The effectiveness of management in an organization is usually evaluated in terms of profit maximization. To move towards this goal, profit planning methods are often used in the enterprise.
Planning for the profit and profitability of an enterprise is a systematic and formalized approach to determining the impact of management plans on the profitability of a company. The main resources of the enterprise are people, capital and materials. In turn, they are associated with costs. At the same time, the enterprise generates products, services and, as a rule, some social effects.
For planning, forecasting the profit of the enterprise Financial Manager makes forecasts of expenses and incomes of the enterprise. After forecasting income and expenses, management manages combinations of resources, products and services to achieve ultimate goal enterprises.
Fundamentals of Profit Planning
To lay a solid foundation for profit planning in an enterprise, it is necessary to adhere to the following fundamental principles:
- Profit planning is the process of making management decisions. Essentially, managerial decision making involves the task of managing variables that can affect revenues, costs, and investments.
- The key to the success of profit planning is the competence of management in planning the activities of the enterprise. Management must have absolute confidence in their ability to set realistic goals and develop effective means to achieve these business goals.
- A comprehensive profit planning program provides for the participation of all levels of management. In order to competently engage in profit planning, management, and especially top management, must have a correct understanding of the nature and characteristics of profit planning, be sure that this particular management technique is more preferable for a given situation.
Profit planning tasks at the enterprise
Profit planning in an enterprise as a decision-making tool involves the creation of specific products, the development of long-term plans and short-term annual profile plans, which will be prepared after the development of a sales plan, production plan, administrative budget, overhead budget, etc.
The tasks of profit planning are thus similar to those of complex budgeting. It focuses on a rational approach to integrated planning, which, in turn, puts the management of objectives at the forefront. It is important to note that profit planning is not only related to the accounting function, but also to other business functions that can be considered and used independently of the overall management process.
Normative method of enterprise profit planning
Positive economic theory and practice are objective, that is, based on facts. The positive method focuses on the analysis of economic statistics and data, as well as conclusions based on these indicators (for example, whether corporate growth will increase shareholder dividends).
The normative method is subjective and aims to determine what the economic future of a company or investor will be. That is, the normative practice is a form of valuation that can introduce subjective opinions into accounting (for example, what happens if a company raises interest rates to support corporate growth). Normative planning is about future events, not past data.
The positive method is best used to explain past financial events as well as the current financial condition. This method is commonly used to generate financial documents, balance sheets, or cash flow statements.
The normative method is best used in developing future economic policy. Therefore, company plans or market strategies included in business plans can be considered as normative.
Analysis and planning of profit and profitability of the enterprise
Profitability is the main goal of all commercial enterprises. Without profitability (and therefore without making a profit), a business will not survive in the long term, so it is very important to measure current and past profitability, as well as plan for future profits.
Profitability depends on income and expenses. At the same time, it is necessary to distinguish income from the receipt of money in the course of business activities. For example, if crops and livestock are grown and sold, then income is created. Borrowing money is simply a money transaction between a business and a lender. Repayment of the loan, in turn, is not an expense - it is a money transfer between the business and the lender.
Profitability is assessed using the "Profit and Loss Statement", which is, in essence, a list of income and expenses for a certain period of time. The income statement is traditionally used to measure the profitability of a business over the past year. reporting period. However, it is possible to draw up a planned “Profit and Loss Statement”, which will measure the projected profitability of the business for the coming period. In addition, a budget can be used, for example, to plan the profitability of a particular project or line of business.
To assess the financial condition of the business, you can use various profitability ratios. These ratios, calculated from income statement data, can be compared with industry figures. In addition, income statement trends can be tracked over several years to identify emerging issues.
Stages of enterprise profit planning
1. Goal setting
At the first stage, the target profit should be set in accordance with the strategic plans of the enterprise. Moreover, the target profit of the enterprise should be realistic, based on capabilities and resources.
2. Determining the expected sales volume
The most important stage in the process of planning the revenue and profit of the enterprise. A business needs to forecast sales volume in order to achieve its profit targets. Sales are expected to take into account market trends, industries and competitive analysis. Here you can see how the planning of income and profit of the enterprise are connected.
3. Cost estimate
At this stage, the company estimates its costs for the planned sales volume. Expenses can be determined from historical data. If the enterprise is new, then data from a similar organization in the same industry can be used.
4. Definition of profit
Profit is calculated as:
- Planned Gross Profit = Planned Sales Revenue - Cost of Sales
- Planned Operating Profit = Planned Gross Profit – Operating Costs
- Estimated net income = Estimated operating income - Interest on loans - taxes
- Retained earnings = Planned net income - Dividends
| Plan for the 2nd half of 2018 | |
|---|---|
| REVENUE TOTAL | 13 275 000 |
| Operating revenue | 12 900 000 |
| Additional revenue (transport) | 375 000 |
| COST OF SALES | 9 923 077 |
| GROSS PROFIT | 3 351 923 |
| OPERATING COSTS | 1 643 100 |
| management salary | 540 000 |
| Other salary | 126 000 |
| Personnel and training costs | 292 700 |
| Marketing, PR, website support and sales department costs | 24 000 |
| Rent | 81 600 |
| Office and household expenses | 209 800 |
| Fare | 181 800 |
| Connection | 115 200 |
| Equipment depreciation | |
| Buildings and constructions | |
| Equipment | |
| Vehicles | |
| office equipment | |
| Other OS | |
| other expenses | 72 000 |
| OPERATING PROFIT | 1 708 823 |
| INTEREST ON LOANS | |
| PROFIT BEFORE TAX | 1 708 823 |
| TAXES | 596 330 |
| NET PROFIT | 1 112 493 |
| DIVIDENDS | 160 000 |
| RETAINED EARNINGS | 952 493 |
Tab. 1. Planning for the profit of an enterprise by example
Profit distribution
The profit of an enterprise before tax is usually divided into three parts: income tax, retained earnings and payments to owners (dividends). Payments to owners depend on the form of ownership of the enterprise.
The sole owner receives all profits from the business and bears all losses that may exceed the owner's investment in the business. In societies with limited liability profits and losses are distributed among the participants as specified in founding documents, usually in proportion to their contributions. AT joint stock company profits can be distributed to shareholders in the form of dividends or reinvested in the business.
Profit planning is conveniently carried out in an automated mode, for example, based on our product "WA: Financier".
First of all, profit must be considered as an economic category, a scientific abstraction that expresses certain production economic relations regarding the formation and use of the total national product (GDP), value and surplus value (surplus product). In real economic life, however, profit can take the form of cash, wealth, funds, resources, and benefits. Specific forms of manifestation of profit are closely related to the national regulation of the economy. When studying the issue, one should pay attention to the fact that several concepts of profit are currently used: accounting gross, profit before tax, net, etc.
Gross profit- this is the difference between the net proceeds from the sale of goods, products, works, services and the cost of these sales without semi-fixed management expenses and sales costs (sales expenses).
Net profit is formed in the profit and loss statement, in its content corresponds to retained earnings. The table shows that in the new income statement, firstly, accounting profit is not indicated - if necessary, it can be defined as the sum of profit (loss) before tax and extraordinary income, reduced by extraordinary expenses, and secondly , new concepts of profit before tax and profit from ordinary activities have appeared.
Profit (loss) before taxation is, in essence, profit (loss) from ordinary activities, since tax and other similar payments are a tool for the state to withdraw part of the profit. The indicator designated as profit (loss) from ordinary activities is net profit from ordinary activities, i.e. net profit excluding extraordinary income and expenses.
Considering profit as an economic category, it is necessary to single out the functions it performs.
In modern economic science, there is no consensus on what to attribute to profit functions. As a rule, there are two main functions of profit - a measure (measure) of the efficiency of social production and a stimulating function.
The function of profit as a measure of production efficiency lies in the fact that it is profit and profitability that are the main indicators of the successful operation of an enterprise and predetermine the adoption of such decisions as the company's entry into new markets, the flow of capital from one industry to another, etc.
The stimulating function of profit is predetermined by the fact that profit allows not only to receive personal income for the company's shareholders associated with the payment of dividends, but also creates opportunities for increasing capital, and, accordingly, increasing production volume, growth of the market segment in which the company operates, the possibility of entering new sales markets, which in turn leads to an increase in jobs, an increase in tax revenues to the budget.
Profit planning by direct account method
An economically sound determination of the amount of profit is of great importance for the enterprise, it allows you to correctly evaluate it financial resources, the amount of payments to the budget, the possibility of expanded reproduction and material incentives for employees. In addition, the implementation of the dividend policy of a joint-stock company also depends on the amount of profit.
Profit (loss) from sales represents gross profit less administrative and selling expenses.
When calculating the planned profit (loss) from sales, production indicators are used. Methods for forecasting and planning financial results are currently not regulated, but are described in sufficient detail in the literature. The most well-known are the two traditional methods of profit planning - the direct account method and the analytical method, which are still used with certain restrictions today.
direct counting method. The direct account is based on the fact that the quantity of sold products (sales volume) for each item item is multiplied sequentially by the selling prices and by the cost of each unit. The difference between the sums of both products for all positions of the nomenclature is the planned amount of profit. For incomparable products, the cost of each unit must be determined according to planned unit cost estimates.
In doing so, the formula is used:
P \u003d B - 3 or P \u003d P1 + P3 - P2,
where P -- profit;
B - proceeds from the sale of products at wholesale prices;
3 - the full cost of sales, which includes the cost of goods sold, products, works, services, commercial and administrative expenses;
P1, P2 - respectively, profit in balances finished products at the beginning and end of the planned year;
P3 - profit in the marketable output of the planned year, determined on the basis of the production plan for the expanded range, planned estimates for each product, estimates of management and commercial expenses.
Profit in carry-over balances of finished products is usually calculated for their entirety. Since these balances are taken into account at the conditional production cost, the profit on them is calculated as the difference between the sum of input and output balances in selling prices and at production cost. All commercial and administrative expenses are conditionally attributed to the release of marketable products. Profit in carry-over balances can also be calculated based on the production cost and the level of profitability to cost for the 4th quarter, respectively, of the reporting and planning years.
The volume and composition of balances of unsold finished products at the beginning and end of the year depends on the accounting policy of the enterprise. When determining revenue "on payment", the balances of finished goods include:
- § finished products and goods for resale at the warehouse;
- § goods shipped, but not paid for by buyers and customers, including goods in safekeeping.
If the accounting policy of the enterprise determines the moment of sale of products for their shipment, then the balances of unsold finished products are finished products and goods for resale in the warehouse.
Direct counting is methodically extremely simple, but with a large number of product items, its labor intensity increases significantly. The calculation requires: a) determining the assortment for all positions of the nomenclature; b) preparation of cost estimates for all products of comparable products; c) calculus planned cost and contractual prices for incomparable products, which, in turn, involves the development of production estimates for all its elements; d) setting prices for the sale of manufactured products.
The big disadvantage of the method is that it does not allow you to identify factors that affect the amount of profit in the planned period.
Profit planning by analytical method
The calculation base is the cost of 1 thousand rubles. marketable products, basic profitability, as well as a set of reporting indicators of the enterprise (factorial method).
Taking into account the costs of 1 thousand rubles. marketable products, profits are planned for the entire output of marketable products (comparable and incomparable). Calculated according to the formula:
P \u003d T (100-Z) / 100,
where P -- gross profit from the release of marketable products;
T -- marketable products in the selling prices of the enterprise;
3 - costs, rubles, per 1 thousand rubles. marketable products, calculated in selling prices.
To determine the total amount of gross profit from sales, the result is adjusted for the change in profit in carry-over balances of finished products.
The analytical method is used in integrated (long-term) planning, as well as at the stage of preparing preliminary calculations for a business plan.
The analytical method also includes profit planning based on basic profitability. This is a variation of the analytical method of calculating profit. Basic profitability -- the ratio of gross profit on marketable products to its cost for the reporting year. For the purpose of comparison with the target year, all expected gross profit for the target year is adjusted for price changes, even if it occurs at the end of the year. In addition, it excludes from it the part attributable to products that are removed from production in the planned year.
Using the indicator of basic profitability, gross profit is calculated for comparable marketable products. Separately, profits are calculated for incomparable commercial products, profits in carry-over balances of finished products and profits from sales in the planned year.
When calculating profits for comparable marketable products, they analyze the impact of changes on it compared to the reporting year individual factors: the cost of production, its range and quality, selling prices. The calculation includes nine stages.
- § Calculation of profit for comparable marketable products based on basic profitability. At the same time, for the purposes of comparability, all comparable marketable products of the planned year are recalculated for the cost of the reporting year based on the envisaged change (in %).
- § Determination of the impact of changes in the cost of comparable marketable products on profit. To do this, comparable marketable products of the planned year are compared at the cost of the reporting and planned years. The difference is the amount of profit (loss) from changes in cost.
- § Determination of the impact on profit for comparable commercial products of changes in the assortment. Counting average level profitability in the structure of output of the reporting and planning year. The difference shows the deviation of profitability due to assortment changes.
- § Calculation of the impact of quality on profits for comparable marketable products.
It is produced on the basis of a grade factor. Determine specific gravity of each grade of manufactured products in the total volume of production and the ratio between prices for individual grades. The price of the 1st grade is taken as 100%, the price of the 2nd grade is calculated as a percentage of the price of the 1st grade, etc.
- § Calculation of the impact on profit of changes in sales prices of marketable products. Marketable products for which new prices have been introduced are determined in terms of selling prices, multiplying by the change in prices (as a percentage).
- § Calculation of profit in carry-over balances of finished products.
The cost of carry-over balances is multiplied by the profitability in the 4th quarter of the reporting and planning year.
- § Calculation of profit from sales. Determine the gross profit, taking into account the influence of the factors considered and the profit in the carry-over balances of finished products and subtract the selling and management expenses, planned separately on the basis of estimates.
- § Determination of profit for incomparable marketable products. This profit is found by the direct method as the difference between the selling price of the enterprise and the cost of products. If prices are not set, the profit is calculated by the average level of profitability.
- § Calculation of the total profit from sales. Summarize the profits from sales of comparable and incomparable products.
To calculate the final financial result, in addition to profit from sales, the results from operating and non-operating income and expenses are calculated.
The concept of profitability
If a company makes a profit, it is considered profitable. Profitability indicators used in economic calculations, characterize relative profitability.
The effectiveness and economic feasibility of the functioning of an enterprise can be assessed using absolute and relative indicators
Absolute indicators allow us to analyze the dynamics of various profit indicators over a number of years. At the same time, it should be noted that in order to obtain more objective results, indicators should be calculated taking into account inflationary processes.
Relative indicators are less affected by inflation. are various ratios of profit and invested capital, or profit and production costs.
By the absolute amount of profit, it is not always possible to judge the level of profitability of an enterprise, since its size is affected not only by the quality of work, but also by the scale of activity. Therefore, to characterize the efficiency of the enterprise, along with the absolute amount of profit, they use relative indicator- the level of profitability.
These characteristics are most appropriate to consider relative to other time periods. Absolute numbers by themselves carry little information. Only knowing the dynamics of their change, it is possible to more reliably judge the work of the enterprise.
In conditions market relations the role of indicators of profitability of products, characterizing the level of profitability (unprofitableness) of its production, is great. Profitability indicators are relative characteristics of the financial results and performance of the enterprise. They characterize the relative profitability of the enterprise, measured as a percentage of the cost of funds or capital from various positions.
Profitability indicators
Profitability indicators are the most important characteristics of the actual environment for the formation of profits and income of enterprises. For this reason, they are indispensable elements. comparative analysis and assessment of the financial condition of the enterprise. When analyzing production, profitability indicators are used as an instrument of investment policy and pricing. The main indicators of profitability can be combined into groups, which will be discussed below.
Product profitability
The profitability of products shows how much profit falls on a unit of sold products. Growth this indicator is the result of rising prices fixed costs for the production of sold products (works, services) or a reduction in production costs at constant prices, that is, a decrease in demand for the company's products, as well as a faster increase in prices than costs.
The product profitability indicator includes the following indicators:
- § Profitability of all sold products, which is the ratio of profit from the sale of products to the proceeds from its sale (excluding VAT);
- § Total profitability, equal to the ratio of balance sheet profit to proceeds from sales of products (excluding VAT);
- § Profitability of sales based on net profit, defined as the ratio of net profit to sales proceeds (without VAT);
- § Profitability certain types products. The ratio of profit from the sale of this type of product to its selling price.
Return on investment of the enterprise
The return on investment of an enterprise is the next indicator of profitability, which shows the efficiency of using all the property of an enterprise.
Among the indicators of profitability of the enterprise, there are 5 main ones:
- § The total return on investment, showing what part of the balance sheet profit falls on 1 rub. property of the enterprise, that is, how effectively it is used.
- § Return on investment in terms of net profit;
- § Profitability of own funds, which allows to establish the relationship between the amount of invested own resources and the amount of profit received from their use.
- § Profitability of long-term financial investments, showing the effectiveness of the enterprise's investments in the activities of other organizations.
- § Profitability of permanent capital. Shows the effectiveness of the use of capital invested in the activities of this enterprise for a long time.
Overall profitability
The profitability of the enterprise (total profitability), is defined as the ratio of the balance sheet profit to average cost Main production assets and normalized working capital. The ratio of the fund to material and equivalent costs reflects the profitability of the enterprise. In other words, the level of overall profitability, that is, an indicator that reflects the growth of all invested capital (assets), equals profit before interest * 100 and divided by assets.
The level of overall profitability is a key indicator when analyzing the profitability of an enterprise. But if you want to more accurately determine the development of the organization, based on the level of its overall profitability, you need to additionally calculate two more key indicators: profitability of turnover and the number of capital turnover.
Profitability of turnover reflects the relationship between the gross revenue (turnover) of the enterprise and its costs and is calculated by the formula:
Rent. ABOUT. = Approx. to initial % *100 / Gross Revenue
The greater the profit compared to the gross revenue of the enterprise, the greater the profitability of the turnover. The number of capital turnover reflects the ratio of the gross proceeds (turnover) of the enterprise to the value of its capital and is calculated by the formula:
Number of OBs. Equity = Gross Revenue / Assets
The higher the gross revenue of the firm, the greater the number of turnovers of its capital. As a result, it follows that
Level of General Rent. = Rent OB. * Number of OBs. Capital
Indicators of profitability and profitability have a common economic characteristics, they reflect the final efficiency of the enterprise and its products. The main indicator of the level of profitability is the ratio of the total amount of profit to production assets.
There are many factors that determine the amount of profit and the level of profitability. These factors can be divided into internal and external. External - these are factors that do not depend on the efforts of this team, for example, changes in prices for materials, products, transportation rates, depreciation rates, etc. Such activities are carried out on a general scale and have a strong impact on the general indicators of production - economic activity enterprises. Structural shifts in the product range significantly affect the value of products sold, the cost and profitability of production.
A task economic analysis on profitability - to identify the impact external factors, determine the amount of profit received as a result of the action of the main internal factors that reflect the labor investments of employees and the efficiency of the use of production resources.
Indicators of profitability (yield) are general economic. They reflect the final financial results and are reflected in the balance sheet and profit and loss, sales, income and profitability statements. Profitability can be considered as a result of the impact of technical and economic factors, and therefore as objects of technical and economic analysis, the main purpose of which is to identify the quantitative dependence of the final financial results of production and economic activities on the main technical and economic factors.
Profitability is the result production process, it is formed under the influence of factors associated with increasing the efficiency of working capital, reducing costs and increasing the profitability of products and individual products. The overall profitability of the enterprise must be considered as a function of a number of quantitative indicators - factors: the structure and return on assets of fixed production assets, the turnover of normalized working capital, the profitability of sales. This is the 2nd approach to the analysis of the profitability of the enterprise. For such an analysis, a modified formula for calculating the overall profitability indicator proposed by A.D. Sheremet is used.
P \u003d (E / 1 / UM) + 1 / K, where
P - total profitability of the enterprise%
E - total (balance sheet) profit, % of the volume of sales;
Y - the share of the active part in the total cost of fixed production assets, the share of a unit;
M - coefficient of return on assets of the active part of fixed production assets;
K - turnover ratio of normalized funds.
Methodology for analyzing the overall profitability
Methodology for analyzing the overall profitability:
- § by efficiency factors;
- § Depending on the amount of profit and the value of production factors.
Balance sheet (total) profit is the final financial result of production financial activities. Instead of a total profit, an enterprise may have a general loss, and such an enterprise will become unprofitable. The total profit (loss) consists of profit (loss) from the sale of products, works and services; non-operating profits and losses. The profitability of an enterprise is understood as its ability to increase the invested capital. The task of profitability analysis are several provisions: to evaluate the dynamics of the profitability indicator since the beginning of the year, the degree of implementation of the plan, determine and evaluate the factors influencing these indicators, and their deviations from the plan; identify and study the causes of losses and losses caused by mismanagement, errors in management and other omissions in the production and economic activities of the enterprise; open and calculate the reserves of a possible increase in profits or income of the enterprise.
Profitability should also be calculated for certain areas of the enterprise, in particular: profitability for core activities
Res. from real. * 100 / Zat. on the production products
return on fixed capital
Balance. Etc. or Ub. / Amount of events cf. at the beginning of the year and at the end of the year
GMgm = p - a,
where GMgm -- specific contribution margin;
R -- the price of a unit of production; a - variable costs per unit of output.
Coefficient contribution margin calculated as the share of marginal profit in sales proceeds (S):
Margin of financial strength
It is necessary to disclose the content of this term, determine the procedure for calculating its value.
The margin of financial safety, or margin of safety, shows how much you can reduce production without incurring losses. In absolute terms, the calculation represents the difference between the planned sales volume and the break-even point.
§ In absolute terms:
Zfin = Qplan - Qmin
§ In relative terms:
Zfin = (Qplan - Qmin) / Qplan
The indicator of financial strength, calculated in relative terms as a share of the projected sales volume, is used to assess production risk, i.e., losses associated with the structure of production costs.
§ In value terms:
Zfin \u003d Qplan * P - Qmin * P where P is the price of the product.
The higher the financial strength indicator, the lower the risk of losses for the enterprise.
A complete and comprehensive risk assessment is of fundamental importance when making financial decisions, therefore, in the Western financial management Numerous methods have been developed that allow using the mathematical apparatus to calculate the consequences of the measures taken.
The calculation of the planned profit (P) is carried out according to the formula:
P \u003d (O × C) - (O × C),
where O is the volume of output in the planned period in physical terms;
C - price per unit of production (net of VAT and excises);
C is the total cost of a unit of production.
Profit on commodity output (Ptp) is planned on the basis of the cost estimate for the production and sale of products, which determines the cost of commodity output of the planned period:
Ptp \u003d Tstp - Stp,
where Ctp is the cost of commodity output of the planned period in current selling prices (excluding VAT, excises, trade and sales discounts);
Stp - the full cost of marketable products of the planned period.
It is necessary to distinguish the planned amount of profit per commodity output from the profit planned for the volume of products sold. Profit on products sold (Prp) in general terms is calculated by the formula:
Prp = Vrp - Srp,
where Vrp is the planned revenue from the sale of products in current prices (excluding VAT, excises, trade and marketing discounts);
CRP - the full cost of products sold in the coming period.
In more detail, the profit from the volume of products sold in the planned period is determined by the formula:
Prp \u003d Mon + Ptp - Pok,
where Mon - the amount of profit of the balance of unsold products at the beginning of the planning period;
Ptp - profit from the volume of output of marketable products in the planned period;
Pok - profit from the balance of unsold products at the end of the planning period.
This calculation method is applicable to the enlarged direct method of profit planning, when it is easy to determine the volume of products sold in prices and at cost.
38. Distribution of profits in the enterprise.
The object of profit distribution is the balance sheet profit of the enterprise. Under its distribution is understood the direction of the enterprise. Legislatively, the distribution of profits is regulated in that part of it that goes to the budgets. different levels in the form of taxes and other obligatory payments. Determining the directions of spending the profit remaining at the disposal of the enterprise, the structure of the articles of its use is within the competence of the enterprise.
The principles of 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 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 the volume of production and improving the results of production, economic and financial activities.
the profit remaining at the disposal of the enterprise is primarily directed to accumulation, which ensures its further development, and only in the rest - to consumption.
At the enterprise, net profit is subject to distribution, i.e. profit remaining at the disposal of the enterprise after paying taxes and other obligatory payments. Sanctions paid to the budget and some off-budget funds are collected from it.
The distribution of net profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.
In modern economic conditions, the state does not establish any standards for the distribution of profits, but through the procedure for presenting tax benefits, it stimulates the direction of profits for capital investments of an industrial and non-productive nature, charitable purposes, financing of environmental measures, etc. The size of the reserve fund of enterprises is legally limited, the procedure for forming allowance for doubtful debts.
The distribution of net profit is one of the areas of intra-company planning, the significance of which in the conditions market economy increases. The procedure for the distribution and use of profits at the enterprise is fixed in the charter of the enterprise and the provision is determined, which is developed by the relevant divisions of economic services and approved by the governing body of the enterprise. In accordance with the charter, enterprises can draw up cost estimates financed from profits, or form special-purpose funds: accumulation funds (production development fund or production and scientific and technological development fund, fund social development) and consumption funds (material incentive fund).
The estimate of expenses financed from profits includes expenses for the development of production, social needs of the workforce, material incentives for employees and charitable purposes.
All profit remaining at the disposal of the enterprise is divided into two parts. The first increases the property of the enterprise and participates in the process of accumulation. The second characterizes the share of profit used for consumption. At the same time, it is not necessary to use all the profits allocated for accumulation in full. The rest of the profit not used to increase the property has an important reserve value and can be used in subsequent years to cover possible losses and finance various expenses.
Retained earnings in a broad sense, and retained earnings of past years indicate the financial stability of the enterprise, the availability of a source for further development.
Profit from the activities of the enterprise is the main source of financing for its further development and operation. Despite this, the main goal of the company's activity is the accumulation and preservation of capital, which is why it is important to calculate the system of expenses and income in such a way that the invested money returns as quickly as possible, and the company begins to bring dividends to its management.
The need to forecast profitability
Enterprise profit planning is milestone in formation and development. It helps to organize its functioning in such a way that at the minimum financial cost it is possible to obtain the maximum benefit, in accordance with the tasks set in the business plan for the future.
Enterprise profit planning is focused on meeting the following needs:
- Payment of salaries and incentives for workers.
- Accumulation equity, intended for investments in the modernization and expansion of the technical base.
- Repayment of debt and regular payments to management and management personnel, creditors, investors and government agencies to which there are obligations.
- Increasing the amount of profit in relation to possible risks from strategic action.
- Guarantee of keeping the competitiveness of the enterprise in the market.
- Maximize profitability.
Knowing the approximate amount of earnings, you can determine whether the business pays off in practice and whether it is necessary to make adjustments to correct and improve it.
The organization's budget system
Revenue is the main indicator of a company's profitability. Roughly speaking, this is the difference between profit and all associated costs, reflecting the benefit from the sale of goods and services, expressed in material terms.
The company can receive financial growth from the following sources:
- Economic income is the revenue received minus the cost of goods.
- Accounting income - not only expenses spent directly on production, but also payment for related services are deducted from profit.
- Net income is the balance that is the difference between accounting income and taxes paid.
Sources of income of the enterprise
The main profit is formed by accumulating money in the budget from the following sources:
- Sale of finished products or blanks, semi-finished products and raw materials.
- Payment for work in another production: transportation, repair services or construction.
- Revenue from the sale of goods and services at points of sale.
- Dividends from securities.
- Sale of franchises, real estate, etc.
Formation of gross profit
This indicator is formed in the total activity of the enterprise: production, management, investment, financial and other. It accumulates in two stages: the release of goods and its sale in order to obtain capital.
Key indicators and factors influencing gross profit
There are two large groups of factors: internal and external.
The activities of the company and its management affect the following indicators:
- The size and volume of goods produced, as well as their range and quality.
- The amount of resources and time spent on the production of a unit of output, in other words, the cost.
- The amount of working capital that the company has in the public domain.
In addition to these factors, there are those that do not depend on the activities of the management of a particular company:
- The level of development and competitiveness in the market of goods and services.
- natural and weather conditions.
- Solvency of customers and general economic situation in the country.
- The cost of related services.
- Foreign economic relations with other countries.
- Conditions of transportation and cost of transportation.
It is also worth considering force majeure situations that occur during each production process.
Analytical scoring method
This method is used in enterprises with a large assortment of manufactured goods. It is based on the basic profitability, which is calculated according to the following formula:
Р = (P/S) *100%, where P – profitability; P - profit received in the first year of the enterprise (base year); C is the cost of goods sold in the base year.
P \u003d N t * P / 100%, where N t is the volume of products planned for release in the planned year; R - basic profitability.
The data obtained is corrected and adjusted for production, taking into account internal and external factors that arise in the course of the company's activities. This happens in several stages:
- Assessment of profitability for the planned period of time.
- Adjustment of production volumes taking into account the factors that have arisen and real indicators.
- Calculation of the amount of net profit as a percentage of the total amount of income.
- Profit planning and profitability of sales, taking into account the changes made in the production process.
Often, the multivariate or analytical method is used as an additional verification of the direct method or in combination with it. Profit planning by the method of direct calculation and analytical methods in combination is a mixed method that makes it possible to obtain the most relevant and reliable data.
Direct Count Method
One of the most popular methods in practice is planning the profit of an enterprise by the direct account method, which is used both when forming a new enterprise, and during the improvement or modernization of an existing one. Profit planning requires subtracting from total revenue such things as taxes, recurring payments, production costs, and other deductions necessary to keep the company afloat.
Profit and profitability planning of an enterprise is calculated by the formula:
P \u003d V - Z, where P - profit, V - income received from sales; Z - the totality of all waste that was made during production: raw materials, commercial management, taxes, payment for work and services, payment on loans, etc.
In the future, revenue and the volume of the full cost are calculated taking into account the residual funds and products that pass from the end of the previous planning period to the beginning of the new one. In this case, profit planning using the direct account method is carried out according to the following formula:
P \u003d P1 + P2 - P3, where P - profit from the sale of goods and services; P1 - from residues finished goods at the beginning of the period; P2 - from sales of new products; P3 - from residual production at the end of the planning period.
Pros and cons of direct account
The advantage of this method is the accuracy and relevance of the data. A significant drawback is the complexity of the calculation: collecting all the necessary numbers takes a lot of time and requires painstaking attention.
This profit and profitability planning can only be applied to small enterprises that produce a limited number of product groups. If the production nomenclature includes a large array of items, this calculation option is not applicable: it does not take into account the profitability / unprofitability of each product separately and the difference in the costs of their production. 
Profit planning by the method of direct calculation on the example of large-scale production gives inaccurate and irrelevant results. Let's say a company produces 50 clothing options from different materials and complexity of tailoring. Some models are in high demand and their tailoring requires less effort and resources, while certain products are less popular and their cost is much higher. This is an important point to consider when creating a business plan, because if you continue to issue unprofitable positions, this will lead to the ruin of the company in the future.
Graphical approach
For good example and further consideration of the results obtained, use network charts. Most often, the data obtained during the analysis are presented in the form of figures. 
The graphs clearly show the influence of individual factors on the overall financial condition of the organization.
Profitability forecasting method based on the break-even point
This profit planning is based on the division of all production costs into two groups: temporary and permanent. These two indicators determine the financial success of the enterprise and help to delineate the critical break-even point, after which the company begins to receive monetary benefits. 
The first stage is the calculation of marginal profit. This is the sum of income excluding taxes and excises, subtracting time expenses. Then, conditionally subtracted from the marginal profit fixed expenses. Thus, a value is formed, beyond which it is possible to determine the payback or unprofitability of the enterprise.
For example:
Sales income - 100 thousand rubles.
Variable expenses - 50 thousand rubles.
Fixed expenses - 30 thousand rubles.
Profit - 20 thousand rubles.
- Margin Percentage: (50/100) *100% = 50;
- Breakeven point calculation: (30: 50) *100% = 60;
- Operating lever action: 50: 20 = 2.5. This coefficient indicates that a change in sales revenue by 1 unit entails a change in profit by 2.5 times.
Choosing the optimal counting method
The calculation methods proposed above make it possible to choose the best option, which will help to obtain the most reliable figures. 
When choosing a method, one should be guided by a system of criteria compiled by enterprise experts (accountants, economists, administration and financiers). The maximum number of personnel should be involved in this issue, only in this case it is possible to obtain the most objective data.
Landmarks in choosing the optimal method
It is worth starting from such indicators:
- Ease of calculation. The chosen method should be simple and accessible in application. Time and resources spent on data collection and analysis should not exceed economic efficiency from the use of the results obtained in practice.
- Relevance. Profit planning must take into account the real factors of production. It is necessary to take into account all objective points: not only those that have an impact in the current period, but also those that will manifest themselves in the process of implementing the plan.
- Practicality. The choice of method should be related to internal factors enterprises. The turnover of documentation, the level of qualification of specialists and technical support must guarantee the effectiveness of the application of the rules in practice.
- Data accuracy. The result obtained in the course of calculations should correspond to reality and be as close as possible to market realities. Compliance with this criterion allows you to minimize the difference between the amount of possible and real income.
This system of criteria is presented as an illustrative example and can be changed and improved by the company's specialists, who will be guided by individual priorities. 
Having all the necessary criteria in hand, you can proceed directly to the selection of the method. To do this, all the methods presented above should be evaluated according to the main criteria, giving them a rating from 1 to 5. The option that has collected the most points is considered the most beneficial for use in a particular production.
Regardless of the profitability forecasting method chosen, it should be borne in mind that these are only approximate data that require constant adjustments and updates in accordance with new circumstances and changes in the market.
Profit is the main factor of economic and social development not only for the enterprise, but also for the country's economy as a whole. Therefore, economically sound profit planning in enterprises is of great importance.
Profit is planned separately by type, namely:
- income from the sale of products and goods;
- profit from the sale of other non-commodity products and services;
- profit from the sale of fixed assets;
- profit from the sale of other property and property rights;
- income from payment for work performed and services rendered, etc.;
- profit (loss) from non-sales operations.
The main methods of profit planning are:
- direct counting method;
- analytical method;
- combined calculation method.
DIRECT COUNTING METHOD
This method is most common in enterprises in modern conditions management. It is used, as a rule, with a small assortment of products. Its essence is that profit is calculated as the difference between the proceeds from the sale of products at the appropriate prices, excluding VAT and excises, and its full cost. The calculation of the planned profit (P) is carried out according to the formula:
P \u003d (O × C) - (O × C),
where O is the volume of output in the planned period in physical terms;
C - price per unit of production (net of VAT and excises);
C is the total cost of a unit of production.
Profit on commodity output (Ptp) is planned on the basis of the cost estimate for the production and sale of products, which determines the cost of commodity output of the planned period:
Ptp \u003d Tstp - Stp,
where Ctp is the cost of commodity output of the planned period in current selling prices (excluding VAT, excises, trade and sales discounts);
Stp - the full cost of marketable products of the planned period.
It is necessary to distinguish the planned amount of profit per commodity output from the profit planned for the volume of products sold. Profit on sales (PRP) in general view calculated by the formula:
Prp \u003d Wrp - Crp,
where Vrp is the planned revenue from the sale of products in current prices (excluding VAT, excises, trade and marketing discounts);
CRP - the full cost of products sold in the coming period.
In more detail, the profit from the volume of products sold in the planned period is determined by the formula:
Prp \u003d Mon + Ptp - Pok,
where Pon - the amount of profit of the balances of unsold products at the beginning of the planning period;
Ptp - profit from the volume of output of marketable products in the planned period;
Pok - profit from the balance of unsold products at the end of the planning period.
This calculation method is applicable to the enlarged direct method of profit planning, when it is easy to determine the volume of products sold in prices and at cost.
A variation of the direct counting method is the assortment-wise profit planning method. With this method, the profit is summed up for all assortment positions. To the result obtained, profit is added in the balance of finished products that were not sold at the beginning of the planning period.
ANALYTICAL METHOD
This method is used with a large range of products, and also as an addition to the direct method, since it allows you to identify the influence of individual factors on planned profit. With the analytical method, profit is calculated not for each type of product manufactured in the planned year, but for all comparable products as a whole. Profit on incomparable products is determined separately. The calculation of profit by the analytical method includes three successive stages:
1) determination of the basic profitability as a quotient of the expected profit for the reporting year divided by the full cost of comparable marketable products for the same period;
2) calculation of the volume of marketable products in the planning period at the cost of the reporting year and the determination of profit on marketable products based on the basic profitability;
3) taking into account the impact on the planned profit of various factors: reducing the cost of comparable products, improving its quality and grade, changing the assortment, prices, etc.
After performing the calculations for all three stages, the profit from the sale of marketable products is determined.
In addition to profit from the sale of marketable products, profit, as noted earlier, takes into account profit from the sale of other products and services of a non-commercial nature, profit from the sale of fixed assets and other property, as well as planned non-operating income and expenses.
Profit from other sales (products and services of ancillary Agriculture, fleets, non-industrial services for capital construction, for overhaul, etc.) is planned using the direct counting method. The result from other implementation can be both positive and negative.
Profit (losses) from traditional items of non-operating income and expenses (fines, penalties, forfeits, etc.) is determined, as a rule, based on the experience of past years.
After calculating the profit (loss) for other types of activities, as well as non-operating income and expenses, and taking into account the profit from the sale of marketable products, the gross (total) profit of the enterprise is determined.
COMBINED CALCULATION METHOD
In this case, elements of the first and second methods are applied. Thus, the cost of marketable products in the prices of the planned year and at the cost of the reporting year is determined by the direct calculation method, and the impact on the planned profit of such factors as changes in cost, quality improvement, changes in assortment, prices, etc., is revealed using the analytical method.
Getting a certain amount of profit determines the efficiency of production, but the amount of profit itself does not characterize how efficiently the enterprise works. To do this, it is necessary to "weigh" the mass of profits against the costs of the enterprise. These goals are met by the indicator of profitability.
Profitability is a relative indicator of production efficiency, characterizing the level of return on costs and the degree of use of resources, expressed as a percentage. The basis for constructing profitability ratios is the ratio of profit (most often, net profit is included in the calculation of profitability indicators) either to the funds spent, or to sales proceeds, or to the assets of the enterprise. Thus, the profitability ratios show the degree of efficiency of the company.
The main groups into which profitability indicators can be divided are shown in the table.
The main groups of profitability indicators
|
Profitability indicators |
Calculation formulas |
Purpose |
|
Profitability of individual types of products, all marketable products and production |
Profit per Unit of Production / Unit Cost of Production × 100% Profit per commercial output / Cost of commercial products × 100% Balance sheet (net) profit / Sum of fixed production assets and inventories × 100% |
Characterizes profitability various kinds products, all marketable products and the profitability (profitability) of the enterprise. Serves as the basis for setting prices |
|
Return on sales (sales) |
Profit from product sales / Sales revenue × 100% balance sheet profit / (Net sales proceeds + Income from other sales and non-operating transactions) × 100% |
Shows what percentage of profit the company receives from each ruble of sales. Serves as the basis for the choice of the range of products |
|
Return on assets (capital) Return on current assets Profitability net assets |
Profit / Total assets× 100% Profit / Current Assets × 100% Profit / Net assets × 100% |
These comprehensive indicators characterize the return that falls on the ruble of the respective assets. Reflects the effectiveness of the funds invested in the enterprise |
|
Return on equity |
Net Income / Equity × 100% |
It characterizes the profit that falls on the ruble of equity after paying interest on loans and taxes. Characterizes the return or profitability of own funds |
The most commonly used indicators are return on assets (capital), return on net assets, return on equity and return on sales. The relationship between these indicators is shown in fig. 1-3.
In analytical work, the total amount of assets is also often replaced by the value of current assets and the profitability of using the latter is analyzed.
As an indicator of profit, depending on the specific conditions of activity, indicators of profit before tax, profit from ordinary activities or net profit are used.
AT foreign practice as the numerator, profit before tax is most often used, and some organizations take into account net profit.
The following indicators are used as assets (the denominator of the formula):
- the value of assets on the balance sheet;
- the value of assets on the balance sheet plus depreciation amounts on depreciable assets;
- operating assets;
- working capital plus non-current assets.
VC. Sklyarenko, prof. REA them. G.V. Plekhanov, Ph.D. economy Sciences, R.P. Kazakova, prof. REA them. G.V. Plekhanov