:

This approach does not give anything, you can not count, but just live on. Another thing is to calculate profit in accordance with the generally accepted mechanism, which involves determining the level of profitability, profitability of each of the stages, elements of the business.

Why is it important?

This option makes it possible to determine the "bottlenecks" of business processes, makes it possible to work out some measures to increase the overall profitability through optimization. No matter how much money you earn, it may well be that using everything you can also earn two or three times more. The question remains, how to do it right?

What is profit, types

Having determined that profit (by the way, several terms are used in English - profit, gain, return) is a positive amount of money calculated as the difference between the total business expenses (including cost) and the total business income, revenue (sales price).

There are dozens of different interpretations, for example - Profit is the excess of all the company's income over its expenses, or it is the final financial result of the organization's activities for a certain period of time.

There are several dozens of various indicators characterizing the profitability of an enterprise, for a small entrepreneur such a variety is unnecessary, it is realistic to use a few basic ones for evaluation.

The main types of profit for small businesses,

• - gross
• - from sales
• - margin
• - balance sheet
• - clean

Economic theory distinguishes the following types of profit:

1. economic;
2. accounting;
3. from implementation;
4. margin;
5. gross;
6. balance;
7. clean;
8. profit (loss) before taxation;
9. profit (loss) from ordinary activities;
10. operating room
11. nominal;
12. real;
13. minimum;
14. normal (satisfactory);
15. maximum;
16. target;
17. not received;
18. cash flow;
19. entrepreneurial;
20. admissible;
21. unallocated (cumulative);
22. taxable, not taxable;
23. consolidated;
24. remaining at the disposal of the enterprise.

Each of the above indicators allows you to evaluate the profitability or unprofitability of individual business processes, identifying those very “bottlenecks” and allowing you to earn more. How is each indicator calculated?

Gross profit

The general characteristic of the business is carried out on the basis of gross profitability, total revenue (price of goods per quantity) (Pval), that is, an indicator showing whether the business structure is functioning effectively at all.

Gross profit is the difference between all revenue received and the actual cost of goods sold or services rendered.

Among the main factors influencing the gross profitability are:

1. Internal business factors (depending on the entrepreneur, manager)

• - the speed of turnover of goods (how long financial resources are frozen in the balance);
• - the cost of products, services;
• - marketing promotion;
• - the amount of revenue (more details here);
• - quality of service (retention of regular customers);
• - unit price of production;

2. External factors for business (not dependent on the entrepreneur)

• - tax, non-tax regulation of business processes by the state (licensing, tax increases, quotas, other equivalents of restrictions);
• - increase or decrease in the purchasing power of the population;
• - changing trends, fashion.
• - compensation, benefits to other manufacturers, entrepreneurs by the state;
• - political changes.
• - increased competition, changes in the price of raw materials.

After the gross profit of the business is calculated, we proceed to the calculation of the profit from sales, but the calculation of the selling profit is an interesting topic, we will put it in the framework of a separate article, you can read it here.

Now a little video about the difference between gross profit and gross income

PROFIT and Gross income what is the difference?

Gross Revenue, Gross Revenue and Profit, what do they have in common?

Upload date: 2013-01-13

Marginal profit

Of interest to small businesses are marginal profit calculations, defined as the difference between revenue (the price of a product per quantity) and variable costs. In the article on cost, they said that costs are fixed and variable. Variables include the part that is directly involved in the main production process. Example:

Net profit

The final stage is the calculation of net profit from doing business, as you might guess, this is all income minus all expenses.

Let's look at several formulas for calculating profit in different interpretations

conclusions

Such long (perhaps) tedious profit calculations at different stages of a business’s activity make it possible to:

• finding "bottlenecks" for attracting borrowed funds and increasing profits, determining an adequate price. For example, an increase in the turnover of goods due to the expansion of the range, assortment, improvement of logistics;
• determine the most priority areas businesses where profitability is highest in the price of goods;
• search for effective ways to use capital investments to increase the profitability of the entire production;
• setting threshold values ​​for the minimum profit received, at each stage;
• refusal of individual cycles, goods, services or their transfer to outsourcing, it is not for nothing that these services entered the top most promising for 2015-2016 for small businesses.

In international finance, several other types of this indicator are used - EBIT (earnings before taxes and interest) and EBITDA (profit before depreciation, taxes and interest). Why?

Everyone perfectly understands the desire of entrepreneurs to avoid paying income tax, and as a result, to overestimate a number of indicators. This is usually done through interest on loans (lending by friendly structures), depreciation, and so on. Therefore, for a more or less real assessment of the effectiveness of such a business, EBIT, EBITDA are used, that is, it is cleared only of real expenses.

Profit margin Break-even point Operating leverage

Net profit is that important indicator that proves the success and respectability of the company, profit affects the future of the company, its development and competitiveness, the net profit formula reflects solvency and financial reliability, which is primarily evaluated by investors.

Net profit is understood as that part of the income received by the company that remains after deducting all costs (for purchases, wages, rent, taxes, credit deductions and others necessary for the sale of goods).

This indicator of financial statements is very important for all companies, regardless of what type of activity they are engaged in. Net profit allows you to calculate how much it is possible to increase the turnover, to what extent is it possible to increase production and calculate the amount of investments in working capital in the output of products or analyze the effectiveness of trading activities based on net proceeds.

What formula is used to calculate net income

In essence, the accounting formula used to calculate the net profit of a product or to determine the net profit from sales performed has the same economic sense, while often reflected using different source data. Therefore, it is possible to calculate the net profit indicator (NP) in several ways:

Initial data for use in the formula for calculating net profit and their features

To calculate the net profit from perfect sales or production profit according to any of the formula options, you will need such an indicator as revenue. It represents the total amount of money received by the company from the sale of goods for a certain period of time. For calculations, the total (or gross) revenue is used, which includes three areas. These include:

• proceeds from the sale (product, goods, services);
• from investments (for example, from the sale of securities);
• from the financial activities of the company.

The next indicator that occurs in the formula, and plays an important role in obtaining net profit either from sales or from production, is taxes, i.e. the money that the profit-making enterprise must give to the state fund.

Today, there are different taxation systems (general, simplified, with a single tax on imputed income, the purchase of a patent), each of which has its own characteristics and norms (interest rates, VAT, and so on). The type of taxes and the amount of deductions for them is a mandatory accounting component of accounting, which must be considered to determine the profit and profitability of the enterprise.

You will also need to determine the gross profit. It is considered as the difference between the amount of revenue (excluding VAT, excise duties and other mandatory deductions) and the cost of goods sold, products. The cost of production includes all costs in cash that were invested in its production (materials, transportation costs). Cost of sales includes funds spent on the purchase of goods, its delivery.

Profit before tax is the difference between gross profit and expenses non-production purpose. These include administrative, managerial, all kinds of marketing costs.

The amount of penalties, fines, penalties for failure to comply with the terms of the contract, compensation for damages caused by the enterprise - all this is also subject to accounting when profit before tax is calculated.

Among the initial data for the formula, you can see the indicator "operating profit". This concept includes those costs that were received from the sale of a franchise, the temporary transfer of intellectual property rights (patents for inventions, industrial designs), from the issuance of loans or at the expense of credit funds.

The amount of net profit from completed sales is influenced by several factors, these are: revenue, turnover, selling price (of products or goods), volume of sales performed, i.e. everything that makes up the cost of sales and related expenses.

Trade turnover is one of the most important indicators of the activity of a trade organization. It shows the volume of sales in monetary terms for the period under consideration. Analysis of the volume of trade turnover allows you to determine the prospects and dynamics of development or timely change the structure of the sale of goods.

When determining the net profit from completed sales, in addition to turnover and other indicators (such as cost of sales), so-called "extraordinary" income and expenses should be considered. These include receipts or costs associated with the onset of emergency situations (fire, flood), for which it is provided insurance compensation the cost of material values ​​unsuitable for further turnover.

When calculating the net profit from completed sales, two more points should be taken into account:

• compliance compliance. Revenue refers to the time period when the sale was made, and expenses - when they were spent in order to generate income;
• business continuity.

The procedure for calculating net profit according to the formula and analysis of the results using an example

First of all, the calculation of profit indicators begins with determining the amount of gross income. As already noted, it represents the amount of total revenue received in a certain period of time from the sale of products or for services rendered. But, in the calculation it will be necessary to consider the net gross income, and for this it is necessary to find the sum of all income received and subtract the amount of money that was returned to customers in the form of bonuses or compensation for marriage.

Next, add up all the costs of implementation (sales and management). This includes marketing, transportation costs, staff salaries, insurance premiums, rent trading floor, public Utilities, equipment depreciation. Consider cost of sales.

Now we can consider a small example.

Last month, a firm for tailoring home clothes sold branded raincoats worth 10 million rubles through a retail outlet. and received 1 million rubles for the sold franchises, while holding a festive promotion for customers in order to increase sales by making gifts to regular customers in the form of bonuses, in the total amount of 500 thousand rubles. It is known that the cost of manufactured goods for the month amounted to 4 million rubles. The desire of the manager is to calculate the net profit in order to increase the volume of trade.

As a formula to determine net income, you can use the following:

PE \u003d revenue - taxes - expenses (administrative, commercial and others) - cost of production.

In this case:

Total revenue = 10 million rubles. + 1 million rubles - 500 thousand rubles. = 10.5 million rubles

Suppose all costs (including taxes) of the company for the last month amounted to 4.5 million rubles.

All data is substituted into the formula:

PE \u003d 10.5 million - 4.5 million - 4 million \u003d 2 million rubles.

In this case, the company received a profit that can be used to increase turnover. In addition, it is worth spending the profit on modernization, opening a second outlet to increase sales, new marketing moves (to increase the profit received from sales) or increasing staff salaries.

You can immediately determine that for investors, such an enterprise will be quite interesting, because. its net profit exceeds 14% (this minimum is considered to be indicative, as economists argue, exceeding this threshold makes the enterprise profitable).