What is the difference between revenue and income. Revenue is a key concept in the activities of the enterprise Revenue total income and profit

The main goal of the financial and economic activities of each commercial organization is to make a profit, which is one of the key indicators of such activities (Article 50 of the Civil Code of the Russian Federation). Also, one of the main indicators of the company's activity is its revenue. What is the difference between revenue and profit, we will consider in this consultation.

Revenue, profit and income: what is the difference

In order to answer the questions of how income differs from revenue and profit, as well as how revenue differs from profit, let's figure out how revenue and profit are formed.

The income of the company is recognized as receipts of funds, other property and receipts from the repayment of obligations, which lead to an increase in the capital of this organization, with the exception of the contributions of its members (clause 2 of PBU 9/99).

The income of the organization is divided into income from ordinary activities and other income (clause 4 of PBU 9/99).

The company's income from ordinary activities is the proceeds from the sale of goods, receipts from the performance of work or the provision of services (clause 5 of PBU 9/99).

Revenue consists of the amount of monetary funds received, other property, calculated in monetary terms, and the amount of receivables (in the part not covered by the receipt) from the company's main activity, with the exception of the following receipts (clause 3, clause 6 of PBU 9 / 99):

amounts of VAT, excise taxes, export duties and other similar mandatory payments;
amounts under agency agreements, commission agreements and other similar agreements in favor of the principal, principal, etc .;
amounts received in the order of prepayment for goods, works, services;
the amount of advances in payment for goods, works, services;
deposit;
amounts received as a pledge, if the contract provides for the transfer of the pledged property to the pledgee;
amounts received as repayment of a loan, a loan provided to the borrower.

In addition to income in the form of proceeds from the sale of goods, performance of work and provision of services in the main type of activity, the income of the organization is also other receipts from other types of activities (investment, financial), with the exception of receipts specified in clause 3 of PBU 9/99 (p. 4 PBU 9/99).

In particular, other income includes income from the provision of their property for temporary use for a fee; receipts from participation in the authorized capital of another organization; interest on loans and borrowings; fines and penalties for violation of the terms of contracts (clause 7 of PBU 9/99).

That is, income is not revenue or profit. These are all receipts that lead to an increase in the company's capital.

The profit of the company is defined as the positive difference between the income received (which includes the proceeds from the sale of goods and services, income from renting out property, interest income, fines received, etc.) and the expenses incurred aimed at obtaining these incomes.

What is the difference between revenue and profit (in simple words)

So, income is revenue from the sale of goods, performance of work, provision of services, as well as other non-operating receipts (clause 4, clause 5 of PBU 9/99, clause 1 of article 248 of the Tax Code of the Russian Federation, clause 1 of article 249 of the Tax Code RF).

The difference between revenue and profit is as follows.

Revenue is the volume of sales, the amount of money received from the sale of manufactured or previously purchased products, services rendered, work performed (Article 249 of the Tax Code of the Russian Federation).

Profit is a part of income (including proceeds from the sale of goods, works, services) remaining after reimbursement of costs aimed at obtaining it (Article 247 of the Tax Code of the Russian Federation).

Unlike profit, revenue cannot be negative or zero.

Let us explain with an example. The organization sold goods worth 100,000 rubles per month. This is the income of the organization. The cost of purchasing these goods amounted to 50,000 rubles. Other expenses of the organization per month - 20,000 rubles. Then the profit of the organization for the month will be:

RUB 100,000 - 50,000 rubles. - 20,000 rubles. = RUB 30,000

Profit is one of the main indicators of a company's performance. The receipt or absence of profit characterizes the activities of the company as successful or unprofitable. The more profit the better. This means that the company works fine, pays for the costs and, moreover, the entrepreneur who has made a profit can dispose of "free" money: direct it to the further development of the company or spend it on personal needs.

To determine profit, you need to know and be able to find such related indicators as costs (otherwise expenses or costs) and revenue (income) of the company. People often don't see the difference between profit and revenue. In addition, profit is divided into types: balance sheet, net profit, taxable and others. In our article we will understand the intricacies of this most important indicator for every businessman.

Before explaining what profit is, you need to distinguish between 2 concepts: revenue and profit.

Article 249 of the Tax Code of the Russian Federation and the comments to it indicate that these are receipts from the sale (sale or other paid alienation) of goods, services, property and property rights, both their own and acquired for resale.

An individual entrepreneur (IE) Ivanov bought a batch of Xiaomi mobile phones in the amount of 10 pieces on the AliExpress website, at a price of 12 thousand rubles for 1 phone. Within a month, he sold phones at a price of 20 thousand rubles apiece. REVENUE was: 10 * 20,000 = 200,000 rubles. That is, revenue is the income received from the sale and does not include expenses.

The entrepreneur spent 10 * 12,000 = 120,000 rubles on the purchase of telephones. This is the COST that represents.

Now we will subtract the costs from the proceeds: 200,000 - 120,000 = 80,000 rubles - this is the PROFIT received by Ivanov from the purchase and sale of telephones.

This example "on the fingers" helps to understand how to find a profit. But there are nuances. Profit is classified into different types and depends on cost categories, tax burden, and other factors. This will be discussed further.

The concept of "profit" is characteristic of entrepreneurial activity. This indicator is used in the Civil Code of the Russian Federation, due to which, in Article 50 of the Civil Code of the Russian Federation, legal entities are subdivided into commercial and non-commercial organizations.

Profit appears in federal laws on the activities of production cooperatives, business societies, and other business entities; it is mentioned in laws on the federal budget.

More precisely, this concept is disclosed in the Tax Code of the Russian Federation. Article 247 of the Tax Code of the Russian Federation states that the profit received as a result of the taxpayer's activities is subject to the collection of income tax. Profit is recognized as income received, which is reduced by the amount of expenses incurred. What relates to expenses is defined in Articles 252-255 of the Tax Code of the Russian Federation, and is described in detail below.

Let's clarify: the expenses of the company, which generate profits and are recognized for tax purposes, must satisfy 3 principles:

Be directly involved with commercial activities. For example, the Orion company purchased computers for accounting for 150 thousand rubles for the accounting department. This amount is fairly included in the expenses of the firm. But 10 thousand rubles spent on an aquarium with fish in the same accounting department cannot be attributed to expenses aimed at carrying out commercial activities.

Cost expediency is required from an economic point of view. So, if 3 full-time accountants work in the accounting department of Orion LLC, then the purchase of 5 computers will be an unjustified waste of financial resources.

Documentary proof of expenses is required. If in the same LLC they lost the invoice for the purchase of 1 of 3 computers, and it is impossible to confirm the purchase, then the costs of such a technical device will not be recognized in order to reduce the tax base.

What are the types of profit

There are two main approaches to determining profit, they find:

accounting profit,
economic profit.

What is accounting profit

This view is based on the actual accounting data of the company. Accounting profit is the difference between the income and expenses of the enterprise for a specific period of time. Here, accounting (explicit, or, in other words, external) costs of the company are taken into account.

Accounting profit = Revenue - accounting (explicit) expenses

These costs include:

the salary of the personnel of the enterprise;
funds spent on equipment, buildings, structures, machine tools;
depreciation of fixed assets;
payment of transportation costs;
expenses for payment of utilities, electricity;
payments to suppliers of raw materials, other material services;
payment for intermediary, insurance, banking services.

The difference from accounting is that the costs additionally include alternative (implicit, or internal) costs. These are the costs at which, presumably, the firm could make a large profit from its own resources.

When calculating this type of profit, those lost costs are taken into account, which, with a more rational use of the resources available to the company, would bring additional benefits.

Find the economic profit using the following formula:

Economic profit = Revenue - (External + Internal costs)

You can calculate in another way:

Economic profit = Accounting profit - internal (implicit) costs

Let's give an example:

Businessman Petrov took out a bank loan and opened a production workshop for the production of furniture for sawing. The premises are owned by the entrepreneur. Explicit costs include: wages for the designer and two workers, depreciation of the computer and 2 sawmills, monthly utility bills, interest payments, and procurement of materials. For a month, these costs amount to 200 thousand rubles. On average, Petrov receives orders for 300 thousand rubles a month.

Let's find the profit indicators:

The accounting profit will be equal to: 300,000 - 200,000 = 100,000 rubles.

If Petrov rented out the workshop premises, it would bring 40 thousand rubles a month. Working at a plant in his main specialty - a foreman for setting up machine-tool equipment - he could receive 25 thousand rubles a month. These are implicit benefits, or internal costs.

Thus, the economic profit is: 300,000 - (200,000 + 40,000 + 25,000) = 35,000 thousand rubles.

It is obvious from the example that the accounting profit in this case is greater than the economic one. This suggests that the entrepreneurial activity of IE Petrov brings more benefits and advantages than the absence of such.

If we assume that the prices for renting out the workshop premises for rent have risen from 40 to 80 thousand rubles a month, and Petrov received an offer from his previous job to become a foreman of equipment adjustments with an earnings of 50 thousand rubles, then the economic profit will be: 300,000 - (200 + 80 + 50) = - 30,000 thousand rubles.

A negative indicator reflects the inexpediency of the business, in this case, Petrov would have to rent out the premises and go to work as a foreman at the plant.

In case of negative economic profit, options are being considered for re-profiling or closing their own business.

The analysis of accounting and economic profit is complemented by a closely related indicator called "normal profit". This type of profit is used in investment activities to assess the effectiveness of investments in a particular business.

Normal profit

They talk about the appearance of normal profit when economic profit is equal to zero. This equilibrium is achieved when the company's total income is equal to total costs.

In the example with IE Petrov, normal profit will be obtained with the number of orders in the amount of 265 thousand rubles, while the value of economic profit is zero, and the company's expenses fully correspond to income. Everything that Petrov earned above this level, which is 300 thousand - 265 thousand = 35 thousand rubles - is "super profit".

The excess over the level of normal profit reflects the positive dynamics of the enterprise's development. A value below the level of normal profit characterizes the profit as negative, and the firm's activities as unprofitable.

What does this mean for the investor? The most direct. Achieving the level of normal profit characterizes the business as attractive enough for investment.

If the profit exceeds the normal rate, then investing in it makes sense and is beneficial for the investor.

If the profit is less than normal, the investor loses income and may decide to withdraw funds from the business and redirect them in a different direction.

Video: Economic and accounting profit

Additional classification of the organization's profit

There is another gradation based on the inclusion in the calculation of various income and expenses of the company. Let's take a closer look at this classification:

Gross profit

It is an indicator of the return on production or from the sale of goods, the provision of services and is directly related to the cost of such operations. At the same time, the costs of management and marketing, advertising, sales of products (business expenses) are not taken into account. That is, gross profit reflects receipts arising from the turnover of goods or the production cycle of the production of products of the enterprise. It is most often used by the management of the enterprise when planning forthcoming revenues and costs. Production costs are not constant, they can change, so the estimate is made for a short period, for example, for a financial year.

Gross profit is calculated based on the financial results obtained by the company and reflected in the financial statements, namely in the “Profit and Loss Statement”.

It is determined by the following formula:

Gross Profit = Revenue - Cost

Other receipts are excluded from revenue, for example:

sale of fixed assets: equipment, buildings, structures;
from the sale of securities;
gratuitous receipt of property as a result of donation;
fines or penalties paid by counterparties for breaches of contractual obligations.

There are exceptions when, for example, the sale of equipment is enshrined in the accounting policy as one of the main activities, in which case such transactions will participate in the calculation of gross profit.

The cost is also found only on the basis of production costs, or those that are aimed at selling goods or providing services.

So, in a production organization for calculating gross profit, the following costs are attributed to the cost price:

for raw materials, inventories, working tools;
fuel and energy costs;
depreciation and maintenance of machine tools and equipment;
for the salaries of the main personnel, taking into account the required contributions to funds: pension, medical and social insurance.

In a trading company, the cost is made up of the following items of expenses:

for the purchase of goods for subsequent resale;
for salaries of employees, with contributions to the Pension Fund of the Russian Federation, FSS, MHIF;
lease payments for renting retail space, security.

For the 1st quarter of 2019, the Melange confectionery earned 650 thousand rubles. In addition to the business owner, the company employs 2 bakers and a salesperson, and a freelance accountant maintains the accounting department. The accounting policy stipulates that the purchase of raw materials and inventories, as well as the salaries of employees are included in the cost price.

During this period, the owner decided to sell 1 out of 2 kneaders due to insufficient workload of two machines. The sale of the kneader brought 300 thousand rubles, but this amount is not included in the calculation of gross profit, since such a transaction does not relate to the main activity of the company.

Let's find the production cost: 175 + 15 + 110 + 24 + 60 + 25 = 409 thousand rubles.

The gross profit of the Melange company for the 1st quarter was: 650 - 409 = 241 thousand rubles.

Profits from sales of products in manufacturing are the same as profits from sales in a trade or service provider.

It is a more in-depth indicator than the balance sheet profit, it allows the company's management to assess how efficiently the production or sale of products, taking into account the commercial and administrative costs. The amount of profit from sales affects the enterprise, that is, the ability to cover current and pay off unforeseen expenses that may arise at any time.

It is found by the following formula:

Profit from sales (sales) = Gross profit - administrative and selling expenses

Selling and administrative expenses are included in general expenses related to the ordinary activities of the company. Some of them are related to the cost of goods produced or sold.

In fact, there is no specific concept of such expenses in the tax legislation and other regulations of the authorities. There is a generally accepted rule, and each company in its accounting policy, at its discretion, assigns part of the costs to management or commercial items of expenditure, then they are reflected in the necessary accounting accounts.

It is customary to include those costs of an enterprise that do not directly relate to the production or sale of goods or the provision of services to management costs.

This includes:

Commercial expenses include those that are included in the cost of production and are directly related to the main activities of the company, for example:

Continuing our example, we will determine the profit from the sale of the Melange confectionery for the 1st quarter of 2019. To do this, we subtract commercial (costs of raw materials delivery, packaging and advertising) and administrative costs from the received gross profit.

241 - (8 + 12 + 25 + 15) = 241 - 60 = 181 thousand rubles - made up the profit from the sale.

Profit before tax

This is the amount that is the basis, or the basis on which the income tax is calculated. It represents an interim financial total, when all receipts and all expenditures of the enterprise's funds are taken into account before taxes are paid. It is found like this:

Profit before tax = Revenue + Other income - Cost of sales - Selling expenses - Administrative expenses - Other expenses

In the accounting standards specially developed by the Ministry of Finance and the Central Bank of the Russian Federation, namely in the "Accounting Regulations" 9/99 No. 32n and 10/99 No. 33n, other income and expenses include funds received or withdrawn from:

provision of company assets for temporary disposal;
onerous transfer of intellectual property rights;
sale or write-off of fixed assets, non-financial assets (other than goods);
interest on loans;
accrual of penalties, penalties for non-fulfillment of contractual obligations;
charity;
other, different from the main, activity.

In our example, for the 1st quarter of 2019, the confectionery received other income from the sale of the kneader in the amount of 500 thousand rubles. There were no other miscellaneous expenses for this period in the company.

Profit before tax will be equal to: 650,000 + 300,000 - 175 - 15 - 110 - 24 - 60 - 25 - 8 - 12 - 25 - 15 = 481 thousand rubles - this amount serves as the tax base for paying income tax.

Net profit

This is free money left at the disposal of the company after all taxes and deductions. Calculating the net profit, the accountant sums up the activities for the reporting period. The obtained result is evaluated by the management and the owner of the business for the further direction of the obtained profit for the development and expansion of production, the purchase of modern technology and equipment, the introduction of new technologies. By the amount of net profit, investors assess their prospects for investing in a company. If the company is solvent, banks agree to issue loans. A good net profit of the company attracts business partners to mutually beneficial cooperation.

How to Calculate Net Income? It is found from the aggregate amount of the company's income for a specific period, taking into account all expenses incurred. At this stage, extraordinary income or expenses are added to the previously considered receipts and outflows of funds. These are the consequences of force majeure situations (fires, floods, man-made disasters, terrorist attacks), due to which the company incurs losses or receives insurance compensation.

The net profit formula is as follows:

Net income = Profit before tax + extraordinary income - extraordinary expenses - income tax

In 2020, legal entities pay tax at the basic rate of 20% (except for preferential categories), of which 3% goes to the federal budget, and 17% goes to the regional budget at the location of the taxpayer-legal entity. Thus, the confectionery "Melange" is obliged to pay to the budget: 481,000 * 20% = 96,200 rubles.

The calculation of the net profit of the Melange company is as follows: 481,000 - 96,200 = 384,800 rubles.

Balance sheet profit

Balance sheet profit is reflected in the main documents of the organization's financial statements - Form No. 1 "Balance Sheet" and Form No. 2 "Statement of Financial Results". It is determined by the increase for 1 quarter, half a year, 9 months, a year. This parameter is assessed in dynamics, that is, for different periods of time, for example, the indicators of the previous and the current year are compared. At the same time, various balance sheet items are analyzed, the factors that influenced the decrease in profits are tracked. If the profit plan is not fulfilled, the business owner can assess the reasons for this and take measures to improve the financial and economic situation.

The balance sheet profit is found by the formula:

Balance sheet profit = Income from operating activities + Other income - Expenses from operating activities - Other expenses

Many enterprises - representatives of small businesses - use simplified reporting and are not required to draw up Form No. 1, therefore they do not use the concept of balance sheet profit.

In our example, the balance sheet profit of the Melange confectionery will coincide with the profit before taxes and will amount to 481 thousand rubles.

Operating profit

This indicator is used by companies in Europe and America, and is less common in Russian accounting practice.

In the English version, operating profit is called EBIT - Earnings Before Interest and Taxes - literally: profit before taxes and interest on borrowed funds. Find it like this:

Operating profit (EBIT) = Gross profit - Selling expenses - Administrative expenses - Other expenses + Other income + Interest payable

In other words:

Operating profit = Balance sheet profit + Interest payable

It makes sense to calculate this indicator if the interest on loan obligations is high. If they are absent or the percentage of credit payments is insignificant, the operating profit will be equal to the balance sheet or profit before tax. That is, the dependence of the enterprise on creditors is reflected. Mainly, operating profit is of interest to investors and other interested parties as an opportunity to assess the financial condition and value of a company.

Margin profit

There is also such a thing as margin profit. It is equivalent to gross or balance sheet profit, but there are differences in the economic value of these values.

The profit margin is found as the difference between the company's revenue from operating activities and part of the costs, called variables. These include expenses that directly depend on the volume of products produced and are not separated into a separate category in Russian accounting, but are included in the cost price.

Profit marginal = Revenue from operating activities - Variable costs (Cost price)

The good thing about the profit margin is that it helps to calculate the profit not only in relation to the total volume of goods produced, but also in the context of a separate type of goods or per unit of production.

Marginal profit per unit of production = Selling price of goods (one marketable type) - Unit cost of goods (one marketable type)

For example, the Melange confectionery produces cakes and you need to find out which one is the most economically profitable.

Brownie cake brings the smallest marginal profit, knowledge of this allows the owner of the confectionery shop to plan production in a new way. You can remove this item from production or increase the final price for it.

Investors are interested in profit margins when planning new projects and investments in investment areas.

Factors affecting profit

Any enterprise constantly interacts with various phenomena that can positively or negatively affect the result of the company's activity - profit. This influence is external, independent of the enterprise itself, and internal, when a change in the situation within the company can increase or, conversely, reduce the efficiency of the business.

What can be the external factors influencing the profit

Let's list the main external factors:

Inflation.

In conditions of economic instability, high growth rates do not allow the enterprise to develop, the priorities are aimed only at “staying afloat”. Inflation "eats up" all savings, the entrepreneur has no opportunity for capital investments in production.

Increase in tax rates, change in preferential taxation policy.

In 2018, they increased by 3.9% (single tax on imputed income), which is actively used by small businesses. At the same time, at the regional level, the tax incentives for the movable property of legal entities were canceled. It is clear that such changes can negatively affect profit-making, especially in small businesses.

Adoption at the state level of legislative acts related to business issues.

For example, the law obliging all (with some exceptions) entrepreneurs to use online cash registers from July 2018. Thus, transparency of payments is achieved and an immediate flow of information to the tax office is ensured. On the other hand, many representatives of small business, especially in the regions and on the periphery of the Russian Federation, are unable to financially pull the introduction and maintenance of new technologies, so the small profits of such companies can go into negative territory.

Change in the cost of raw materials and supplies.

Obviously, an increase in the cost of production resources affects the increase in cost, and entails an increase in the cost of the final product. This, in turn, reduces sales, that is, it will negatively affect the size of the company's profit. Conversely, the conclusion of an agreement for the supply of affordable raw materials (subject to the quality of resources) will expand the volume of production or change the company's pricing policy. Such measures can attract buyers and increase profits.

Market situation.

Profits are influenced by the number of producers and consumers in the market, the ability to enter the market, whether it is high or low in the industry.

This is where creating a unique selling proposition can help. The buyer needs to offer a new interesting product that will be in demand. For example, in the Melange confectionery, personalized children's cakes are baked. This idea attracted many mothers to order such cakes for their child's birthday in this particular bakery.

Not less than external factors, the situation developing within the enterprise also affects the amount of profit. There are the following internal factors:

The company's turnover.

An increase in the number of products produced with a constant cost price can lead to an increase in profits. But first you need to predict the demand for the product, or find additional sales channels.

Expansion of the product range.

A wide range of products gives the buyer a choice. If you focus on the quality and prestige of certain types of goods, you can attract buyers with a high level of income.

High level of professionalism and quality of service

This factor is very important. The personal qualities of service personnel in a trading company or managers of manufacturing enterprises affect the attraction of customers or their departure due to inept work of the company's employees.

Technical equipment

Modern equipment helps save time and speeds up the production process, which has a positive effect on the company's turnover.

Business reputation of the company.

If the company has made a “name” for itself, the owner values its business reputation, business partners will be interested in cooperation with this particular company. When the company has established itself from the best side, customers become regular and bring relatives and friends. This is how the demand for products and profits grow.

External and internal factors influencing profit should be analyzed at all stages of the company's activities.

Why do you need to calculate and evaluate the company's profit?

Various situations may arise when it is necessary to estimate the profit:

1 To find out how the company has fulfilled the profit target, whether the reality meets the expectations. At the beginning of work or at the launch of a project, a business plan is drawn up, in which a development forecast is made, costs and profits are calculated, and the timing of work is assumed. In the business plan, they try to take into account all possible factors of influence on the development of the enterprise.

Having calculated the real, after all the necessary deductions and payments, that is, net, profit, it is compared with the planned one, and conclusions are drawn. If the profit is less than originally anticipated, the manager or the owner of the business can understand what went wrong, what decisions were wrong.

2 Determine the reserves for further profit growth. If during the calculation it became clear that the cost of production is high, then you need to look for new suppliers of raw materials. Reducing costs at a constant price will increase profits. Development of marketing activities: advertising and promotions, product presentations will attract the attention of buyers to the company and products. Sometimes new packaging helps to increase interest in a product.

3 Adjust the company's development strategy (develop successful areas). The calculation and assessment of profit indicators will help you decide in which direction to move next in order to increase the company's profitability. For example, if it is revealed that one of the types of products makes little or no profit, this is a reason for the management to think about whether it is necessary to produce this product, whether it is better to remove it from production, and use the freed up resources to produce products that are more profitable and in demand among buyers.

Profit and taxation

Any company operating in Russia is required to pay income tax. This is stated in the 25th chapter of the Tax Code of the Russian Federation.

The object for payment of tax is the profit received for a specific period as the difference between income and expenses.

Incomes are taken into account:

from the sale of products of its own production;
from the resale of purchased goods;
from the sale of property and securities;
costs not related to implementation (non-operating). They are spelled out in article 250 of the Tax Code of the Russian Federation and they include, for example, income from renting out property, property or work (services) received free of charge, exchange rate differences, income of previous years.

Expenses accepted for tax purposes include costs:

for raw materials and materials;
employee salaries;
depreciation deductions;
other expenses;
non-operating costs, for example: costs of issuing securities, legal costs.

If the company received not a profit, but a loss, then the tax base is considered to be zero.

Income tax is calculated at a basic rate of 20%.

Preferential rates are set at 0% - for medical, educational and social institutions, as well as on income from equity participation in other organizations, and upon receipt of dividends.

13% is paid by those Russian legal entities that have received dividends (except in cases of taxation at a zero rate) and income on shares certified by depositary receipts.

The specifics of taxation at a rate of 0% are disclosed in Article 284 of the Tax Code of the Russian Federation.

15% are paid by foreign companies on dividends received on shares of Russian companies, in accordance with Article 275 of the Tax Code of the Russian Federation.

Income tax is charged for a quarter, six months, 9 months (these are reporting periods) and is displayed on an accrual basis for the year (this is a tax period).

Enterprises are required to make monthly or quarterly income tax payments to the budget, tax for the year is transferred by the end of the 1st quarter of the next reporting year. Simultaneously with the payment of tax, the corresponding tax return is also provided.

Answers on questions

How income differs from profit and revenue

In a general sense, income is all the financial receipts of an enterprise from various operations, including non-production ones. Whereas revenue is money received only from the production or sale of goods, that is, from the main activity. Both revenue and income reflect the financial impact on the company, while profit is formed taking into account both the receipt of funds and their spending. Thus, income and revenues serve as the basis for calculating profit, this final indicator of a firm's performance.

Is it possible to include in the income tax expenses the completion of a training course by an employee of the company?

Article 264 of the Tax Code of the Russian Federation states that advanced training courses are considered expenses. At the same time, an agreement is concluded with the organization implementing the training program, and a certificate is issued upon completion of the training. If these conditions are not met, then training costs cannot be recognized for tax purposes.

On weekends, the company's employees were resting at a recreation center outside the city; a bus was ordered for the trip on behalf of the organization. Can the money spent on transportation be included in the expenses?

The Tax Code of the Russian Federation unequivocally gives a negative answer, since such expenses are not related to the official activities of the company.

What is the correct way to attribute mobile communication charges to expenses?

Payments to mobile operators are included in the company's management costs. To prove to the tax authorities the validity of these costs, it is better to officially approve the list of employees who will use mobile communications in their work. To confirm the use not for personal purposes, but for commercial activities, order a call detail from the operator.

Remember

Profit is the main component of any business. Without it, the meaning of entrepreneurship is lost, if you do not bear in mind the first steps of the existence of commercial activity. A negative result is possible at the very beginning of the project, in the future it is an indicator of the adoption of incorrect management decisions, the inappropriateness of the expenditure of material resources and financial assets of the company.
Each owner strives to achieve economic viability, freedom to dispose of profits. But for this, you first need to get it, and then learn to count.
The calculation of business profitability indicators is based on revenue, that is, those incomes that are received from the sale or production of products, as well as the associated costs. These costs must be directly related to the activities of the company, be justified and documented.
There can be a great variety of both revenues and costs in a company. Based on these differences, determine the gross, balance sheet, accounting, economic, operating, net and other types of profit.
Each of them can be used by the head of the enterprise, its owners and investors, shareholders of the company. Inspection and regulatory authorities, counterparties and partners of the firm can understand how effective the business is, how to build a strategy for further development, whether dividends will be high, whether the reporting is transparent and whether it is worth maintaining a partnership with this company.
Every entrepreneur is obliged to pay tax deductions for income tax to the budget on time. This is usually 20%, but lower rates apply.
The formation of profitability is influenced by various factors, both internal and external. The instability of the political or economic situation, high inflation, the introduction of legislative initiatives that restrict or support business development, competition, technological innovations - this is not a complete list of factors affecting the company's activities. By correctly using the changes and fluctuations of the internal and external environment, the owner or manager of a business can maximize profits.

ATTENTION: If you describe what it is in simple terms, then revenue includes the cost of goods or the purchase price plus added value. This is all the money that came to the company from the sale of the company's product.

From the point of view of the economic rationale, the definition of revenue is the total amount of funds that were received for a certain period of activity from the sale of goods or the provision of services. It is expressed as a positive value, but it may be equal to zero, the main thing is that it will never take a negative value.

In economics, the term "Revenue" is the sum of all income from the sale of goods, services and assets before deducting any costs... For many companies, revenue is made up not only of sales, but also of interest, royalties and other income. For an LLC or for a company with a different legal form, it is the aggregate of all goods and services sold.

For an enterprise, revenue is the basis of the business. It shows the demand for a product or service produced by a given enterprise. The work of most firms is based on obtaining revenue, because, depending on this, the entrepreneur is able to assess the level of demand for a product or service, to resolve issues related to the purchase and production of goods in his favor.

This economic indicator is the final completion of the enterprise, while the calculation of this indicator is carried out by multiplying the price by the number of units of goods sold.

For a company, revenue is the aggregate of all goods and services sold... Formally, revenue is called only periodic income, accounted for according to the corresponding accounting model adopted in a particular company.

The more revenue, the better, the faster the company's shares can grow.

What are the factors that make up?

Differences

Profit and revenue are not the same thing... Distinctive characteristics of profit from revenue:

profit is the total revenue from which the costs of the enterprise are deducted;
unlike revenue, profit can be obtained with a negative result.

The common thing is that these economic values can always be predicted. Taking into account the indicators of the past period, we can assume what the size of the profit will be in the future; one should only take into account the expected costs and changes in the market conditions.

Distinctive feature of revenue from revenue:

the increase in income occurs as a result of the receipt of assets that increase the capital of the organization;
income is an indicator that increases the capital of the enterprise;
capital that arose from payments of founders and owners is not income;
income for the enterprise is possible as a result of the main activity;
income is an indicator of net proceeds from the sale of services, works or goods for various purposes.

At first glance, the income may turn out to be insignificant, although for the accounting of large enterprises and companies these are significantly different indicators from each other, where revenue will always be positive.

Gross profit is the result of the amount of income excluding the associated costs. For trade enterprises, gross profit is the difference between the selling price and the cost price (?). In terms of gross profit margins, it is common to compare the degree of efficiency of different enterprises. - This is a more specific indicator that forms the completed stages from productivity to the sale of goods.

Reasons for the decline and ways to increase

incorrect conclusion or extension of contracts for the supply of products;
violation of the clauses of the contract regarding the volume, range and quality of products, as well as the timing of shipment;
refusal of the customer from the product due to its surplus in the warehouse;
violations in settlement transactions;
incompetent study of consumer demand;
poor quality work and not knowing the sales market;
lack of a safety stock of products;
non-fulfillment of urgent orders;
deliveries to the sale of expired products;
unskilled marketing personnel;
passivity of specialists in the field of market research.

Each enterprise or organization provides... This indicator is formed from:

an increase in the quantity and quality of goods ready for sale;
leasing or selling equipment, tangible assets;
rational use of materials, working areas and capacities;
production of end-to-end control of production diversification;
progression of all indicators in the area of the sales market;
reducing the cost of producing a unit of production;
increasing labor productivity;
reducing losses and costs that are not related to production;
bringing production to a new technological level.

For an example of how to increase your grocery store revenue, see.

How to calculate yourself?

There are 2 ways to independently calculate revenue, which are formed after the fact:

payment for products;
shipment of products.

The first method can be applied if to the current account of the company after the sale of goods or the provision of services from the buyer.

Revenue is considered the multiplication of the number of products sold by the selling price and :

B = Vр * Cr, where:

B - revenue.
Vр - the number of products sold.
Цр - the price of the products sold.

The second method is used if the product was shipped to the buyer and this fact is recorded in the corresponding settlement documents.

Revenue is calculated as the multiplication of the quantity of products shipped by the selling price. and is calculated by the formula:

B = V otgr * Ts otp, where:

B - revenue.
Votgr - the amount of products shipped.
Tsotp - selling price.

Taxation (STS, UTII, with and without VAT)

According to Art. 17 of the Tax Code of the Russian Federation, the taxation system is based on the following elements:

making a profit or income;
determining the tax base;
determination of the amount of tax charges per unit of measurement of the tax base;
the procedure for calculating tax;
the order and timing of tax payment.

This process is governed by the following tax regimes:

Large organizations working with VAT are more profitable to work with suppliers who also pay VAT. This makes it possible, among a number of competitive organizations, to choose the one that applies the simplified tax system under equal conditions.

You can switch to UTII from the general taxation system from any date... With STS - only from the beginning of the year.

How is the accounting of proceeds with and without VAT, read, and described the order of reflection in the statement of financial results.

Reflection in accounting

B is recognized when the following legal and economic conditions are met:

To legally receive revenue, an organization or an enterprise must have the right to do so, which is provided for in a specific contract.
The amount of revenue can be quantified.
There is confidence that, as a result of the operation performed with a product or service, this will be followed by an increase in economic benefits.
The service was provided in a timely manner.
The cost of performing an operation with a product or service can be determined.

In the event that at least one of the above conditions is not met, not revenue will be recognized in accounting, but accounts payable.

On which account the revenue is reflected in the accounting department, read it, and it will tell you how to find the revenue indicator for the month in 1C.

Sale of goods, works, services

In practice, two methods are used to determine the fact of product sales.:

accrual method;
cash method.

The amount of revenue in the production sector is influenced by:

production volume of products;
assortment range;
structure of manufactured products;
quality characteristics of products;
competitiveness in the market;
rhythm of production.

Several factors affect the amount of revenue in the sphere of circulation.:

The proceeds that go to the company's account are used to pay:

invoices for the receipt of raw materials;
materials and semi-finished products;
component parts;

Conclusion

To receive revenue, it is necessary to carry out a systematic analysis to determine the significant factors and criteria that form it. Factoring and the introduction of payment of receivables will help increase the efficiency of revenue collection for businesses that conduct honest business with the buyer.

One of the basic concepts used in economics and business is revenue. It is with this concept that the activities of most enterprises are associated. Depending on the proceeds received, an entrepreneur can assess the demand for a particular product or service, resolve issues related to the production and purchase of goods in his favor. It is believed that it is the size of the profit that determines the success of the enterprise.

Basic definition

It would seem that revenue is the amount received in the course of the sale of goods. But this is far from the case, since it depends on a number of nuances and characteristics. Earlier, the revenue was attributed to one of the, but now there are disputes around this issue. Today it is considered income from the main activities of the company, but at the same time, other areas can be profitable.

The basic definition is that revenue is the aggregate amount of cash received over a period of activity from the sale or provision of services. It can take both a positive value and be equal to zero, but it will never take a negative value.

Receiving revenue is the final stage in the work of any commercial organization. It is the main general indicator of the performance of a company or firm. This indicator is planned in the first place, and on its basis the price of the product and its circulation are set. On the basis of the proceeds, all subsequent types of profit and income are calculated, conclusions are drawn about the demand for a particular product.

In the absence of profit, the company inevitably suffers losses, which ultimately leads to its ruin and closure.

Calculation methods

There are two main methods for calculating revenue. Moreover, each of them has a different concept of revenue:

V cash method this concept means the money received by the seller of the goods from their sale. In fact, this is the amount of payment that the seller received in cash or using a non-cash payment. If the goods are released on a deferred basis, the proceeds are not recorded until the money arrives at the settlement account of the seller or distributor. In this case, all received advances are equated to the proceeds.
Revenue determination method on accrual or shipment ... In it, even those funds that were received in cash, and will also be paid through loans or deferred payments, are considered revenue. This method is often used in large companies.

Revenue types

Revenue from the sale of products and services - funds received for products or services shipped to customers. Revenues of this type are divided into two types:

, which takes into account all the money received for the product or service. In the case of barter payment - the full cost of the exchange agreement. This amount includes not only taxes, but also various fees and duties, which are then paid to the state. The second name for this type of revenue that can be found is net revenue.
Net Is the difference between gross receipts, taxes and excise taxes. It is recorded in the profit and loss statements of the enterprise. Also, net revenue is also called gross revenue. It is she who forms the main income of the enterprise.

Difference between basic concepts and definitions in trade

In actions related to the sale of certain things and products, employees have to operate with such concepts as revenue, income and profit. But you should understand the difference between each of these terms.

Often, net revenue is related to the concept of income. But income is a broader concept. So, income is considered to be an increase in economic benefits from the receipt of various funds and, as a result, an increase in the capital of the organization. But income can have several sources, not only revenue, but also payment of fines, sanctions, interest from the bank. All this creates a profit.

Money for the purchase of goods, taxes, payment of rent for premises, for sellers - expenses. If you subtract this amount from the income received from the sale of goods and services, you can get a profit.

Naturally, revenue significantly affects the income and profit of an enterprise and is one of its main components, but equating revenue with these two concepts is fundamentally wrong.

Revenue components

Revenue consists of two main components:

purchase price , that is, the cost at which the goods were purchased for sale or the material for its manufacture;
added value , that is, the amount that the seller adds to the purchase price in order to make a profit. This amount is often a percentage of the purchase price of the product.

Thus, if you subtract the cost of goods from the proceeds, you can get the amount of income received by the company in the course of its activities.

main sources

Today, revenue can be received from:

main activity - the sale of products, the performance of work or the provision of services. So, for a store it will be the sale of goods, for a legal office - the provision of legal services;
investment activities , which includes working with company shares, securities and even the company's assets that are not involved in the turnover. For example, a large corporation may sell part of its shares in order to obtain investments;
financial activities of the enterprise ... For example, the owner of an enterprise invests money in a particular project in order to make a profit, puts money on a deposit in a bank and others.

If you add up the funds received in these three areas, then in the end you can get the total profit of the enterprise.

For example, profit from operating activities is 920,789 rubles per month, investment activities - 34,000 rubles, financial activities - 265,000, therefore, the total profit for the month will be: 920,789 + 34,000 + 265,000 = 1,219,789 rubles.

In accounting, this concept accepts funds received from the main activities of the company, the rest of the funds are usually called "other income" or "interest income".

Main functions

The main function that the proceeds perform is to reimburse the funds spent by the company on the purchase or production of goods. Its timely receipt on the accounts of the company ensures not only the stability of its work, but also the continuity of the turnover, the activities of the company.

With the help of the proceeds received, invoices of suppliers, both goods and materials, wages, taxes are paid. In addition, the received proceeds can be used for the purchase of a new product or material, expansion of the company's activities.

If the proceeds come with a delay, the company's activities incur losses, since its profit decreases, penalties may be imposed or contractual obligations related to the production of goods, payment of certain bills may be violated.

Revenue calculation

Quite simple formulas are used for calculations. It is enough to know the volume of products sold over a certain period of time and the cost of a unit, then multiply them. Further, the obtained values for each group of goods are summed up. It should be noted that the funds received in the course of the company's activities are not included in the proceeds.

The formula looks like this

TR = P * Q, where

TR - revenue, rubles;

P - price, rubles;

Q - sales volume, unit / piece.

For example, let's calculate the revenue of the Vesna store from the following products:

Tea - 23 packs sold, the cost of each is 105 rubles.
Sugar - 3 kg, 40 rubles each.
Lemon - 1 kg, cost - 200 rubles.
Tea revenue amounted to - 23 * 105 = 2415;
Sugar revenue - 3 * 40 = 120;
Revenue for a lemon - 1 * 200 = 200.

The total revenue of the store for this group of goods was 2415 + 120 + 200 = 2735 rubles.

If the product was sold first at one price, and then its value increased, then the revenue is calculated for each product, depending on its value, and then added up.

For example, at the beginning of January 120 packs of tea were brought to the store "Solnyshko" for 105 rubles, and in February another 76, but with a cost of 110 rubles. At the same time, there are still 20 packs of tea left in the store at the old price.

The remaining 20 packs and 34 packs from the new batch were sold during the month. Thus, the revenue for the sale of tea in February will be: (20 * 105) + (34 * 110) = 2,100 + 3,740 = 5,840 rubles.

The data obtained in the course of calculations is considered information for internal use and is not included in the financial statements.

However, once a quarter or a year, these indicators are calculated by the accountant and recorded in the “Profit and Loss Statement”. In this case, the amount of revenue is indicated without indirect taxes and VAT (see also). Besides , in some cases, the amount received during the sale may not be wholly owned by the company. For example, when selling commission items, the seller receives revenue from the buyer, the bulk of which belongs to the owner of the goods.

For example, the following items were accepted for sale at the Solnyshko commission store with the proviso that the people who provided them or the committers would receive the following amounts:

Children's chair - 450 rubles.
Manege - 890 rubles.
Kangaroo - 500 rubles.

The store sellers also made a 20% mark-up on the goods, that is, the total cost of things was: 540, 1068 and 600 rubles, respectively. After the sale of these things, the profit of the "Solnyshko" store was:

(540 + 1068 + 600) - (450 + 890 + 500) = 2 208 - 1840 = 368 rubles. The remaining amount, according to the previously drawn up agreement, will be received by the committees.

The reports prepared by the accountant are submitted to the company management. Based on them, conclusions are drawn about which goods are in great demand and which ones are in less demand. Therefore, it helps to form the volume of purchases of a particular product.

Video: Revenue and Profit

From the video lesson, you will learn what revenue is and how to calculate its main types: total, average and marginal. In addition, the lesson tells about profit, the main factors of its formation and its influence on the development of the company.

Training is the means obtained in the course of the sale of goods or services. Thanks to the proceeds, it is possible to draw a conclusion about the work of the enterprise, to adjust its activities. A delay in the receipt of proceeds leads to losses of the enterprise, and its absence - to its closure.

Revenue, income and profit: what is what

It is difficult to assess the efficiency of an enterprise, the criteria are chosen differently in each case. But always, both in planning and in the analysis of current activities, financial indicators are used. Among the mandatory are revenue, income and net profit. These concepts are often confused.

Revenue

Revenue refers to funds received for products sold or services rendered. There are 2 ways to reflect revenue:

cash method;
accounting for accrual proceeds.

The cash basis assumes that only money actually received is related to revenue. It shows how much the company is already managing. But the proceeds also include advances on which the company has not yet fulfilled its obligations.

In accrual accounting, revenue is recorded when goods are shipped or a service is provided. In this case, the indicator shows the volume of sales, but does not take into account the fact that the buyer may turn out to be unfair and will not pay for the purchase.

From an accounting point of view, the company's revenue is divided into 2 types:

gross;
clean.

Gross revenue - payment received for a sold product or service. Net revenue is gross revenue minus excise taxes, taxes, duties and taxes, which are directly included in the price of the goods. It is reflected in the obligatory document - the income statement.

The indicator of revenue does not reflect the efficiency of the company, because the revenue is also the case for unprofitable enterprises, but it characterizes the company's share in the market. To calculate this share, you need to know the volume of sales in the industry for the reporting period.

Income

Income includes all receipts, not just those related to the main activities of the company. This includes interest on deposits or levied fines and penalties.

If the revenue is strictly planned, then the income is unplanned, for example, if the partner violated the terms of the contract and paid a penalty.

Profit

Profit is a basic indicator for assessing the work of an enterprise. It is she who is primarily interested in shareholders, because dividends are paid from the profit.

Gross and net

Allocate gross and net income.

Gross profit shows the overall performance of the enterprise. To calculate it, you need to subtract costs from income for a certain period. Banks and the state will also want their share of this "pie". Therefore, the shareholders of the company pay attention to the net profit.

Net income is what the company works for. It is not necessarily fully paid to shareholders. To calculate the net profit, compulsory payments are deducted from the gross profit:

taxes, fees and fines (that part of the "total" profit that is due to the state);
interest payments (goes to financial institutions that issued a loan to the company).

The remaining money is called retained earnings. They are reinvested, that is, directed to the benefit of the company. It is an alternative to a bank loan or other external financing. How much money to give in the form of dividends, and how much to use for development, is decided by the meeting of shareholders.

If the amount of net profit is negative, it is called an uncovered loss. Until the profit covers the losses, the company does not pay income tax.

EBITDA and EBIT

There are 2 more profit indicators that are not indicated in the reporting, but are used in financial modeling, when evaluating projects, and are of interest to investors: EBIT - profit before interest and taxes, and EBITDA - profit before interest, taxes and depreciation.

EBITDA was originally invented to calculate whether a firm can pay off its debts. This parameter, together with the net profit indicator, reflects the amount of payments that the firm will make in the forward period.

It illustrates the income that the company receives in the current period. It is easy to carry over to future periods, so it is used to assess ROI and self-financing opportunities.

EBITDA allows companies to be compared regardless of their type and accounting policies. The comparison is not influenced by the size of investments, lending burden and tax regime.

The main disadvantage of the EBITDA parameter is that it does not take into account that the company will need money to replace equipment due to depreciation. Enterprises that have a large share of their costs spent on amortization (heavy industry, extraction of natural raw materials, construction) try to demonstrate this parameter more often, because this way their forecasted profit is more attractive to investors. Therefore, investors consider EBITDA together with EBIT.

Another disadvantage of EBITDA and EBIT is that the calculation takes into account not only the results of core activities, but also one-time receipts. This makes it difficult to analyze the company. To get rid of such "information noise", other income is deducted in the calculations or an indicator of operating profit is used. This is how the firm's ability to generate cash flow is predicted. But the problem is that these additional operations can cause financial manipulation, and the indicators will eventually turn out to be overestimated or underestimated.

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