Profit is the difference between all expenses andreceived income. It is she who characterizes the level of efficiency of the enterprise. Accounting for the formation and distribution of profits is reflected in the balance sheet. But in the forms of balance distinguish several of its varieties:
2. Profit from sales - calculated as gross profit - management costs.
3. Profit before taxation. It is formed by a difference of the previous indicator with other incomes and expenses.
4. Net profit. This is exactly the kind of enterprise income that remains after payment of all tax collections.
The amount of profit depends directly on the amountreceipts from sales and production costs. But this is an accounting definition of profit, there is also an economic definition. According to him, profit depends on the magnitude of entrepreneurial risk, and the higher it is, the greater the probability of obtaining a double profit.
Its magnitude is affected not only by the prices of raw materials and materials, but also by the state of the market. If the enterprise sells innovative products that do not have competitors, accordingly, the profit will be higher.
The distribution of profits is carried out evenly forreplenishment of funds and for production purposes. The net profit of the organization is spent for the development of production and the promotion of the collective. Also, the distribution and use of the organization's profit is made by the following branches:
1. Purchase of new equipment or reconstruction of an existing one.
2. Increment of own circulating assets, which are lost as a result of inflation.
3. Refund of loans or payment of interest on them.
4. Protection of the environment from pollution.
5. Bonus staffing.
Thus, the distribution of profits is carried out in two directions:
- For accumulation, i.e. increasing part of the property,
- For consumption. Launch a new range of funds for further receipt.
At the same time, the accumulated part of the profitnot necessarily spend in the next reporting period. It can be left for as long as the organization does not begin to incur losses for one reason or another. Then the cumulative part will go to cover the losses. Profit attributable to accumulation, is the result of the fact that the company operates successfully and financially independently.
If we consider a joint-stock company, thenthe distribution of profits in the funds covers and the definition of the owner of the fund, which may also be different. The consumption fund is in the hands of the labor collective (but even if it is not located, it is distributed according to the needs of the employees). Therefore, these funds do not belong to the capital of the enterprise. And the accumulation funds are the property of shareholders and founders. The free part of the profit, as a rule, joins the authorized capital.
Competent distribution of profits guarantees the company financial stability in the market and expansion of its business.