The mechanism of influence of finance on the economy, on its economic efficiency, is not in production itself, but in distributed monetary relations. The nature of their impact on production depends on how specific the distribution system is, the forms and methods of its organization correspond to the objective needs of society, the level of development of production, the economic interests of the state, the enterprise and each individual worker. If this correspondence is violated, the process of increasing production efficiency begins to be hampered.

The distribution of profit is an integral and inextricable part of the general system of distribution relations and, perhaps, on a par with the distribution of income of individuals, the most important.

Specific forms and methods of profit distribution are constantly changing and developing with the growth of social production.

The object of distribution is the total (balance sheet) profit of the enterprise. The total profit of an enterprise synthesizes all the diverse results of its economic and financial activities. When distributing and using it, multiple regulations based on the Income and Profits Tax Law, the Enterprise Law, the Joint Stock Company Law and other regulations must be taken into account.

The distribution of profits is understood as directing it to generate state budget revenues and satisfy the needs of enterprises for funds to expand production and provide material incentives to workers.

The distribution of profits is legally regulated in that part of it that goes to budgets of different levels in the form of taxes and other obligatory payments. Determining the directions of expenses of the profit remaining at the disposal of the enterprise, the structure of the items of its use is within the competence of the enterprise.

The principles of profit distribution can be formulated as follows:

– profit received by an enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise as an economic entity;

– profit for the state goes to the relevant budgets in the form of taxes and fees, the rates of which cannot be arbitrarily changed. The composition and rates of taxes, the procedure for their calculation and contributions to the budget are established by law;

– the amount of the enterprise’s profit remaining at its disposal after paying taxes should not reduce its interest in increasing production volumes and improving the results of production, economic and financial activities;

– the profit remaining at the disposal of the enterprise is primarily directed to accumulation, ensuring its further development, and only the rest - to consumption (Fig. 6.19).

Rice. 6.19. Distribution of the organization's total profit

The optimal distribution and effective use of profits is important for expanding and increasing the property of enterprises, strengthening economic accounting, strengthening the material interest of workers in fulfilling plans for financial and economic activities and increasing business efficiency.

The share of profit transferred by business entities to the budget for national needs is determined by the current tax legislation.

From the profit of the enterprise they pay:

- property tax,

– income tax

– and local taxes.

The object of taxation is taxable profit, calculated on the basis of the amount of profit from the sale of goods (work, services), other assets (including fixed assets, inventory, intangible assets), property rights and income from non-sales operations, reduced by the amount of expenses for these operations.

When determining taxable profits, the following are not taken into account:

Profit received from dividends and income equivalent to them, subject to income tax, defined as the difference between accrued dividends and income equivalent to them and income tax;

Profit (loss) from lottery activities;

• profit (loss) received from the gambling business;
• profit (loss) received from the sale (redemption) of securities.

The procedure for distributing and using the profit of an enterprise is fixed in its charter and is determined by regulations, which are developed by the relevant economic services and approved by the governing body of the enterprise.

In an enterprise, profit after taxes and dividends is subject to distribution. Some taxes are also paid from this profit to local budgets and economic sanctions are collected.

The distribution of this part of the profit reflects the process of forming funds and reserves of the enterprise to finance the needs of production and social development.

In a market economy, the state does not interfere in the process of distribution of profits remaining at the disposal of the enterprise after paying taxes. However, by providing tax incentives, it stimulates the use of profits for capital investments and housing construction, for charitable purposes, financing of environmental protection measures, expenses for the maintenance of social facilities and institutions, and for carrying out research work. The minimum amount of reserve capital for joint-stock companies is established by law, and the procedure for creating a reserve for doubtful debts and for the depreciation of securities is regulated.

In accordance with the charter of the enterprise, accumulation and consumption funds are formed, as well as reserve funds intended to finance unforeseen expenses and ensure the financial stability of the enterprise (Fig. 6.20).

Rice. 6.20. Distribution of net profit among target funds

The funds from these funds have a strictly designated purpose. Their use occurs on the basis of cost estimates, which are developed by the financial service of the enterprise and approved in the prescribed manner. If funds are not created, then in order to ensure plans for the disposal of funds, cost estimates are drawn up for the development of production, the social needs of the workforce, material incentives for workers and charitable purposes.

The funds from the accumulation fund are intended to finance expenses related to the scientific, technical and social development of the team.

The funds from the consumption fund are used for one-time incentives for distinguished employees when performing particularly important tasks; providing one-time assistance; construction and major repairs of residential buildings, kindergartens; subsidies for food in canteens; for food in kindergarten, health camp for schoolchildren; improvement of cultural and welfare services for workers and other similar activities.

Reserve funds (capital) are formed both due to legal requirements and by decision of enterprises. By law, the reserve fund is formed by foreign enterprises and enterprises with foreign investments.

All profit remaining at the disposal of the enterprise is divided into two parts. The first part increases the property of the enterprise and participates in the accumulation process, the second characterizes the share of profits used for consumption. At the same time, it is not necessary to use all the profit aimed at accumulation. The remainder of the profit not used to increase property has a reserve value and can be used in subsequent years to cover possible losses and finance various costs (Fig. 6.21).

Rice. 6.21. Distribution of the organization's profits

Retained earnings in a broad sense - both profit used for accumulation and retained earnings from previous years indicate the financial stability of the enterprise and the availability of sources for subsequent development.

The distribution and use of profits by non-state owned enterprises have their own characteristics, determined by the organizational and legal form of these enterprises.

For state enterprises, the ratio between these two parts is established by departmental acts in the proportion of 60:40. For non-state enterprises, proportions are not regulated, but compliance with them is important to ensure stable business development.

S. NIKITINA
Consulting group RUNA

According to the Chart of Accounts for accounting the financial and economic activities of organizations and instructions for its application, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n, the indicators “net profit” and “retained profit” are formed on different accounting accounts.

The net profit indicator is formed on balance sheet account 99 “Profits and losses” by the end of the reporting year and represents the final financial result of the organization’s activities for the reporting period.

The possibility of writing off any expenses at the expense of net profit, except for those determined by regulatory acts on accounting, is not provided.

Thus, in addition to profit and loss from ordinary activities and other income and expenses, only expenses incurred by the organization due to emergency circumstances (natural disaster, fire, accident, flood, etc.) accrued can be reflected in the debit of account 99 payments of corporate income tax, as well as the amount of tax penalties due.

The amount of net profit of the reporting year is written off with the final turnover of December by recording:

Debit 99 “Profits and losses”, Credit 84 “Retained earnings (uncovered loss)”.

Balance sheet account 84 is intended to summarize information about the presence and movement of the amount of retained earnings (uncovered loss).

In accordance with the letter of the Ministry of Finance of Russia dated August 23, 2002 No. 04-02-06/3/60, retained earnings from previous years represent the remainder of the profit remaining at the disposal of the organization based on the results of work for the last reporting year and decisions made on its use (direction into reserves formed in accordance with legislation or constituent documents, to cover losses, to pay dividends, etc.). Based on this, net profit is formed on the organization’s balance sheet only at the end of the current (reporting) year, i.e. We are talking about reflecting the organization’s operations in the accounting accounts for the current period.

Analytical accounting for account 84 should be organized in such a way as to ensure the generation of information on the areas of use of funds.

According to current legislation, the net profit of an organization can be used for contributions to reserve capital, for the payment of dividends, for the capitalization of the organization, as well as for other payments by decision of the shareholders (founders) of the organization.

Contributions to reserve capital

Joint-stock companies form reserve capital in the amount provided for by the company's charter, but not less than 5% of the authorized capital.

The company's reserve capital is formed through mandatory annual contributions until it reaches the amount established by the company's charter. The amount of annual contributions is provided for by the company's charter, but cannot be less than 5% of net profit until the amount established by the company's charter is reached.

Article 30 of the Federal Law of February 8, 1998 No. 14-FZ “On Limited Liability Companies” (hereinafter referred to as Law No. 14-FZ) gives a limited liability company the right to create a reserve fund and other funds in the manner and amounts provided for by the charter of the company . The procedure for using the reserve fund is determined by the supreme management body of the company.

In limited liability companies, the creation of a reserve fund, unlike joint stock companies, is voluntary. Thus, when approving the charter, the founders express in advance their consent to allocate part of the profit to the formation of reserve capital. No further decision is required in this regard. Therefore, we can conclude that directing profits to form a reserve fund is a mandatory procedure that does not require a decision from the owners.

According to the Chart of Accounts, contributions to reserve capital from profits are reflected in the credit of account 82 “Reserve capital” in correspondence with the debit of account 84.

Dividend payment

In accordance with paragraph 1 of Art. 43 of the Tax Code of the Russian Federation, a dividend is any income received by a shareholder (participant) from an organization during the distribution of profits remaining after taxation (including in the form of interest on preferred shares) on shares (stakes) owned by the shareholder (participant) in proportion to the shares of shareholders (participants) in the authorized (share) capital of this organization.

According to paragraphs. 11 clause 1 art. 48 of Law No. 208-FZ (as amended on October 31, 2002, No. 134-FZ), the distribution of profits (including the payment (declaration) of dividends) falls within the competence of the general meeting of shareholders, and in accordance with clause 1 of Art. 47 of this Law, issues provided for in this subparagraph must be resolved at the annual meeting of shareholders, which is held within the time limits established by the company’s charter, but no earlier than two months and no later than six months after the end of the financial year.

A joint stock company has the right to make decisions not only on the payment of dividends based on the results of the financial year, but also on the payment of interim dividends based on the results of the first quarter, half of the year, nine months of the financial year (clause 1 of Article 42 of Law No. 208-FZ). Such a decision may be made within three months after the end of the relevant period.

Based on Art. 33 of Law No. 14-FZ, approval of annual reports and annual balance sheets, as well as making a decision on the distribution of the company’s net profit among the company’s participants falls within the competence of the general meeting of the company’s participants. According to Art. 28 of Law No. 14-FZ, a company has the right to make a decision quarterly, once every six months or once a year on the distribution of its net profit among the participants of the company. The decision to determine the part of the profit distributed among the company's participants is made by their general meeting, which must be held no earlier than two months and no later than four months after the end of the financial year (Article 34 of Law No. 14-FZ).

Thus, the legislation establishes strict deadlines for the distribution of net profit, including the accrual of dividends. The use of retained earnings to pay dividends is legal if the corresponding decision is made by the general meeting of shareholders (participants) within the time limits established by law.

Retained earnings from previous years cannot be used to pay dividends.

Considering that the source of payment of dividends is the company’s profit after tax (net profit), which is determined according to the financial statements, dividends in a joint-stock company can be accrued and paid only from the net profit of the joint-stock company for the reporting year. This point of view is reflected in the letter of the Ministry of Finance of Russia dated August 23, 2002 No. 04-02-06/3/60.

This procedure for distributing net profit amounts for the payment of dividends is confirmed by arbitration practice. In paragraph 15 of the section “Disputes related to the payment of dividends” of the resolution of the plenum of the Supreme Arbitration Court of the Russian Federation dated November 18, 2003 No. 19 “On some issues of application of the Federal Law “On Joint Stock Companies”” it is explained that the decision on the payment (declaration) of dividends , including the amount of the dividend and the form of its payment, is adopted by the general meeting of shareholders for shares of each category (type), including preferred ones, in accordance with the recommendations of the board of directors (supervisory board) of the company. In the absence of a decision to declare dividends, the company does not have the right to pay, and shareholders do not have the right to demand their payment.

Dividends, the decision on payment (declaration) of which was made by the general meeting of shareholders, are subject to payment within the period determined by the charter of the company or the decision of the general meeting of shareholders. If such a period is not defined by the charter, it should not exceed 60 days, including when it is established by a decision of the general meeting (clause 16 of the resolution of the plenum of the Supreme Arbitration Court of the Russian Federation dated November 18, 2003, No. 19).

The allocation of part of the profit of the reporting year to the payment of income to the founders (participants) of the joint-stock company based on the results of approval of the annual financial statements is reflected in the debit of account 84 and the credit of account 70 “Settlements with personnel for wages” or 75 “Settlements with founders”.

Despite the fact that according to the Chart of Accounts, when paying interim dividends, an entry is also provided for the debit of account 84 and the credit of accounts 75 and 70, in our opinion, such an entry is incorrect and should not be used this year.

According to the Tax Code of the Russian Federation, dividends are recognized as amounts of distributed profit, regardless of whether the profit is distributed at the end of the year or before its end. The only requirement is that it must be net profit, i.e. profit remaining after taxation.

However, as already indicated, after the decision by the general meeting of shareholders (founders) to approve the annual reporting and distribution of profits and until the end of the current year, the organization reflects in account 84 not net, but retained profit, i.e. one that is not subject to distribution. And in accordance with paragraph 2 of Art. 42 of Law No. 208-FZ, the source of dividend payment is the company’s profit after taxation (the company’s net profit). Dividends on preferred shares of certain types can also be paid from special company funds previously formed for these purposes. The company's net profit is determined according to the company's financial statements and, until the end of the financial year, is reflected in the financial statements by comparing credit and debit turnover on account 99.

In our opinion, it is advisable to reflect the accrual of interim dividends during the year by writing: Debit 99, Credit 75. In the Profit and Loss Statement, accrued interim dividends should be reflected with a minus sign (in parentheses) after the line “Current income tax”.

Taking into account the requirement of prudence in maintaining accounting records, i.e.

greater readiness to recognize expenses and liabilities in accounting than possible income and assets, without allowing the creation of hidden reserves (clause 7 of the accounting regulations “Accounting Policy of the Organization” (PBU 1/98), approved by order of the Ministry of Finance of Russia dated December 9, 1998 No. 60n), making a decision to pay dividends more frequently than once a year may lead to negative tax consequences. For example, a situation is possible in which an organization that paid dividends based on the results of the first quarter of 2004 from the profit generated during this period may receive a loss based on the results of work for this year.

It should be taken into account that from January 1, 2005, income of taxpayers - individuals and legal entities from equity participation in the activities of organizations, received in the form of dividends, is taxed at a rate of 9%, and not 6%, as previously.

This amendment was included in paragraph 4 of Art. 224 and pp. 1 clause 3 art. 284 of the Tax Code of the Russian Federation by Federal Law of July 29, 2004 No. 95-FZ. Thus, when dividends are paid in 2005 for 2004, such income will be taxed at a rate of 9%.

Other payments from profits

For accounting purposes, funds transferred in connection with the implementation of charitable activities, sports events, recreation, cultural and educational events and other similar events in accordance with clause 12 of the accounting regulations “Organization expenses” (PBU 10/99), approved by order of the Ministry of Finance Russia dated May 6, 1999, No. 33n, are non-operating expenses and are reflected in the debit of account 91 “Other income and expenses.” However, such payments can also be made at the expense of retained earnings, since the decision on the use of retained earnings in a joint stock company or limited liability company is within the competence of the general meeting of shareholders (participants). Therefore, if the minutes of the general meeting of shareholders (participants) determine that some expenses should be made at the expense of profits, in accounting this expense should be reflected as a debit to account 84.

Thus, when closing (reforming) the balance sheet after making an appropriate decision, the shareholders (participants) of the company must reflect the direction of profit to reserve capital, for consumption needs and for the payment of dividends to the founders. The distribution of profit to consumption and accumulation funds is reflected in internal entries in account 84, and in analytical accounting the used and unused parts of net profit are distinguished.

Example.

At the end of 2003, the joint-stock company received a profit in the amount of 1,200,000 rubles. The General Meeting of Shareholders on March 25, 2004 approved the results of the company’s activities for 2003 and decided to pay dividends in the amount of 1,000,000 rubles. and about the direction of 200,000 rubles. to organize summer holidays for children.

Debit 84, subaccount “Retained earnings”, Credit 75, subaccount “Calculations for payment of income” - 1,000,000 rubles. - dividends accrued;

Debit 84, subaccount “Retained earnings”, Credit 84, subaccount “Profit for use according to the approved estimate” - 200,000 rubles. - the amount of profit from 2003 was reserved for use in 2004 according to the approved estimate for organizing summer holidays for children.

During 2004, in the debit of account 84, the subaccount “Profit for use according to the approved estimate,” in correspondence with cash accounts (other accounts, for example, materials accounting), the expenditure of reserved amounts of profit on children’s summer holidays was reflected. Thus, when it is actually used, there will be no balance on account 84, the subaccount “Profit for use according to the approved estimate.”

The use of profits to pay bonuses to employees of the organization, provide financial assistance, pay for cultural and sporting events, etc. is reflected in a similar way. The main condition is that the owners of the organization must decide to use the net profit for these purposes.

Retained earnings (uncovered loss) characterizes the net profit accumulated during the existence of the organization, remaining at its disposal (after paying dividends, creating a reserve fund, etc.). This part of the profit is no longer spent, and no further entries are made in the debit of account 84. Consequently, this part of the profit represents a source of funds for financing capital investments for production and non-production purposes.

In analytical accounting, funds of retained earnings used as financial support for the development of the organization and other similar activities for the acquisition (creation) of new property, as well as those not yet used, can be divided.

In order to monitor the status and use of funds to finance capital investments for analytical accounting, it is recommended to open two sub-accounts on account 84: “Retained earnings generated”, “Retained earnings used”. The organization’s retained earnings are sent to the subaccount “Retained earnings generated” and the following entry is made:

Debit 99-9, Credit 84, subaccount “Retained earnings generated.”

As fixed assets are acquired and other capital investments are made, simultaneously with the entry in the debit of account 01 and the credit of account 08, an internal entry is applied:

Debit 84, subaccount “Retained earnings generated”, Credit 84, subaccount “Retained earnings used”.

If the balance of the subaccount “Retained earnings generated” becomes a debit, then this indicates that the organization allows the immobilization of its own and borrowed funds, i.e. uses working capital as a source of acquisition of fixed assets.

Thus, if a decision on the distribution of profit was made at the annual general meeting of shareholders (participants), which was held within the time limits established by law, the accounting records can reflect the corresponding use of profit in the debit of account 84.

Procedure for submitting financial statements

Approval of the annual financial statements falls within the competence of the annual general meeting of shareholders (the next general meeting of participants). Based on the results of the approval of the annual financial statements, the organization must reflect the distribution of profits in December records, including the payment of income to the founders (participants) in the debit of account 84 in correspondence with account 75 or 70. Thus, in the annual balance sheet in the section “Capital and reserves” the indicator “Retained earnings (uncovered loss)” will not correspond to the amount of net profit received for the reporting year.

In paragraph 2 of Art. 15 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting” (with subsequent amendments and additions) establishes that annual financial statements must be submitted to the authorized bodies within 90 days after the end of the year. Thus, it turns out that the reporting must be approved by the general meeting no later than 90 days after the end of the year.

However, in accordance with paragraph 1 of Art. 47 of Law No. 208-FZ, the annual general meeting of shareholders is held within the time limits established by the company’s charter, but no earlier than two months and no later than six months after the end of the financial year; The next general meeting of LLC participants is held in accordance with Art. 34 of Law No. 14-FZ no earlier than two months and no later than four months after the end of the financial year. Consequently, a situation is possible in which the financial statements are approved in compliance with the deadlines established by these Laws, and the presentation of the statements is in violation of the deadline provided for in paragraph 2 of Art. 15 of the Law “On Accounting”. At the same time, according to paragraph 2 of Art. 15 of this Law, the submitted annual financial statements must be approved in the manner established by the constituent documents of the organization.

Of course, it would be optimal to hold the general meeting before 90 days have passed after the end of the year. However, if the organization was still unable to approve the reports within this period, then it has the right to submit them without taking into account the consideration of the results of activities for the reporting year. This is precisely the position taken by the Ministry of Finance of Russia, by whose order dated December 31, 2004 No. 135n “On introducing amendments to the Instructions on the procedure for drawing up and presenting financial statements (order dated July 22, 2003 No. 67n)” clause 14 was excluded from the Instructions, where it was said about the submission of reports taking into account the mandatory consideration of the organization’s activities for the reporting year.

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

general information

What is the main property that the company receives? The distribution and use of profits should provide financial resources for the needs of reproduction by establishing an optimal ratio between the funds that direct accumulation and consumption. In this case, special attention is paid to the state of the competitive environment. It must always be taken into account. After all, the state of the competitive environment can have a significant impact in terms of production potential, its expansion and renewal. Based on a number of factors, a decision is made on how the profit will be generated, distributed and used. Whether the funds will be used to finance capital investments, increase working capital, support research activities, introduce new technologies or something else is decided during this process.

What is profit?

This is the name given to the monetary expression of savings that are created by enterprises regardless of their form of ownership. Thanks to profit, they characterize the financial result of a company’s activities. It is an indicator that most fully reflects production efficiency, the quality and volume of products created, the level of cost and labor efficiency. 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 profits that activities for the socio-economic, scientific and technical development of the enterprise are financed and the number of employees is increased. At the same time, it is not only a source for satisfying the existing internal needs of the company, but also has a significant influence in the formation of extra/budgetary resources and charitable funds. The profit of an enterprise is the money that remains after deducting the cost of processes and taxes.

Specifics

In existing market relations, each enterprise tries to obtain the maximum possible profit. At the same time, it must not only be able to firmly maintain the sales of its products on the market, but also ensure dynamic development in a competitive environment. Therefore, before you start producing or providing something, you first study what kind of profit from sales can be received. An analysis of the potential sales market is carried out and it is determined how successfully the task can be achieved. After all, making a profit is the main goal of entrepreneurship, the end result of this type of activity. An important task that is solved in this case is to obtain the greatest income at minimal cost. This is achieved thanks to a strict regime of savings in the matter of spending funds and a constant desire to optimize their spending. At the same time, the main source of cash savings is the proceeds received from the sale of goods or services (or, more precisely, that part of it that remains after deducting the amount spent on production and sales).

Important aspect

When profits from activities are distributed, they are divided into consumed and capitalized parts. This point may 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 an enterprise has a legally established mechanism for the distribution of funds that remain at the disposal of the subject. Its features depend on the internal structure, as well as the specifics of regulating the company’s activities. It should be noted that the state cannot directly influence how the enterprise’s profits will be spent. The distribution and use of profits can only be stimulated through certain tax incentives. So, most often they talk in this spirit about innovation, charity, environmental measures, and the like.

Balance sheet profit of the enterprise

It is an object of distribution in any enterprise. This means directing profits from certain items to be used for specific purposes. The law stipulates that part of the profit must go to the budget of the state or local authorities under the guise of taxes or other obligatory payments. Everything else remains the responsibility of the company itself. Thus, the company decides for itself where to direct most of the profits from sales. The procedure for the distribution of profit and its use is prescribed in the constituent documents and individual regulations, which 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? Considering the current situation will help us better understand it.

What is profit distribution based on?

This process reflects the order and direction of use of funds and is determined by legislation, the objectives and goals of the enterprise, as well as the interests of its founders (owners). Own profit is spent based on the following principles:

1. The obligations undertaken to the state must be fulfilled.
2. It is necessary to ensure the financial interest of employees in the process of achieving the best results with minimal expenses;
3. You should be concerned about accumulating your own capital, which will ensure the process of continuous business expansion;
4. It is necessary to fulfill the obligations undertaken to the founders, creditors, investors and other persons.

Profit distribution example

Now that we have paid attention to the principles on which the process under consideration is based, let's look at the situation with a limited liability company. In this case, taxation and distribution of funds are carried out in accordance with the general procedure established for legal entities. Thus, part of the funds can be directed to which, according to the law on limited liability companies, must be formed for the timely fulfillment of their obligations. If one of the founders wants to withdraw their contribution, everything will be paid from these funds. In addition, there are savings and consumption funds. The first includes funds that in the future will be used for the development of the company and various investment projects. That is, profit management involves the allocation of separate amounts for these areas, which accumulate until the required amount of money is available. The consumption fund is engaged in social development, material incentives and pays the founders certain amounts proportional to earnings and their contributions.

Economic essence

So, we have already examined the profit of the enterprise, the distribution and use of profit 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 the conditions of commodity-money relations, here net income receives the form of profit. Having set prices for their products, companies begin to sell them to consumers. At the same time, they receive cash proceeds. But this does not necessarily imply the presence of profit. To determine financial results, revenue should be compared with expenses for the production of goods or provision of services and the amounts for their sale. Together they take the form of cost. So what to do with these indicators? When revenue is higher than cost, we can say that the financial result confirms the receipt of profit. It should be noted once again that it is always a goal for an entrepreneur. But receiving it is not guaranteed. So, if revenue and cost are equal, then only expenses were reimbursed. In such cases, production, scientific, technical and social development stops. If expenses exceed revenues, the company incurs losses. This suggests that he will have a negative financial result, a difficult situation that does not even exclude bankruptcy. At the same time, there are various profit factors that can affect the final state of affairs. First of all, you should focus on the fact that you need to sell profitable products. It is also a necessary condition that the price of goods and services must be higher than the cost.

What functions does profit serve?

1. Characterizes what was obtained as a result of the enterprise’s activities.
2. Has a stimulating effect. In other words, it is both the main element of financial resources in an enterprise and an indicator of performance. This aspect is a very good illustration of the principle of self-financing, the size of the implementation of which depends precisely on the amounts received.
3. Profit serves as a source for the formation of budgets at various levels.

What else can I say?

Separately, it is worth noting that there is a distinction between economic and accounting profit. The first refers to the difference between revenue received and production costs. slightly different. It refers to the difference between total revenue and only external costs. It should also be noted that in accounting practice there are slightly different approaches to analyzing business activities, which use different types of profit: balance sheet, taxable, net, and so on.

Distribution and use

The amount of profit may vary, but the patterns are repeated in different enterprises. The distribution and use of money is an important economic process that ensures that the needs of the people who created the enterprise are covered and generate state income. The mechanism for allocating funds must be structured in such a way that it contributes in every possible way to maximizing the efficiency of production and sales. The object of distribution is book profit. It is sent to the budget and used for specific items 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 taking into account certain principles and without violating the law. So:

1. The profit received by the enterprise as a result of its production, economic and/or financial activities is distributed between the company itself and the state.
2. Budget revenues come in the form of fees and taxes. Rates cannot be changed arbitrarily. Their list, the procedure for accrual and transfer is established by law.
3. The amount of profit that remains with the enterprise after paying taxes should not reduce its interest in improving its activities.

From what remains after making mandatory payments, fines and penalties may be collected in case of violation of the law. And it should be remembered that the profit, which 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 or in any way influence it. The only acceptable option is to create conditions for the entrepreneur by providing tax benefits. Then profits from sales will be directed to what is beneficial to the state.

The object of distribution is the balance sheet profit of the enterprise. Its distribution means the direction of profit to the budget and by items of use in the enterprise. The distribution of profits is legally regulated in that part of it that goes to budgets of different levels in the form of taxes and other obligatory payments. Determining the directions for spending the profit remaining at the disposal of the enterprise, the structure of the items of its use is within the competence of the enterprise.

Principles profit distribution can be formulated as follows:

• the profit received by the enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise as an economic entity;
• profit for the state goes to the corresponding budgets in the form of taxes and fees, the rates of which cannot be arbitrarily changed. The composition and rates of taxes, the procedure for their calculation and contributions to the budget are established by law;
• the amount of profit of the enterprise remaining at its disposal after paying taxes should not reduce its interest in increasing production volumes and improving the results of production, economic and financial activities;
• the profit remaining at the disposal of the enterprise is primarily directed to accumulation, ensuring its further development, and only the rest - to consumption.

At an enterprise, net profit is subject to distribution, i.e., profit remaining at the disposal of the enterprise after paying taxes and other obligatory payments.

Distribution net profit reflects the process of forming enterprise funds to finance the needs of production and development of the social sphere.

In modern economic conditions, the state does not establish any standards for the distribution of profits. The size of the reserve fund of enterprises is legally limited, and the procedure for forming a reserve for doubtful debts is regulated.

Distribution of net profit is one of the intra-company areas whose importance is increasing in a market economy. The procedure for the distribution and use of profits at the enterprise is fixed in the enterprise's charter and is determined by regulations, which are developed by the relevant departments of economic services and approved by the governing body of the enterprise. In accordance with the charter, enterprises draw up cost estimates financed from frequent profits remaining after settlements with the founders and shareholders.

Costings, financed from profits, includes expenses for the development of production, for the social needs of the workforce, for material incentives for workers and charitable purposes.

Expenses associated with the development of production include expenses for research, design, engineering and technological work, financing the development and development of new types of products and technological processes, expenses for improving technology and organization of production, equipment modernization, expenses associated with technical re-equipment and reconstruction of existing production, expansion of enterprises. This same group of expenses includes the costs of repaying long-term bank loans and interest on them. Expenses for environmental protection measures, etc. are also planned here. Contributions of enterprises from profits as contributions of founders to the creation of the authorized capital of other enterprises, funds transferred to unions, associations, concerns of which the enterprise is part are also considered the use of profits for development.

The use of profits for social needs includes expenses for the operation of social facilities on the balance sheet of the enterprise, financing the construction of non-production facilities, the organization and development of subsidiary agriculture, holding recreational, cultural events, etc.

Expenses for material incentives include one-time incentives for completing particularly important production tasks, payment of bonuses for the creation, development and implementation of new equipment, expenses for providing material assistance to workers and employees, one-time benefits to retiring labor veterans, pension supplements, employee compensation increase in the cost of food in canteens and buffets of the enterprise due to increased prices, etc.

All profit remaining at the disposal of the enterprise is divided into two parts. The first part increases the property of the enterprise and participates in the accumulation process, the second characterizes the share of profits used for consumption. At the same time, it is not necessary to use all the profit allocated for accumulation. The remainder of the profit not used to increase property has a reserve value and can be used in subsequent years to cover possible losses and finance various expenses.

retained earnings in a broad sense - how profit used for accumulation and retained earnings from previous years indicate the financial stability of the enterprise and the presence of a source for subsequent development.

The distribution and use of profits of partnerships and joint stock companies have their own characteristics, determined by the organizational and legal form of these enterprises.

Improving the financial and economic work of an enterprise involves managing the formation, distribution and use of profits as a single process.

The economic feasibility of the operation of an enterprise and the effectiveness of its production, economic and financial activities can be assessed using absolute and relative indicators. The first includes balance sheet profit by the elements of its formation and the net profit of the enterprise, the second includes profitability indicators.

Economic analysis is the most important stage of work preceding planning and forecasting the financial resources of an enterprise and their effective use. The results of the analysis serve as the basis for making management decisions at the enterprise management level and are the source material for the work of financial managers.

The tasks of analyzing financial results include:

• assessment of the dynamics of balance sheet and net profit indicators;
• studying the components of the formation of balance sheet profit;
• identifying and measuring the influence of factors affecting profit;
• analysis of profitability indicators;
• identification and assessment of profit growth reserves and ways to mobilize them.

The next stage is planning of profit and other financial results, taking into account the conclusions of economic analysis. The main goal in planning is to maximize income, which makes it possible to finance more of the enterprise's development needs. In this case, it is important to proceed from the amount of net profit. The task of maximizing the net profit of an enterprise is closely related to optimizing the amount of taxes paid within the framework of current legislation and preventing unproductive payments.

Introduction........................................................ ........................................................ ................3

Economic essence of profit and its types...................................................5

The procedure for distributing profits remaining at the disposal of the enterprise.................................................. ........................................................ .....eleven

Analysis of the distribution and use of net profit...................................14

Conclusion................................................. ........................................................ ..........23

Bibliography................................................ ...................................................24

Introduction.

Currently, the enterprise independently plans its activities and determines development prospects based on the demand for its products and the need to ensure industrial and social development. One of the independently planned indicators, among others, was profit. In a market economy, the basis of economic development is profit, the most important indicator of the efficiency of an enterprise, the sources of its life. However, one cannot assume that planning and profit generation remains exclusively in the sphere of interests of the enterprise. The state (budget), commercial banks, investment structures, shareholders and other holders of securities are no less interested in this.

The formation of a mechanism of fierce competition, the instability of the market situation, confronted the enterprise with the need to effectively use the internal resources at its disposal, on the one hand, and, on the other, to respond in a timely manner to changing external conditions, which include: the financial and credit system, state tax policy, pricing mechanism, market conditions, relationships with suppliers and consumers. Due to the above reasons, the directions of analytical activity are also changing.

To ensure high economic efficiency of production, a state economic policy is needed that would promote the formation of an environment favorable for economic activity and orient the enterprise towards maximum profit (income).

Since it is the state that determines the successful functioning of an enterprise, the problems of generating and using profits are currently very relevant.

Optimization of profit distribution, that is, the financial policy of profit distribution carried out at the enterprise should ensure an increase in turnover, an increase in equity capital, and the achievement of an optimal capital structure.

The main task of analyzing the distribution and use of profit is to identify trends and proportions that have developed in the distribution of profit for the reporting year compared to the previous year. Based on the results of the analysis, recommendations are developed for changing the proportions in the distribution of profit and its most rational use.

The subject of the study is the process of use and distribution of profits.

The purpose of the work is to assess the profit of the enterprise, analyze its use and distribution.

In accordance with the goal, the following tasks are set in the work:

Consider the concept and types of profit, systematize economic factors influencing the amount of profit;

Analyze the procedure for distributing profits remaining at the disposal of the enterprise;

The economic essence of profit and its types.

The basis of the market mechanism are economic indicators necessary for planning and objective assessment of the production and economic activities of an enterprise, the formation and use of special funds, and the comparison of costs and results at individual stages of the reproduction process.

Making a profit plays a big role in stimulating the development of production. But due to certain circumstances or omissions in work (failure to fulfill contractual obligations, ignorance of regulations governing the financial activities of the enterprise), the enterprise may suffer losses. Profit is a general indicator, the presence of which indicates the efficiency of production and a prosperous financial condition.

The financial condition of an enterprise is a characteristic of its competitiveness (i.e., solvency, creditworthiness), the use of financial resources and capital, and the fulfillment of obligations to the state and other organizations. Profit growth creates the financial basis for the expanded reproduction of the enterprise and the satisfaction of the social and material needs of the founders and employees.

Profit is the monetary expression of the main part of cash savings created by enterprises of any form of ownership.

The basis for the procedure for generating profit is a single model adopted for all enterprises, regardless of their form of ownership (Fig. 1).

Profit, which takes into account all the results of the production and economic activities of an enterprise, is called profit before tax. It includes - profit from sales of products (works, services), profit from other sales, income from non-sales operations, reduced by the amount of expenses on these operations.

Revenue from product sales

Cost price

Profit from sales of products, works, services

Profit from other sales

Income (less expenses) from non-operating operations

Profit before tax

Profit subject to tax

Income tax

Retained earnings

Fig.1. Scheme for generating profit of an economic entity

After generating profit, the enterprise pays taxes, and the remaining part of the profit is at the disposal of the enterprise, i.e. after paying income taxes, is called net profit.

Net profit is the difference between profit before tax and tax payments due to it. The enterprise can dispose of this profit at its own discretion, for example, direct it to production development, social development, employee incentives and dividends on shares; retained earnings remaining at the disposal of the enterprise are used to increase the company’s own capital and can be redistributed to the reserve fund - the emergency fund losses, damages, savings fund - the formation of funds for production development, consumption fund - funds for bonuses for employees, provision of material assistance, social fund. development - for various festive events.

The main indicators of profit used to evaluate production and economic activities are: balance sheet profit, profit from sales of products, gross profit, taxable profit, profit remaining at the disposal of the enterprise or net profit.

Gross profit

marginal income

Profit before tax

Net profit

In order of formation

By sources of formation

Profit from sales of services

Profit from the sale of property

Profit classification

By type of activity

Non-realization profit

By nature of use

Profit from ordinary activities

By frequency of receipt

Capitalized (undistributed)

Profit from investment activities

Profit used for dividends

Profit from financing activities

regular

emergency

Rice. 2. Classification of profits

Various aspects of the production, sales, supply and financial activities of the enterprise receive a complete monetary assessment in the system of financial performance indicators. The most important indicators of the financial performance of the enterprise are summarized in the income statement.

The most important indicators of the financial performance of the enterprise are presented in Form No. 2 of the annual and quarterly financial statements. These include: profit (loss) from sales; profit (loss) from financial and economic activities; profit (loss) of the reporting period; retained earnings (loss) of the reporting period. The following indicators of financial results can also be calculated directly from the data in Form No. 2: profit (loss) from financial and other transactions; profit remaining at the disposal of the organization after paying income tax and other mandatory payments (net profit); gross income from the sale of goods, products, works, services.

The main purpose of profit in modern economic conditions is to reflect the efficiency of the production and marketing activities of the enterprise. This is due to the fact that the amount of profit should reflect the correspondence of the individual costs of the enterprise associated with the production and sale of its products and acting in the form of prime costs, socially necessary costs, the indirect expression of which should be the price of the product. An increase in profits in conditions of stable wholesale prices indicates a decrease in the individual costs of the enterprise for the production and sale of products.