How do profit and income of an enterprise differ from revenue? The ratio of possible profits and losses.

Risk-Reward Ratio Traders should establish a risk-reward ratio for each trade they make. In other words, they must have an idea of ​​how much they are willing to lose and how much they want to earn. Overall, the ratio

Determining the possible loan amount Selling goods, works, and services on credit, on the one hand, allows you to increase sales volume, but, on the other hand, increases both the volume of accounts receivable and the risk of non-payment. Since the company produces significant

Appendix 4 Statement of analytical accounting of profit distribution (coverage

Chapter 2 Set Higher Standards and Conduct Regular Training How to Reprogram Your Company to Run Like a Perfectly Oiled Machine According to the Harvard Business Review, only 10% of the population has an aptitude for learning. There are people,

The company's owners can use net profit to pay dividends, pay bonuses to employees, increase the authorized capital, or other purposes. In this article we will look at how to record transactions related to the distribution of profits and pay taxes.

The right to distribute profits belongs to the owners of the company (subclause 3, clause 3, article 91, subclause 4, clause 1, article 103 of the Civil Code of the Russian Federation). To do this, they must hold a general meeting. In a joint-stock company, it is carried out no earlier than two months and no later than six months after the end of the financial year (clause 1, article 47 of the Federal Law of December 26, 1995 No. 208-FZ “On Joint-Stock Companies”, hereinafter referred to as Law No. 208 -FZ). In limited liability companies, the period for holding annual meetings is shorter - from March 1 to April 30 (Article 34 of the Federal Law of 02/08/98 No. 14-FZ “On Limited Liability Companies”, hereinafter referred to as Law No. 14-FZ).

The decision must be documented in the minutes of the general meeting of shareholders (participants). It is clear that in companies created by a single founder, minutes of general meetings are not drawn up (Article 39 of Law No. 14-FZ, paragraph 3 of Article 47 of Law No. 208-FZ). The sole founder determines the direction of spending net profit by his written decision.

What can you spend your net profit on?

Retained (net) profit can be used:

• for the payment of dividends;
• increase the authorized capital;
• formation of reserve capital;
• repayment of losses from previous years;
• various employee benefits;
• financing of capital investments;
• other goals.

Let's take a closer look at the procedure for distributing profits for some of these purposes.

We pay dividends

Payment of dividends is the main direction of profit distribution.

When dividends cannot be paid

Before deciding to pay dividends, you need to check whether the company has the right to do so.

Let us remind you that you cannot distribute profits between owners if:

• the authorized capital is not fully paid. In other words, if there is a debt in the debit of account 75 “Settlements with founders”, then profit cannot be distributed;
• at the time of the decision to pay dividends, the value of the company’s net assets is less than its authorized capital and reserve fund or will become less as a result of such a decision;
• the company meets the signs of insolvency (bankruptcy) or if such signs appear due to a decision on the distribution of profits. The signs of bankruptcy are given in the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”. In particular, these include a situation in which the company, within three months from the date of the deadline for fulfilling monetary obligations under contracts, including taxes and fees, will not be able to satisfy these requirements (clause 2 of article 3 of Law No. 127-FZ ).

So, if at least one of these criteria is met, then the amounts paid to the founders are not recognized as dividends, since they were accrued in violation of the law. And they will have to be charged taxes not at “dividend” rates, but at regular ones (letter of the Ministry of Finance of Russia dated October 14, 2005 No. 03-03-04/1/276).

What documents are used to document the payment of dividends?

To calculate dividends, the following documents are required (letter from the Federal Tax Service for Moscow dated February 14, 2007 No. 20-12/013749a):

• registered articles of association which provide for the payment of dividends;
• minutes (decision) of the general meeting of shareholders (participants) approving the payment of dividends for a certain year in a certain amount;
• documents confirming the number of shares or share in the authorized capital of each dividend recipient;
• financial statements, according to which the company has net profit in the amount required for payment.

Payment of dividends is confirmed by a payment document.

Is it possible to pay dividends from previous years' profits?

The regulatory authorities recognize that the company has the right to pay dividends from the profits of previous years (letters of the Ministry of Finance of Russia dated March 20, 2012 No. 03-03-06/1/133, Federal Tax Service of Russia for Moscow dated June 8, 2010 No. 16-15/060619@, dated June 23, 2009 No. 16-15/063489).

This position is also supported by judges (resolutions of the FAS of the North Caucasus District dated January 23, 2007 No. 08-7128/2006, East Siberian District dated August 11, 2005 No. A33-26614/04-S3-F02-3800/05-S1).

Attention!

It makes sense to mention the possibility of distributing the net profit of previous years in the organization’s charter.

By the way, according to the Ministry of Finance, dividends from the net profit of previous years can be paid only if this profit was not previously used to form funds. For example, a corporatization fund for employees of a joint-stock company. Otherwise, payments as dividends are not considered and, accordingly, are taxed at regular rates (clauses 1, 2 of Article 35 of Law No. 208-FZ, letters of the Ministry of Finance of Russia dated 03/20/2012 No. 03-03-06/1/133, dated 04/06/2010 No. 03-03-06/1/235).

Accounting when calculating dividends

When accruing dividends (both annual and quarterly), the following entries are made in accounting:

Debit 84 Credit 75-2

Dividends have been accrued to the founder, who is not an employee of the organization;

Debit 84 Credit 70

Dividends are accrued to the founder, who is an employee of the organization.

If dividends are accrued but not paid

It happens that a company accrued dividends, but for some reason did not pay them. Accrued but unpaid dividends must be restored to net profit three years after the dividend payment period established by the general meeting (the charter may indicate a longer period, but not more than five years) (clause 5 of article 42 of Law No. 208- Federal Law, paragraph 3 of Article 28 of Law No. 14-FZ).

The postings will be like this:

Debit 75-2 Credit 84 subaccount “Retained earnings of the reporting year”

Unclaimed dividends were restored as part of net profit.

When calculating income tax, dividends unclaimed by shareholders (participants) and restored to profit are not included in income (subclause 3.4, clause 1, article 251 of the Tax Code of the Russian Federation).

We increase the authorized capital

Net profit can also be used to increase the authorized capital, although in practice such use of net profit is quite rare.

Three conditions for increasing the authorized capital at the expense of profit

When increasing the authorized capital of an LLC at the expense of property, the following requirements must be met (Article 18 of Law No. 14-FZ, clause 9 of the joint resolution of the Plenum of the Armed Forces of the Russian Federation No. 90 and the Supreme Arbitration Court of the Russian Federation No. 14 of 12/09/99):

1. A decision to increase the authorized capital in this manner must be made by the general meeting of participants on the basis of data from the company’s financial statements for the year preceding the year during which such a decision was made. At least 2/3 of the LLC participants must vote for it (unless the need for a larger number of votes to make such a decision is provided for by the charter);

2. When the authorized capital increases, the nominal value of the shares of all participants in the company increases proportionally without changing the size and ratio of their shares.

3. The amount of increase in the authorized capital should not exceed the difference between the value of the company’s net assets and the amount of the authorized capital and reserve fund of the company.

Example 1

The authorized capital of the company is RUB 1,100,000. Reserve fund - 400,000 rubles. As of January 1, 2013, the value of net assets was equal to 3,010,152 rubles, the amount of retained earnings was 3,100,000 rubles. The maximum amount for increasing the authorized capital is RUB 1,510,152. .

It is clear that the authorized capital, the size of which the company intends to increase, must be fully paid by the founders.

As for joint stock companies, the procedure for increasing the authorized capital at the expense of net profit will be slightly different.

The authorized capital of a joint-stock company can be increased by increasing the par value of shares or placing additional shares (Clause 1, Article 28 of Law No. 208-FZ).

The decision to increase the authorized capital by increasing the nominal value of shares is made by a simple majority at the general meeting of shareholders. And the decision to place additional shares can be made either by a simple majority at a general meeting of shareholders or by the board of directors of the company unanimously, if the company’s charter allows this (Article 28 of Law No. 208-FZ).

Documentation when increasing the capital

An increase in the authorized capital of a company requires amendments to the charter.

The procedure for making changes is provided for by Federal Law No. 129-FZ of August 8, 2001 “On State Registration of Legal Entities and Individual Entrepreneurs” (hereinafter referred to as Law No. 129-FZ).

So, you need to submit documents to the registration authority (Clause 1, Article 17 of Law No. 129-FZ):

• application for state registration of changes made to the charter, in form No. P13001 (approved by order of the Federal Tax Service of Russia dated January 25, 2012 No. ММВ-7-6/25@). It must be signed by a person performing the functions of the sole executive body of the company;
• decision to amend the charter;
• changes made to the constituent documents of a legal entity, or the constituent documents of a legal entity in a new edition in two copies;
• document confirming payment of state duty in the amount of 800 rubles. (Subclause 3, Clause 1, Article 333.33 of the Tax Code of the Russian Federation).

Taxation when increasing the authorized capital

The organization itself, when increasing its authorized capital at the expense of its own property, including from retained earnings, does not generate income (subclause 3, paragraph 1, article 251 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated 04/09/2007 No. 07-05-06/ 86).

Let's figure out how an increase in the company's authorized capital will affect its founders. More precisely, will the following be considered income for tax purposes?

• for LLC participants - the difference between the new and old nominal value of the share;
• for JSC shareholders - the difference between the par value of new shares and the original ones.

JSC shareholders - legal entities will not have taxable income, this is expressly stated in subparagraph. 15 clause 1 art. 251 Tax Code of the Russian Federation. According to this norm, when determining the tax base, income in the form of:

• the value of shares additionally received by the shareholder organization, distributed among shareholders by decision of the general meeting in proportion to the number of shares owned by them;
• the difference between the par value of new shares received in exchange for the original ones and the initial shares of the shareholder when distributing shares among shareholders when increasing the authorized capital of the joint-stock company (without changing the shareholder's share of participation in this company).

But the situation is different with the participants of an LLC - legal entities. About them in sub. 15 clause 1 art. 251 of the Tax Code of the Russian Federation is not mentioned. There are clarifications from the Ministry of Finance that when increasing the authorized capital at the expense of retained earnings from previous years, participants will have non-operating income on which they must pay income tax (letter of the Ministry of Finance of Russia dated May 30, 2013 No. 03-03-06/1/19742, dated 09.26.2011 No. 03-03-06/1/588).

However, judges in some decisions express the opinion that when increasing the authorized capital at the expense of net profit, the participants do not receive any income. They note that the profit in this case does not pass to the participants, but remains a separate property of the company. Participants only increase the nominal value of their shares. Owners of shares will receive actual economic benefit only when any of the property rights are realized.

This means that the organization - a participant in the company does not have economic benefits and income, as well as a tax base for calculating profit, because an increase in capital at the expense of the retained earnings of the company, which does not change the actual shares of participants in the authorized capital, does not lead to a change in their property (liabilities) ) rights (resolution of the Federal Antimonopoly Service of the Volga Region dated February 16, 2009 No. A65-11409/2006). However, relying on this court decision is risky - so far we are not talking about established practice on this issue or any trend.

Individual participants in an LLC, when increasing capital from retained earnings from previous years, receive income in the form of the difference between the original and new nominal value of their shares.

The date of receipt of income is the date of state registration of the increase in the authorized capital of the company. On this date, the organization that is the source of income must calculate, withhold from the taxpayer and pay the amount of personal income tax in the general manner (letters of the Ministry of Finance of Russia dated January 26, 2007 No. 03-03-06/1/33, dated December 19, 2006 No. 03-05- 01-04/336). The same is true for JSC shareholders.

It will be quite problematic to challenge this opinion in court. Previously, the courts supported taxpayers. The judges indicated that an increase in the nominal value of a share in the authorized capital of an LLC at the expense of retained earnings in relation to a participant cannot be regarded as receipt of income by an individual (resolution of the Federal Antimonopoly Service of the Ural District dated May 28, 2007 No. F09-3942/07-С2, East Siberian District dated 07.25.2006 No. A33-18719/05-F02-3629/06-S1, Moscow District dated 02.26.2009 No. KA-A41/1046-09).

However, in Determination No. 81-O-O of January 16, 2009, the Constitutional Court of the Russian Federation expressed a different position. The court recognized that tax exemption by its nature is a benefit that represents an exception to the principles of universality and equality of taxation arising from the Constitution of the Russian Federation, by virtue of which everyone is obliged to pay a legally established tax on the corresponding object of taxation. The establishment of benefits is the exclusive prerogative of the legislator. And when increasing the authorized capital at the expense of retained earnings, no benefit is provided. And arbitration courts began to follow this trend.

Thus, the Federal Antimonopoly Service of the Volga Region decided that income in the form of the difference between the original and new nominal value of the share formed in connection with the increase in the authorized capital of the company at the expense of retained earnings of previous years, as well as the contribution of the participant, is subject to personal income tax (resolution dated 02.10.2011 No. A78-928/2010).

Accounting when increasing capital

When increasing the authorized capital, the following entries are made in accounting:

Debit 84 Credit 80

The increase in the authorized capital due to net profit after registration of the change is reflected.

Forming reserve capital

Reserve capital is part of the equity capital allocated from the organization’s profits to cover possible losses and damages. The amount of reserve capital and the procedure for its formation are determined by the legislation of the Russian Federation and the organization’s charter.

Joint stock companies are required to create a reserve fund (capital) from net profit. Every year, at least 5% of net profit must be allocated to the reserve fund (capital). Contributions may be terminated when the reserve fund (capital) reaches the amount provided for by the charter of the joint-stock company. The minimum amount of the reserve fund (capital) of a joint-stock company is 5% of the authorized capital (clause 1, article 35 of Law No. 208-FZ).

The reserve fund of the joint-stock company is intended to cover its losses, as well as to repay the company's bonds and repurchase the company's shares (Clause 1, Article 35 of Law No. 208-FZ).

An LLC can also create a reserve fund (capital), but it is not obligated to do so. The society determines its size and the procedure for its formation independently (Article 30 of Law No. 14-FZ).

For LLCs, there is no requirement for mandatory contributions.

Accounting when forming a reserve fund

When forming reserve capital, the following entries are made in accounting:

Debit 84 Credit 82

Net profit was used to form a reserve fund (capital) according to the standards approved by the charter.

We cover losses from previous years

When using net profit to cover losses of previous years, the following entries are made in accounting:

Debit 84 subaccount “Retained earnings of the reporting year” Credit 84 subaccount “Uncovered loss of previous years”

Net profit was used to pay off losses from previous years.

We use net profit to purchase property

At a general meeting, shareholders of a joint-stock company or members of an LLC may decide to allocate part of retained earnings to the acquisition of non-current assets. Owners have the right to make such decisions. But the question arises, what should an accountant do with account 84 “Retained earnings (uncovered loss)”. The Instructions for the Application of the Chart of Accounts (approved by order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n), the accounting regulations, as well as other regulations provide for only a few cases when it is possible to make a posting by debiting account 84:

1) dividends are accrued to shareholders or members of the company;

2) a reserve fund was created (replenished) in account 82 “Reserve capital”;

3) a loss was received based on the results of the reporting period;

4) after approval of the annual statements, a significant error was corrected (clause 9 of PBU 22/2010 “Correcting errors in accounting and reporting”);

5) a significant change in accounting policies is reflected retrospectively (clauses 14, 15 of PBU 1/2008 “Accounting Policies of the Organization”);

6) the authorized capital of a JSC or LLC has been increased at the expense of the company’s property.

For other cases, the Instructions for using the Chart of Accounts provide for the reservation of retained earnings.

To track the direction of use of funds, you need to organize analytical accounting for account 84. Sub-accounts are created for it.

The total balance of this account at the time of acquisition does not change, since investments from net profit do not lead to a decrease in the balance sheet currency. Analytical accounting for account 84 “Retained earnings (uncovered loss)” allows you to control the presence and expenditure of retained earnings, namely: “Profit to be distributed”, “Use of profit”:

Debit 84 subaccount “Profit to be distributed” Credit 84 subaccount “Use of profit”

The use of net profit is reflected (the date of reflection of the property in accounting).

Example 2

OJSC "Kometa" for 2012 received a net profit of 4,000,000 rubles. On April 30, 2013, at the general meeting of shareholders, a decision was made to distribute part of the net profit received for 2012, namely: net profit in the amount of RUB 590,000. was used to finance capital investments. On May 15, 2013, using these funds, the organization purchased commercial equipment worth RUB 590,000. (including VAT RUB 90,000).

The following entries were made in the accounting of OJSC "Comets".

Debit 08 Credit 60

- 500,000 rub. - production equipment was purchased;

Debit 19 Credit 60

- 90,000 rub. - “input” VAT is taken into account;

Debit 60 Credit 51

- 590,000 rub. - funds were transferred to the supplier for commercial equipment;

Debit 84 subaccount “Profit to be distributed” Credit 84 subaccount “Use of profit”

- 590,000 rub. - reflects the use of net profit aimed at financing capital investments;

Debit 01 Credit 08

- 500,000 rub. - equipment was put into operation;

Debit 68 subaccount “VAT calculations” Credit 19

- 90,000 rub. - submitted for deduction of “input” VAT on commercial equipment.

Thus, the balance of retained earnings for 2012 is RUB 3,410,000. (RUB 4,000,000 – RUB 590,000). The founders can use this amount at their own discretion.

Money management means a set of issues related to the investment of a trader's funds. This includes optimal portfolio composition, diversification, assessing the size of investments in a particular market (taking into account risk), the use of stop orders, the correct determination of the ratio of possible profits and losses, the choice of tactics after periods of success or failure, as well as a specific “conservative” trading style. or "aggressive".

RATIO OF POSSIBLE PROFIT AND LOSSES

Here we come close to the problem of the relationship between possible profits and losses. Since most trades are unprofitable, the only way to succeed in the futures market is if the winning trades outnumber the losing trades in monetary terms. This can be achieved by analyzing the ratio of possible profits and losses. For each potential transaction, a rate of return is determined. The rate of return must then be balanced against the potential losses if the market moves in an undesirable direction. Typically this ratio is set to 3 to 1, meaning the potential profit must be at least three times the potential loss. Otherwise, you should refuse to enter the market. If in the gold contract example the predetermined risk was $10, then the potential profit should have been at least $30.

Some traders, when calculating the ratio of possible profits and losses, include a probability factor in it. They argue that it is not enough to simply determine profit and loss rates, suggesting that the potential profit and loss figures must be multiplied by the percentage probability (that they will occur). Although from a statistical point of view this approach looks quite logical, at the same time it turns out that the trader is able not only to assess in advance the possibility of potential profits and losses, but also to assign percentage values ​​to them.

Set the ratio of possible profits and losses to no less than 3 1.

For the first project, the ratio of possible profits and losses is 5/2, i.e. per 1 million USD possible loss is 7.5 million USD. possible profit.

The above formulas give the possible values ​​of profit and loss on a transaction if the opening price of the position is equal to the current market price P. But they do not tell us anything about the likelihood of receiving any profit or loss. These probabilities depend not so much on the absolute values ​​of the price and current support/resistance levels, but on the current picture of the development of the market situation, on the direction of the current market movement, i.e. on the dynamics of the development of the market situation. It is clear that, depending on the direction of price movement, these probabilities, even with the same ratios of current prices and support/resistance levels, will be significantly different. In general, questions of probability should be resolved using additional technical or fundamental analysis, depending on the planned period of holding the position. In most cases, the basics of technical analysis, which we discussed in the fourth part of the book, are sufficient for these purposes.

Let us emphasize once again that the formulas for assessing risks and potential income do not say anything about the likelihood of losses and income. And therefore, they are insufficient to calculate the expected amounts of profit and loss for the transaction. The probability of profit or loss is determined by the current dynamics of the market situation. Therefore, analysis of formulas showing the size of possible risks and the risk/reward ratio is necessary, but not sufficient for making a decision on opening a position and choosing the correct entry points. Entry points should be determined by minimizing risk levels (47.12) - (47.13), which we will do in the next chapter.

Before discussing the content of the main approaches to business risk management, let us once again ask ourselves the question of what explains the modern interest in risk management. Now we can answer it quite simply by saying that risk management is an integral part of ensuring the resulting profitability of business activities. It is business risk management that establishes, checks and rearranges the relationship between the required levels of possible profit and acceptable levels of losses, between reactions to certain risks and the development goals of the enterprise. Indeed, until quite recently, as we have already noted, risk was considered by entrepreneurs as a negative concept - only as a danger - and only a pessimistic assessment was given regarding the perception of the nature of the risk itself.

In addition, the composition of shareholders may change during the financial year, so profits and losses must be distributed in a manner that takes into account the interests and degree of participation in the corporation of both new and old shareholders. Profits and losses can be allocated over periods during which the composition of shareholders did not change, either based on the number of days or the percentage of time each shareholder held the shareholding. The tax requirements of each option will vary, so please discuss all your options with your tax advisor before making any decisions.

By maintaining an equal ratio between the amount of profit and the amount of losses per one average transaction (positive and negative, respectively), you get the opportunity to work with money rather than play. If you do not master this element of trading, then even if you are an excellent analyst, you are doomed to ruin, since the speculative market is a market of professional players, and everyone else is doomed.

Aggressiveness/conservativeness. Decisions made on a given system under conditions of uncertainty are designed for a certain ratio of expected profit (under favorable developments) and possible loss (under unfavorable circumstances).

A novice trader first of all needs to understand the following. Whether he likes it or not, whether he understands it or completely denies it, all price fluctuations in the commodity, currency, options and futures markets are basically (with rare exceptions, which only confirm the rule) subject to strict laws. Prices are not random, but completely predictable, like the weather, natural phenomena and many other events in our lives. The problem is that it is very difficult to believe. And this lack of faith closes the way to the world of profitability of this business. Futures trading is not roulette, as amateurs think. This is a deeply scientific business with strict laws and patterns, many years of experience of the extraordinary minds of the planet and an established methodology. True, until the moment a novice trader realizes the reality of the possibility of predicting future price movements in the market, the world of technical analysis is closed to him. The most stubborn ones can argue for a long time about the absurdity of analyzing price charts, but many eventually come to the need for this analysis after observing the markets. And then the world of visual analysis opens up before them in all its glory and the exclamation How did I not notice this before crowns their epiphany. From this moment, everything falls into place, and the person moves on to the next stage - training, which lasts a lifetime and already brings real money, since theory in this case is very closely adjacent to practice and market observation is always accompanied by opening a position and subsequent closing . And this, in turn, causes profits to be credited to the gaming account or losses written off from it by your broker. And this ratio will also not be random, but dependent in direct proportion to your diligence and desire to learn to play professionally, gain experience and polish your skills every day.

The best investors describe their potential market opportunities in terms of reward-risk ratio. These market professionals evaluate the amount of risk, or R. If you plan for an investment to make a profit that is three times the amount of possible losses, then the risk level will be expressed as 3R. We can use this valuation method for any of our investments, regardless of the asset it is allocated to,

Every entrepreneur should know what the income and profit of an enterprise are, and how they differ from revenue.

Profit and income are the main financial indicators of the economic activities of various organizations, regardless of their form of ownership. They can give an idea of ​​the overall profitability of the enterprise.

The costs of social and production development of the company must be financed from profits. The source of financing of the state budget is considered to be the corporate income tax.

What is revenue (turnover)

Revenue - money received (proceeds) by an enterprise, firm, entrepreneur from the sale of goods and services, proceeds from sales. That is, this is the entire amount of money that was received after the sale of the goods.

Example of revenue (turnover), Petya sold 100 phones for 10,000 rubles. Revenue will be 100*10,000 = 1,000,000 rubles.

Revenue from the sale of certain products is divided into two main types - net and gross:

• Under net revenue means the amount of money after all possible deductions, taxes, discounts and the cost of the returned goods.
• Gross revenue is the total amount of cash received after the sale of certain products or provision of services.

Income = revenue (turnover) - the cost (or purchase price) of goods or services. Taxes are also deducted from this amount. Material costs are funds that were spent on purchasing products or necessary equipment. Such costs include various social contributions. The issuance of wages has nothing to do with this category.

Income example, let’s say the cost of Petya’s phones is 5,000 rubles. There are only 100 pieces, which he sold for 10,000 rubles each. Then income = 100*(10,000 - 5,000) = 500,000 rubles.

Labor costs and profits are the main components of the income of a particular enterprise. The market value of the product and the general market conditions have a direct impact on the level of income of the organization. Possible receipts from individuals and legal entities do not belong to the income side of the company.

If income is subject to tax payments, then after deducting them, an amount remains that includes the following elements:

• Insurance and investment income. These are amounts received during investment activities and the cost of insurance premiums.
• Consumer funds whose activities require social expenditures.

Incomes can be marginal, total and average.

• Marginal Revenue- this is the difference by which the organization’s total income changes after the sale of a certain unit of goods. Demonstrates the overall return on investment of the firm.
• Total income- this is the final result of the company’s economic activity, the difference between the cost of goods and production costs.
• Average income received after the sale of one unit of goods. It is equal to the price of a specific product sold.

Experts also highlight the concept of other income. These include various penalties and interest for placing a deposit.

What is profit

Profit is the difference between costs and revenues, where the latter are an indicator of financial activity.

Example of profit, Petya’s income from the sale of phones amounted to 500,000 rubles. But you still need to pay taxes, pay the manager’s salary, pay rent, etc.

Maximizing profits has always been one of the main goals of a successful businessman. It is considered the most important evaluative general indicator of the activities of a particular company.

This concept includes the following main components:

• Profit from the sale of property and the sale of material assets.
• Funds that were received from additional (non-core) activities of the organization. This refers to securities, dividends, and funds from renting out real estate.
• The difference between the funds received from the sale of a certain product and its real value.

If it has been revealed that the enterprise’s profit is zero, costs can be considered the result of such economic activity. The limiting indicator of this concept can be obtained by selling an additional copy of the product.

There are several main functions of enterprise profit:

• Provides funds for the development of the company.
• Forms taxes on profits of commercial enterprises.
• Shows the final economic result of the activities of an ordinary enterprise.

For productive profit management, experts recommend taking into account its maximum indicator, which you need to focus on. Some company managers actively practice lowering their pricing policy. But this should not be aggravated. If there is a high demand for a product, the profitability of the enterprise as a whole can drop catastrophically.

Experts advise offering your clients inexpensive analogues of goods and services that are considered the most in demand. Such measures will help maintain the attractiveness of products and a normal price category.

This financial indicator has several classifications. Based on the results of economic activities:

• Minimum permissible and maximum possible, which occurs with minimal costs and maximum profits.
• Regulatory– this is the standard minimum indicator provided by the enterprise.
• Underreceived– a loss that occurred due to the fact that one of the parties to the transaction violated its obligations.

Profits may or may not be taxed. It is differentiated into economic and accounting depending on costs. The first is the difference between accounting profit and additional, forced expenses.

As for the second option, it is positioned as the difference between the costs incurred and the income of the enterprise.

Gross profit is the difference between the total income of a particular organization and the amount of costs. Net profit can be calculated by subtracting all associated expenses from gross profit.

About EBIT and EBITDA profit

These are two more types of profit that should be emphasized separately.

EBIT profit is positioned as an intermediate value between gross and net indicators. Some people think that this is operating profit and are mistaken. This concept may also include non-operating profit. The amount of EBIT profit can be calculated based on the amount of profit and loss before taxes. This indicator must be positive.

The value of profit directly depends on the depreciation rate and the method of its calculation.

EBITDA is the amount of earnings before interest, depreciation and amortization, and shows only the inflow of cash. This analytical indicator is calculated on the basis of the financial statements of a particular organization and is the main indicator of how profitable the company’s activities are overall, regardless of various debts and depreciation methods.

Having determined EBITDA, you can calculate the organization's debt load. To do this, debt indicators are divided by nominal profit.

The indicated values ​​of EBIT and EBITDA come down to one thing - “bringing to a common denominator” the economic indicators of organizations from different countries. The tax systems of different countries are not similar to each other. This means that income tax rates will not be equal either. The introduction of EBIT and EBITDA into accounting practice allows us to correct this situation.

Experts in the economic field have a generalized point of view on how to maximize profits for a particular company. It is necessary to equate marginal revenue with marginal cost. In this case, the profit of the enterprise should be maximum. But still, this is individual for different organizations.