The purpose of the existence of any commercial organization is to make a profit from its activities. There is a methodology for calculating taxable profit, in which all income and expenses recognized for tax purposes are clearly regulated. In simplified form, the profit calculation formula is the difference between an organization's income and expenses.
Instructions
Step 1
The calculation of the amount of profit is made in stages for tax purposes. The key concept in calculating the amount of profit is revenue. It includes all the amounts that the organization received from the sale of its goods, the provision of any services or works and other receipts of money to the personal account and to the cash desk of the organization related to its ordinary activities.
Step 2
In the balance sheet, reflect the revenue in line 2110 of the Profit and Loss Statement. Find its amount by subtracting from the total amount on the credit of account 90-1 "Revenue" the amounts of export duties, excise taxes and VAT, which are reflected in the debit of sub-accounts 90-4, 90-5 and 90-3. The resulting value will be the starting point for further calculating the amount of profit.
Step 3
From this amount of revenue for the period for which the calculation is being made, subtract the cost of sales, that is, the initial costs for carrying out the main activity. Thus, you will receive the so-called gross profit. If you then subtract the amount of money the organization spent on administrative and selling expenses from gross profit, you get a figure that reflects the profit (or in some cases, the loss) from sales.
Step 4
The next step in calculating the algorithm for calculating the amount of profit for tax purposes is to subtract other expenses and interest payable from the amount of profit from sales. At the same time, do not forget to add to the resulting figure the values of lines 2310 “Income from participation in other organizations”, 2320 “Interest receivable” and 2340 “Other income”. To assess real net profit, business owners often limit themselves to the perception of profit without adding to it virtual indicators that exist in accounting, but are not currently in the company's current account. In any case, income tax is levied on the amount calculated in accordance with the above algorithm.
