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 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, and also how revenue differs from profit, let's look at how revenue and profit are formed.

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

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

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

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

amounts of VAT, excises, export duties and other similar obligatory payments;
amounts under agency agreements, commission agreements and other similar agreements in favor of the committent, principal, etc.;
amounts received in the order of advance payment for goods, works, services;
sums of advances on account of payment for goods, works, services;
deposit;
amounts received as a pledge, if the agreement provides for the transfer of the pledged property to the pledgee;
amounts received as repayment of a loan, a loan granted to a borrower.

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

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

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

The profit of the company is defined as a positive difference between the income received (which includes proceeds from the sale of goods and services, income from the rental of property, interest income, fines received, etc.) and the expenses incurred to obtain 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 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's explain with an example. The organization sold goods for 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:

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

Profit is one of the main performance indicators of a company. The receipt or absence of profit characterizes the activity of the company as successful or unprofitable. The more profit, the better. This means that the enterprise works perfectly, pays off the costs, and, moreover, the entrepreneur who has received a profit can dispose of “free” money: send it to the further development of the company or spend it on personal needs.

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

Before explaining what Profit is, it is necessary to distinguish between 2 concepts: revenue and profit.

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

An individual entrepreneur (IP) Ivanov purchased a batch of Xiaomi mobile phones on the AliExpress website in the amount of 10 pieces, 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 take into account expenses.

The entrepreneur spent 10 * 12,000 = 120,000 rubles on the purchase of phones. These are the COSTS that represent .

Now we subtract costs from revenue: 200,000 - 120,000 \u003d 80,000 rubles - this is the PROFIT received by Ivanov from the operation for the purchase and sale of phones.

This example "on the fingers" helps to understand how they find profit. But there are nuances. Profit is classified into different types and depends on the categories of costs, 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, at its expense, in Article 50 of the Civil Code of the Russian Federation, legal entities are divided into commercial and non-profit organizations.

Profits appear in federal laws about activities production cooperatives, business companies, other business entities, is mentioned in the laws on, 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 activities of the taxpayer is subject to the levy of income tax. Profit is recognized 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.

To clarify: the expenses of the company, which generate profit and are recognized for tax purposes, must satisfy 3 principles:

Be directly related to commercial activities. For example, the Orion company purchased computers for accounting for accounting accounting, for 150 thousand rubles. This amount is rightly included in the firm's expenses. 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.

Expediency of expenses from the economic point of view is necessary. 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 evidence 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 technical means will not be recognized in order to reduce the tax base.

What are the types of profit

Two main approaches to determining profit are used, they find:

book profit,
economic profit.

What is accounting profit

This view is based on the firm's actual accounting data. 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) expenses of the company are taken into account.

Accounting profit = Revenue - accounting (explicit) expenses

These expenses include:

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

The difference from accounting is that costs additionally include alternative (implicit, or internal) costs. These are the costs at which, presumably, the firm could earn a large profit due to 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 economic profit using the following formula:

Economic Profit = Revenue - (External + Internal Costs)

You can also calculate in another way:

Economic profit = Accounting profit - internal (implicit) costs

Here's an example:

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

Let's find profit indicators:

Accounting profit will be equal to: 300,000 - 200,000 \u003d 100,000 rubles.

If Petrov rented out the premises of the workshop, this would bring 40 thousand rubles a month. Working at the plant in his main specialty - a foreman in setting up machine 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 IP Petrov brings more benefits and advantages than the absence of such.

If we assume that the prices for renting out the workshop premises have risen from 40 to 80 thousand rubles a month, and Petrov received an offer with previous work become a foreman of equipment adjusters with an income of 50 thousand rubles, then the economic profit will be: 300,000 - (200 + 80 + 50) \u003d - 30,000 thousand rubles.

A negative indicator reflects the inexpediency of the business, in which case Petrov should have rented out the premises and gone to work as a foreman at the plant.

With negative economic profit, options are considered for repurposing or closing one's own business.

Complementing the analysis of accounting and economic profit is a closely related indicator called "normal profit". This type of income is used in investment activity, to evaluate the effectiveness of investing in a particular business.

Normal profit

About appearance normal profit say when the economic is zero. This equilibrium is reached when the company's total revenue equals total costs.

In the example with IP Petrov, a normal profit will be received with a number of orders in the amount of 265 thousand rubles, while the value of economic profit is zero, and the company's expenses are fully consistent with income. Everything that Petrov earned above this level, and this is 300 thousand - 265 thousand = 35 thousand rubles - is "surplus profit".

The excess over the level of normal profit reflects the positive dynamics of the enterprise. A value below the level of normal profit characterizes the profit as negative, and the company's activity 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 return is less than normal, the investor loses income and may decide to withdraw the funds from the business and redirect them in another 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 receipts and expenses of the company. Let's take a closer look at this classification:

Gross profit

It is an indicator of the return on the production or sale of goods, the provision of services and is directly related to the costs of such operations. This does not take into account the costs of management and marketing, advertising, sales of products (commercial expenses). That is, gross profit reflects the receipts that arose as a result of 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 future 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 enterprise and reflected in the financial statements, namely in the "Profit and Loss Statement".

It is determined by the following formula:

Gross profit \u003d Revenue - Cost

Revenue does not include other income, 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 violations of contractual obligations.

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

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

Yes, in production organization to calculate gross profit, the following costs are included in the cost:

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

In a trading company, the cost price consists of the following items of expenses:

for the purchase of goods for subsequent resale;
for the salary of employees, with deductions to the Pension Fund of the Russian Federation, the Social Insurance Fund, the Compulsory Medical Insurance Fund;
rent payments for the rent of retail space, security.

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

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

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

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

The profit from the sale of products in production is the same as the profit received from sales in a trade enterprise or in the provision of services.

This is a more in-depth indicator than the balance sheet profit, it allows the company's management to evaluate how effective the production or sale of products is, taking into account selling and management costs. The amount of profit from the sale affects the enterprises, that is, the ability to cover current and repay 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

Commercial and management costs included in the general expenses associated with the ordinary activities of the company. Some of them are related to the cost of goods produced or sold.

In fact, in tax legislation and other regulations authorities do not give a specific concept of such costs. There is a generally accepted norm, and each enterprise in its accounting policy, at its discretion, assigns part of the costs to managerial or commercial items of expenditure, then they are reflected in the necessary accounting accounts.

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

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:

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

241 - (8 + 12 + 25 + 15) \u003d 241 - 60 \u003d 181 thousand rubles - amounted to profit from sales.

Profit before tax

This is the value that is the base, or the basis on which income tax is calculated. It represents an interim financial result, 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 retired at the expense of:

provision of the company's assets for temporary disposal;
paid transfer of intellectual property rights;
sale or write-off of fixed assets, not financial assets(except for goods);
interest on loans;
accrual of penalties, penalties for non-fulfillment of contractual obligations;
charity;
other than the main activity.

In our example, for the 1st quarter of 2019, the confectionery received other income from the sale of a dough mixer 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 a tax base for paying income tax.

Net profit

It's free cash remaining at the disposal of the company after all taxes and deductions. Calculating net profit, the accountant summarizes the activities for the reporting period. The result obtained is evaluated by the management and the owner of the business in order to further channel the profits to the development and expansion of production, the purchase of modern machinery and equipment, and the introduction of new technologies. Investors assess their prospects for investing in the company by the amount of net profit. 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 total amount of income of the enterprise for a specific period, taking into account all expenses incurred. At this stage, extraordinary incomes or expenses are added to the previously considered receipts and disposals of funds. These are the consequences of force majeure situations (fires, floods, man-made disasters, terrorist acts), due to which the company incurs losses or receives insurance compensation.

The formula for net profit is:

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 budget of the region at the location of the taxpayer-legal entity. Thus, the Melange confectionery 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 \u003d 384,800 rubles.

balance sheet profit

The balance sheet profit is reflected in the main documents of the organization's financial statements - Form No. 1 "Balance Sheet" and Form No. 2 "Financial Results Statement". It is determined by increasing for 1 quarter, half a year, 9 months, a year. This parameter is evaluated in dynamics, that is, for different periods of time, for example, the indicators of the previous and current years are compared. At the same time, various balance sheet items are analyzed, factors that influenced the decrease in profits are monitored. If the profit plan is not met, 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 = Operating income + Other income – Operating expenses – 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 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 income is called EBIT - Earnings Before Interest and Taxes - literally: earnings before taxes and interest on borrowed funds. Find it like this:

Operating profit (EBIT) = Gross profit - Selling expenses - Management 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 credit obligations is high. If there are none or the percentage of loan payments is insignificant, 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 income is of interest to investors and other stakeholders as an opportunity to evaluate financial condition and company value.

Marginal profit

There is also such a thing as marginal profit. It is equivalent to gross or book profit, but there are differences in economic importance these quantities.

Marginal profit is found as the difference between the company's revenue from its core activities and part of the costs, called variables. These include expenses that directly depend on the volume of manufactured products and are not allocated in Russian accounting as separate category and are included in the cost.

Marginal profit \u003d Revenue from core activities - variable costs(Cost price)

Marginal profit is good because it helps to calculate profit not only in relation to the total volume of goods produced, but also in the context of a particular type of goods or per unit of production.

Marginal profit per unit of production \u003d Selling price of goods (one trade item) - Cost of a unit of goods (one trade item)

For example, in the Melange confectionery they produce cakes and you need to find out which one is the most cost-effective.

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 nomenclature from production or increase the final price for it.

Profit margin is interesting for investors 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 can be external, independent of the enterprise itself, and internal, when a change in the situation within the company can increase or, conversely, reduce business efficiency.

What can be external factors influencing profit

We 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" all savings, the entrepreneur does not have the opportunity for capital investment in production.

Increasing tax rates, changing the preferential taxation policy.

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

Acceptance on state level legislative acts relating to business issues.

For example, the law obliging all entrepreneurs (with some exceptions) to use online cash registers since July 2018. Thus transparency of payments is achieved and immediate receipt of information in tax office. On the other hand, many representatives of small businesses, especially in the regions and on the periphery of the Russian Federation, are not able to financially pull the introduction and maintenance of new technologies, so the small profit of such companies may go into the red.

Change in the cost of raw materials and materials.

It is obvious that 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 the volume of sales, that is, it will negatively affect the size of the company's profit. Conversely, the conclusion of a contract for the supply of affordable raw materials (subject to the quality of resources) will expand production or change the pricing policy of the company. Such measures can attract buyers and increase profits.

market situation.

Profit is influenced by the number of producers and consumers in the market, the possibility of entering the market, high or low in the industry.

This is where creating a unique trade offer. The buyer needs to offer a new interesting product which will be in demand. For example, in the Melange confectionery they bake personalized children's cakes. This idea attracted many mothers to order such cakes for the birthday of their child in this pastry shop.

No less than external factors, the size of profit is also influenced by the situation developing within the enterprise. There are the following internal factors:

Company turnover.

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

Expansion of the commodity nomenclature.

A wide range of products gives the buyer a choice. If you rely on quality and prestige certain types product can attract high-income buyers.

High level of professionalism and quality of service

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

Technical equipment

Modern equipment helps to save time and speeds up the process of product development, which positively affects the company's turnover.

The business reputation of the firm.

If the company has made a name for itself, the owner values business reputation, business partners will be interested in cooperation with this particular company. When the company has established itself with better side, buyers become regular and bring relatives and friends. This increases the demand for products and profits.

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

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

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

1 To find out how the company has fulfilled the profit plan, whether the reality matches expectations. At the beginning of work or at the start of a project, a business plan is drawn up, in which a development forecast is made, costs and profits are calculated, and deadlines for the completion of work are assumed. In the business plan, they try to take into account all possible factors influencing 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 expected, the manager or owner of the business can understand what was done wrong, what decisions are wrong.

2 Determine 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 lead to an increase in 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 evaluation of profit indicators will help you decide in which direction to move forward in order to increase the profitability of the company. For example, if it is revealed that one of the types of products makes little or no profit, this is an occasion for management to think about whether it is necessary to produce this product, is it not better to remove it from production, and use the freed resources to produce products that are more profitable and in demand among buyers.

Profits and taxation

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

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

Income is taken into account:

from the sale of products of 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 the rental of property, property or work (services) received free of charge, exchange differences, and income from previous years.

Expenses accepted for tax purposes include:

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

If the firm did not make a profit, but a loss, then the tax base is considered equal to zero.

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

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

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

Features of taxation at a rate of 0% are disclosed in article 284 of the Tax Code of the Russian Federation.

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

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

Enterprises are required to make monthly or quarterly income tax payments to the budget, the tax for the year is transferred before the end of the 1st quarter of the year following the reporting year. Simultaneously with the payment of the tax, the corresponding tax declaration is also submitted.

Answers on questions

What is the difference between profit and profit

In a general sense, income is all the financial receipts of the enterprise from various operations, including non-manufacturing ones. Whereas revenue is cash received only from the production or sale of goods, that is, from the main activity. Both revenue and income reflect financial influences in the company, while profit is formed taking into account both cash receipts and cash expenditures. Thus, income and revenue serve as the basis for calculating profit, this final measure of the firm's performance.

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

Article 264 of the Tax Code of the Russian Federation states that advanced training courses are included in 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.

Employees of the company spent the weekend 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.

How to correctly attribute the payment for mobile communications to expenses?

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

Remember

Profit is the main component of any business. Without it, the meaning of entrepreneurship is lost, if we do not keep 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 acceptance of incorrect management decisions, not expediency of expenses of material resources and financial assets of the company.
Each owner seeks to achieve economic solvency, freedom to dispose of profits. But for this, you first need to get it, and then learn how to count.
The calculation of business profitability indicators is based on revenue, that is, those incomes received from the sale or production of products, as well as related costs. These expenses must be directly related to the activities of the company, be justified and documented.
There can be a great variety of both income and expenses in a company. Based on these differences, gross, balance sheet, accounting, economic, operating, net and other types of profit are determined.
Each of them can be used by the head of the enterprise, its owners and investors, shareholders of the company. Inspecting and controlling bodies, contractors and partners of the company can understand how effective the business is, how to build a strategy for further development, whether dividends will be high, whether reporting is transparent and whether it is worth maintaining partnerships with this company.
Each entrepreneur is obliged to pay income tax deductions to the budget on time. This is usually 20%, but reduced 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. Properly using the changes and fluctuations of the internal and external environment, the owner or manager of the business can maximize profits.

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

From point of view business case, the definition of revenue is the total amount of money that was 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 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 on the other legal form is the total of all goods and services sold.

For a business, revenue is the backbone 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 receiving 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 sold units of goods.

For a company, revenue is the sum of all goods and services sold.. Formally, revenue is only periodic income accounted for in accordance with the appropriate accounting model adopted in a particular company.

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

What factors are made up of?

Differences

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

profit represents the total revenue from which the costs of the enterprise are deducted;
in contrast to 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, one can assume what the profit will be in the future, one should only take into account the expected costs and changes in market conditions.

Distinctive feature of income 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 has arisen from payments of founders and owners is not income;
income for the enterprise is possible as a result of the implementation of the main activity;
income is an indicator of net proceeds received from the sale of services, works or goods for various purposes.

At first glance, the income may not be significant, although for accounting purposes large enterprises and companies - these are significantly different indicators from each other, where revenue will always be a positive value.

Gross profit is the result of the sum of revenues excluding related costs. For trade enterprises Gross profit is the difference between the selling price and the cost price (?). In terms of gross profit, there is usually a comparison of the degree of efficiency various 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 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 lack of knowledge of the sales market;
lack of safety stock of products;
non-fulfillment of urgent orders;
deliveries to the sale of expired products;
unskilled personnel in the field of marketing;
passivity of specialists in the field of market research.

Every company or organization has. This indicator is formed from:

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;
works 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 output;
increase in labor productivity;
reduce losses and costs that are not related to production;
bringing production to a new technological level.

An example of how to increase revenue in grocery store, you will find in .

How to calculate yourself?

For self-calculation of revenue, there are 2 ways that are formed after the fact:

payment for products;
shipment of products.

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

Revenue is considered to be the multiplication of the number of products sold by the price of its implementation. and :

B=Vr*Tsr, where:

B is revenue.
Vr - the number of products sold.
Tsr - the price of products sold.

The second method is applied if the products were shipped to the buyer and this fact is recorded in the relevant settlement documents.

Revenue is calculated by multiplying the quantity of shipped products by the selling price and is calculated by the formula:

B=V shipment*C shipment, where:

B is revenue.
Votgr - the number of shipped products.
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;
determination of the tax base;
determining the amount of tax charges per unit of measurement of the tax base;
the procedure for calculating the tax;
procedure and terms of tax payment.

This process is regulated by the following tax regimes:

It is more profitable for large organizations working with VAT to work with suppliers who also pay VAT. This allows you to choose among a number of competitive organizations 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 the USN - only from the beginning of the year.

How revenue is accounted for with and without VAT, read, and it is told about the procedure for reflecting it in the income statement.

Reflection in accounting

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

To receive revenue from legal grounds the organization or enterprise must have the right to do so, which is provided for in a specific contract.
The amount of revenue can be determined.
There is confidence that, as a result of a transaction 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 a transaction with a product or service can be determined.

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

On which account the revenue is reflected in the accounting department, read, and it is told 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 affected by:

production volume of products;
product line;
product structure;
quality characteristics of products;
competitiveness in the market;
production rhythm.

Several factors influence the amount of revenue in the sphere of circulation:

The proceeds that are credited 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 obtain revenue, it is necessary to conduct a systematic analysis to determine the significant factors and criteria that form it. Factoring and the introduction of payable receivables will help increase the efficiency of revenue collection for businesses that are honest 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 being the case, since it depends on a number of nuances and characteristics. Previously, revenue was attributed to one of, but now around this issue there are disputes. 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 says: revenue is the total amount of money received for a certain 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.

Receipt of revenue is the final stage in the work of any commercial organization. She is the main general indicator 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 revenue, 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. At the same time, a different concept of revenue is invested in each of them:

AT 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 through a non-cash payment. If the goods are released with a delay, the proceeds are not fixed until the money arrives at the seller's or seller's settlement account. In this case, all advances received are equated to revenue.
Revenue determination method by charge or shipment . In it, even those funds that were received in cash, and will also be paid through credit or deferred payment, are considered revenue. This method is often used in large companies.

Types of revenue

Revenue from the sale of products and services - funds received for the products or services shipped to customers. This type of income is divided into two types:

, which takes into account all the money received for a product or service. In the case of barter payment, the full value 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 of this type of revenue that can be found is net revenue.
Pure is the difference between gross revenue, taxes and excises. It is recorded in the profit and loss statements of the enterprise. Net revenue is also called gross revenue. It is she who forms the main income of the enterprise.

The 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 correlated with the concept of income. But income is a broader concept. Thus, 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 generates 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 make a profit.

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

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. Often this amount is a percentage of the purchase price of the product.

Thus, if the cost of goods is subtracted from the revenue, then you can get the amount of income received by the company in the course of its activities.

main sources

To date, revenue can be received from:

core business – sale of products, performance of works or provision of services. So, for a store it will be the sale of goods, for a law firm it will be the provision of legal services;
investment activity , which includes work with company shares, securities and even company assets that are not involved in the turnover. For example, a large corporation may sell part of its shares in order to obtain investment;
financial activity 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 core 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 \u003d 1,219,789 rubles.

In accounting, under this concept, funds received from the main activities of the company are accepted, while the rest of the funds are usually called “other income” or “interest income”.

Main functions

The main function that revenue performs is the reimbursement of the funds spent by the firm on the purchase or production of goods. Its timely receipt on the company's accounts ensures not only the stability of its work, but also the continuity of trade and the company's activities.

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

If the revenue arrives late, the company's activities incur losses, as its profit decreases, penalties may be imposed or contractual obligations associated with the production of goods, payment of certain bills may be violated.

Revenue calculation

For calculations, fairly simple formulas are used. It is enough to know the volume of products sold for a certain period of time and the unit cost, then multiply them. Further, the obtained values for each group of goods are summarized. It should be noted that the funds received during the operation of the enterprise are not included in the revenue.

The formula looks like this

TR = P * Q, where

TR – revenue, rub.;

P – price, rub.;

Q - sales volume, unit/pc.

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

Tea - sold 23 packages, the cost of each - 105 rubles.
Sugar - 3 kg, 40 rubles each.
Lemon - 1 kg, cost - 200 rubles.
The revenue for tea was - 23*105 = 2415;
Revenue for sugar - 3 * 40 \u003d 120;
Revenue per lemon - 1*200=200.

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

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

For example, in early January, 120 packs of tea were brought to the Solnyshko store for 105 rubles each, and in February another 76, but with a cost of 110 rubles. At the same time, the store still has 20 packs of tea at the old cost.

During the month, the remaining 20 packs and 34 packs from the new batch were sold. Thus, the proceeds from the sale of tea in February will be: (20 * 105) + (34 * 110) \u003d 2,100 + 3,740 \u003d 5,840 rubles.

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

However, once a quarter or a year, these indicators are calculated by an 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 thrift store with the proviso that the people who provided them or the consignors would receive the following amounts:

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

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

(540 + 1068 + 600) - (450 + 890 + 500) \u003d 2 208 - 1840 \u003d 368 rubles. The remaining amount, according to the previously drawn up agreement, will be received by the committents.

The reports prepared by the accountant are submitted to the management of the company. On their basis, conclusions are drawn about which goods are in great demand, and which are less. 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 talks about profit, the main factors of its formation and its impact on the development of the company.

Learning is the funds received in the course of the sale of goods or services. Thanks to the revenue, you can draw a conclusion about the work of the enterprise, adjust its activities. A delay in the receipt of revenue leads to losses for the enterprise, and its absence leads to its closure.

Revenue, income and profit: what is what

It is difficult to assess the effectiveness 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 ones are revenue, income and net profit. These concepts are often confused.

Revenue

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

cash method;
revenue accounting.

The cash method assumes that only the money actually received is included in revenue. It shows how much the company already manages. But revenue also includes advances for which the company has not yet fulfilled its obligations.

In accrual accounting, revenue is recorded at the time the goods are shipped or the 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 be dishonest and will not pay for the purchase.

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

gross;
clean.

Gross revenue - payment received for goods sold or a service. Net revenue is the gross revenue minus excises, taxes, fees and duties directly included in the price of the goods. It is reflected in a mandatory document - a profit and loss statement.

The revenue indicator does not reflect the efficiency of the company's work, because revenue can also be found in unprofitable enterprises, but it characterizes the company's market share. To calculate this share, you need to know the sales volumes 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 fines and penalties charged.

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 the basic indicator for assessing the performance of an enterprise. It is she who is primarily interested in shareholders, because dividends are paid out of profits.

Gross and net

Allocate gross and net profit.

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

Net profit is what the company works for. It is not necessarily paid in full to shareholders. To calculate net profit, mandatory payments are subtracted from 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. This 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 spend on development, is decided by the meeting of shareholders.

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

EBITDA and EBIT

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

The EBITDA parameter was originally devised to calculate whether a firm can repay debts. This parameter, together with the net income indicator, reflects the amount of payments that the firm will make in the term 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 the return on investment and the possibility of self-financing.

EBITDA allows companies to be compared regardless of type and accounting policy. The comparison is not affected by the size of the investment, the credit burden and the taxation 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 with a large share of costs spent on depreciation (heavy industry, extraction of natural raw materials, construction) try to demonstrate this parameter more often, because their predicted 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 operating profit is used. This is how the firm's ability to generate cash flow is predicted. But the problem is that these additional transactions can cause financial manipulation, and the figures will eventually turn out to be too high or too low.

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