Profit of the enterprise: distribution and use of profit. Formation and accounting of profit

Profit is the most desirable thing for any enterprise. But for prosperity, it should not only be received, but also reasonably spent. Therefore, the profit of the enterprise, the distribution and use of profit, we will consider in the framework of this article.

general information

What is the main property that the company profits from within the company ? The distribution and use of profit must ensure the financial resources of reproduction needs by setting the optimal balance between funds, that accumulation and consumption are directed. In this case, special attention is paid to the state of the competitive environment. It must always be considered. After all, the state of the competitive environment can have a significant impact in terms of production capacity, its expansion and renewal. Based on a number of factors, a decision is made about how the formation, distribution and use of profit will take place. Whether the funds will go to finance capital investments, increase working capital, provide research and development, introduce new technologies or something else - is decided during this process.

What is profit itself?

This is the name of the monetary expression of savings, which are created by enterprises regardless of their form of ownership. Due to profits, the financial result of the company's activity is characterized. It is an indicator by means of which the efficiency of production, the quality and volume of the products created, the level of prime cost and labor efficiency are reflected most fully. Thanks to all this, profit is one of the main economic and financial indicators of the plan on which the assessment of the economic activity of the subject is based. It is thanks to the profits that activities are financed on the socio-economic and scientific and technical development of the enterprise and the payroll of workers is increasing. At the same time, it is not only a source to meet the company's existing on-farm needs, but also has a significant influence in the formation of outside / budget resources and charitable foundations. The profit of the enterprise is the money that remains after deducting the cost of processes and taxes.

Specificity

In the existing market relations, each enterprise tries to get the maximum possible profit. At the same time, it should not only be able to firmly hold the sale of its products in the market, but also ensure dynamic development in a competitive environment. Therefore, before you start to produce or provide something, you first study what sales profit can be obtained. An analysis of the potential market is carried out and it is determined how well the task can be achieved. After all, making profit is the main goal of entrepreneurship, the end result of this type of activity. An important task, which is solved in this case, is to obtain the largest revenues at the minimum cost. This is achieved through a strict economy regime in the matter of spending and the constant desire to optimize their spending. At the same time, the main source of cash savings is revenue from the sale of goods or services (or more precisely, the part that remains after deducting the amount that is spent on production and sale).

An important aspect

When the profit is distributed from the activity, then it is divided into the consumed and capitalized parts. This moment can be focused on the constituent documents, the interest of the founders or depend on the chosen development strategy of the company. Each organizational and legal form of the enterprise has a legally established mechanism for the allocation of funds, which remained at the disposal of the entity. Its features depend on the internal device, as well as the specifics of the regulation of the company's activities. It should be noted that the state can not directly influence how the profit of the enterprise will be spent. The distribution and use of profits can only be stimulated by certain tax benefits. So, most often in this spirit they talk about innovations, charity, nature protection measures, capital investments and the like.

Balance sheet profit of the enterprise

It is the object of distribution in any enterprise. This is understood as the direction of profit on certain items for use for specific purposes. Legislation stipulates that part of the profits should go to the budget of the state or local bodies under the guise of taxes or other mandatory payments. Everything else is left to the company itself. So, the enterprise itself decides where to send it most of the profit from sales. The order of distribution of profit and its use is prescribed in the founding documents and certain provisions that are developed by economic and financial services and approved by the manager (owners) or the governing body of the enterprise. How does this process happen? It is better to deal with it, we help to review the current situation at the moment.

What is the basis for the distribution of profits?

This process reflects the order and direction of using the funds and is determined by the legislation, objectives and objectives of the enterprise, as well as the interests of its founders (owners). Own profit is spent proceeding from such principles:

1. The obligations taken to the state must be fulfilled.
2. It is necessary to ensure the material interest of employees in the process of achieving the best results with minimal expenditure;
3. We must take care of the accumulation of own capital, through which the process of continuous expansion of business will be ensured;
4. It is necessary to carry out the undertaken obligations to founders, creditors, investors and other persons.

Example of profit distribution

Now that we have paid attention to the principles on which the process under consideration is based, let's consider the situation with a limited liability company. In this case, taxation and distribution of funds are carried out in a general manner, which is established for legal entities. So, a part of the funds can be directed to the reserve fund, which, according to the law on a limited liability company, must be formed for the timely fulfillment of the obligations assumed. In the event that one of the founders wants to withdraw their contribution, all of these funds will be paid. In addition, there are accumulation and consumption funds. The first includes the means that in the future will go to the development of the company and various investment projects. That is, profit management provides for the allocation of individual amounts to these areas, which accumulate until the time when the required amount of money. The consumption fund deals with social development, material encouragement and pays to founders certain amounts, proportional to earnings and their contributions.

Economic essence

So, we have already considered the profit of the enterprise, the distribution and use of profits in general terms. Now let's pay attention to the theoretical aspects of this topic. So, if we talk about the level of the enterprise, then in terms of commodity-money relations, the net income here is a form of profit. Having established the prices for their products, companies begin to sell it to consumers. At the same time they receive cash proceeds. But this does not necessarily mean profit. To determine the financial results, it is necessary to compare the revenue with the expenses for the production of goods or the provision of services and the amounts for their implementation. Together they take the form of a cost price. And what to do with these indicators? When the proceeds are higher than the cost, then we can say that the financial result confirms the receipt of profit. It should be noted again that it is always the goal for the entrepreneur. But its receipt is not guaranteed. So, if the revenue and prime cost are equal, then only expenses were repaid. In such cases, production, scientific, technical and social development stops. If the expenditure exceeds the revenue, then the enterprise incurs losses. This suggests that he will have a negative financial result a difficult situation, which does not exclude even bankruptcy. At the same time, there are various factors of profit that can be said on the final state of affairs. First of all, you should concentrate on the fact that you need to realize profitable products. Also a prerequisite is that the price of goods and services should be higher than the cost price.

What functions does the profit?

As a category of market relations it is:

1. Characterizes the economic effect that was obtained as a result of the activities of the enterprise.
2. Performs a stimulating effect. In other words, it is both the main element of financial resources in the enterprise, and the indicator of effectiveness. This aspect is a very good illustration of the principle of self-financing, the amount of implementation of which depends on the amounts received.
3. Profit serves as a source of budgets of different levels.

What else can you say?

Separately it is worth noting that economic and accounting profits are distinguished. Under the first, the difference is between the revenue received and the cost of production. Accounting profit is slightly different. It is understood as the difference between total revenue and only external costs. It should also be noted that in accounting practice there are also slightly different approaches to the analysis of economic activity, in which different types of profit are used: balance sheet, taxable, net, and so on.

Distribution and use

The amount of profit can be different, but the schemes are repeated at different enterprises. The distribution and use of monetary sums is an important economic process that provides coverage for the needs of the people who created the enterprise and form the state's revenues. The mechanism for allocating funds should be structured in such a way that it will in every way contribute to maximizing the efficiency of production and sales. The distribution object is the balance profit. It is sent to the budget and goes to specific articles of use.

What principles of profit distribution exist?

So, our article is already coming to its logical conclusion. Accounting for the distribution of profits is simply impossible without looking at certain principles and without violations of the law. So:

1. The profit received by the enterprise as a consequence of its production, economic and / or financial activities is distributed between the company and the state.
2. In the budget revenues come in the form of fees and taxes. Bets can not be arbitrarily changed. Their list, the procedure for charging and transfer is established by law.
3. The amount of profit that the enterprise retains after paying taxes should not reduce its interest in improving the conduct of business.

From what remains after payment of mandatory payments, fines and penalties may be collected in case of violation of the law. And it should be remembered that the profit that remains at the disposal of the enterprise itself is used as it wishes. Neither the state nor individual bodies have the right to interfere in this process and at least somehow influence it. The only acceptable option is to create conditions for the entrepreneur through the provision of tax benefits. Then the profits from sales will be directed to what is beneficial to the state.