How do profit and income of an enterprise differ from revenue?

A family is defined by its common household. Each family purchases certain items and repairs their property. Sometimes, on the contrary, he sells his very property in order to provide himself with financial resources. Also, older family members get jobs to earn those same resources. All this is done to maintain the common household of the family. This article will consider a financial resource. A family's financial resources consist of income and expenses. The emphasis will be on family income, its types and examples.

Family budget

So, in order. Such a thing as a family budget is a financial plan for a social unit for a specific period of time. As a rule, the family budget is presented by items of family income and expenses.

Maintaining a family budget is necessary, first of all, in order to control where the money comes from and where it then goes. Otherwise, without tracking these things, you can become a hostage to a financial hole, because money, like any other resource, requires rational use.

The main task of the family budget is to correctly distribute income among expense items so that expenses do not exceed family income.

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What does a decrease in net profit mean?

As a rule, a decrease in net profit indicates that the sales system, management or other factors are not working correctly and require improvement. The process of declining profits was discussed in detail by Karl Marx. He believed that over time, the income of any company would decrease. This happens regardless of the area or method of doing business.

The main reason for the decline in profits is that companies are actively introducing new technologies, but at the same time saving on personnel. Marx believed that employees are the main engine for increasing profits.

To clarify the reasons, you can calculate the net profit ratio using the formula:

Net Profit Ratio = Net Profit/Sales x 100

This indicator is used to analyze the profitability of sales, the financial condition of the company and the effectiveness of the management system used. If the coefficient is reduced, it is necessary to develop measures to optimize business processes.

General definition of family income

Family income represents all the money received by family members from various sources. As well as material values ​​obtained from any activity. Income, as a rule, is that part of the budget that should be in positive territory, that is, income should not exceed expenses so that the family can continue its activities without any difficulties. Family income is characterized by the following list of its constituent items:

• prepaid expense;
• alimony;
• tax refund;
• grant;
• dividends;
• business income;
• salary;
• pension;
• present;
• help from parents/spouse/children;
• bonus;
• break-in;
• interest on deposit;
• social benefit;
• scholarship.

Revenue

Revenue is the income that is generated by the direct activities of the enterprise (from the sale of goods or is used only in entrepreneurship and business and characterizes the degree of efficiency of the company. It is revenue that is reflected in accounting.

The company's revenue is accounted for in the following ways:

• cash method. Revenue is determined by the actual money received by the seller when selling a product or providing a service. If an installment plan is provided, the proceeds will be received by the entrepreneur after the actual payment is made;
• accrual method. When using this method, revenue is recognized when the contract is signed or when the buyer receives the goods, even if payment occurs later. This type of revenue does not include advance payments.

The company's revenue can be:

1. Gross, that is, the total payment received for a product or work.
2. Net, used in accounting and consisting of the difference between gross revenue and indirect taxes (VAT), excise taxes, duties, etc.

The total revenue of the business entity is:

• revenue received as a result of core activities;
• investment proceeds (sale of securities);
• financial income.

Types of family income

The next question is varieties. Family income, depending on the life activity, employment and working capacity of family members, can be represented by two types of income. These are fixed and variable income. Economic types of families also differ depending on the type of income. Their budgets are more or less vulnerable to various economic phenomena. Also, the type of family income determines how much their nominal income will differ from the real family income.

Variable income is defined as income that varies depending on the scale of economic activity, and is also defined as random income that was not initially planned to be received. Typically, variable income families are those whose members work in industries that do not pay fixed rates.

Or they are entrepreneurs, representatives of the creative intelligentsia. We can say that it is easier for families with a variable type of income to manage the size of their income, since it depends only on their work activity, and nothing else. It is easier for them to control their income.

Profit is an indicator of the efficiency of any company

If a company does not make a profit, then it operates at a loss, and vice versa, when there is a lot of profit, then we can say that the enterprise is operating successfully and can manage its “free” money at its own discretion.

When an entrepreneur has free money, he can lend it at interest. Our company works with such investors, offering them borrower clients. We provide mediation between the two parties and facilitate the successful conclusion of loan agreements. Loans are secured by real estate.

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We also recommend that you carefully read the site materials on the topic:.

Fixed income

Fixed family income is that income that does not depend on the level of work involvement of family members. As a rule, these are family members such as disabled people, pensioners, and the unemployed. A fixed income is something that, in any case, always ends up in the family budget. It is this part of the income that is defined as the very minimum budget that is distributed to necessary expenses related to primary needs in the first place.

It is also worth noting that it is this part that is most vulnerable to the phenomenon of inflation, which may affect the entire family budget as a whole. Families with a fixed income, as a rule, are always at risk of becoming victims of that same inflation, since controlling the fall in their real income does not depend on the work activity of family members.

Contribution of disposable income to national

To contents

The disposable income of each citizen depends on how able-bodied he is, how healthy he is, what lifestyle he leads and what social class he belongs to: status is important for many people. Income level influences the ability to live in accordance with one’s own ideas about values ​​and satisfy needs and interests.

Fact! Uneven redistribution of national income leads to the fact that socially disadvantaged people do not have enough resources for a normal quality of life. In this case, the government, at the expense of the state budget, and businessmen, at the expense of their own profits, have to replenish the finances of citizens, helping to increase disposable income.

To ensure stability of consumption, which is extremely important for the economy, methods of accumulating funds and distributing them using special funds are used. Surpluses accumulated in favorable times are redistributed and spent in less “fat” years. Such an economic policy allows us to maintain a good standard of living for the population.

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Types of fixed income

A fixed income is the foundation of any family's budget. Since these are the funds that in any case go to the budget. We can say that a fixed income lays down the minimum for the family budget, while variable income can supplement this minimum from time to time. Examples of fixed income include the following:

• Scholarship.
• Salaries of workers in industries where their work is paid strictly in accordance with fixed rates.
• Benefit.
• Social payments.
• Pension.
• Alimony.

That is, fixed income is everything that has a strictly designated payment amount and is received regularly.

Additional formulas for calculating gross income from sales of goods

1. Formula for calculating gross income based on total turnover:

Inhalation = STov × RNats / 100,

Where:

RNats is the estimated trade margin, which is calculated according to the formula:

RNat = Tovn / (100 + Tovn),

Where:

Tovn - trade markup (%)

The formula for calculating gross income based on total turnover is used provided that all groups of commodity values ​​have the same markup percentage. If its size changed during the billing period, it is more advisable to use other formulas.

2. Formula for calculating gross income for the assortment of remaining product values:

Inhalation = (Tno + Tnp – Tnv) – Tnk ,

Where:

TNK - markup at the end of the billing period (credit balance of account 42).

3. Formula for calculating gross income for the range of goods sold:

Inhalation = (STov1 × Medium1 + STov2 × Medium2….. STovN × MediumN) / 100,

Where:

STov(1...N) - trade turnover for a certain group of goods;

Average (1...N) - the average percentage of markup for each group of commodity values.

This method of determining the amount of gross income is used subject to keeping records of commodity values ​​by groups of goods with the same markup percentage.

How does fixed income work? Its role in the budget

As mentioned above, a fixed income is what determines the minimum family budget; therefore, the share of expenses to satisfy the needs of family members depends on the size of the fixed income, and their quality of life depends. And the negative impact of such a phenomenon as inflation is due to the fact that rising prices and, as a consequence, a fall in purchasing power depreciate the value of these same fixed incomes of working family members. This can cause a huge difference between nominal and real family income.

Besides. It is true here that fixed income is nothing more than a reflection of the overall picture of the country’s economy as a whole. Because if meeting the needs of families with a fixed income is limited to only primitive material requests, such as paying utility bills and purchasing food, in other words, requests that only help maintain one level of family living without further prospects for increasing it, and not about any spiritual and cultural needs are out of the question, then the inflation rate is so high and hits citizens’ pockets that they have difficulty balancing expenses with real income.

We calculate net profit

There is some free money left, the accountant sums it up. Management evaluates the results and plans where to allocate this money. Net profit is also assessed by potential investors. They decide how solvent and promising the enterprise is. If profits are high, banks are more willing to lend.

When calculating net profit, emergency situations are taken into account. For example, a natural disaster may occur, causing additional costs. Therefore, the formula for calculating net profit is:

PE = profit from taxation - extraordinary revenues - extraordinary expenses - tax.

Factors that can affect profit

As you can see, it is important to be able to calculate profits in order to determine reserves for further growth, check the implementation of the plan and adjust the company’s development strategy.

How to calculate

Calculation of gross income is carried out in several stages. So, you need to do the following:

1. First, you need to calculate your total gross income. To do this, you need to subtract direct income from cash receipts from core activities.
2. Determine the full cost of manufactured products for the period (if necessary, take into account
3. Find the product of the number of units of goods (services) and the cost of their sale. All other components of gross income are added to the resulting indicator.