The activities of enterprises are aimed at making a profit, which characterizes the effectiveness of the management policy of the management. To correctly assess the financial result, careful accounting of income and expenses is required, on the basis of which one can judge the profitability or loss-making of the organization.
It is necessary
- - balance sheet (form No. 1);
- - profit and loss statement (form No. 2).
Instructions
Step 1
The summarized results of the financial and economic activities of the enterprise are contained in the financial statements: in the form No. 1 of the balance sheet the total amount of accumulated profit or uncovered loss at the beginning and end of the reporting period is indicated, and in the form No. 2 - the income statement - the initial data for the formation of the financial result. In addition, according to Form No. 2, you can track all types of profits (gross, from sales, to tax, net) and determine the profitability of the organization.
Step 2
Compare the data from line 1370 "Retained earnings (uncovered loss)" of form No. 1 of the balance sheet with each other: the excess of the indicator at the reporting date over the value at the beginning of the year indicates the profitable activity of the enterprise during the reporting period. But the analysis for a single date does not reflect the real picture, therefore, to determine profitability, consider the data for at least 1 year, that is, for 5 reporting dates.
Step 3
The constant growth in the value of retained earnings testifies to the competent management of income and expenses. A decrease in the indicator means a loss, even if it is expressed as a positive number. At the same time, if at the beginning of the analyzed period the value in line 1370 is negative, but tends to zero and above during the year, we can talk about the gradual recovery of the enterprise from the crisis and profitable activity.
Step 4
Basic information about the profit and loss of the company is contained in the report of the same name. Estimate the total financial result in line 2400 "Net profit (loss)". A separate indicator testifies to the result of financial and economic activities as of the reporting date, so draw conclusions based on the values of several periods, that is, in dynamics.
Step 5
To summarize the information, draw up an aggregated profit and loss statement in the form of a table: in the vertical range of values, list the lines of the report, in the horizontal range - the dates in question. If, according to the results of any of the considered time periods, a decrease in the indicator is noted, analyze the formation of profit at each stage in order to find the source of the loss.
Step 6
To determine the gross profit, subtract the cost of sales from the amount of operating income - proceeds from the sale of goods, products, services, works without VAT. Then calculate your profit from sales by subtracting the gross margin by the total selling and administrative expenses.
Step 7
Next, estimate other income, including from participation in other organizations, such as subsidiaries, and interest receivable. Add that amount to your sales profit, and then subtract interest payable and other expenses - you get pre-tax profit.
Step 8
To obtain the value of net profit or loss, calculate and subtract from profit before tax the current income tax, tax sanctions, and, if necessary, reflect changes in permanent tax assets and liabilities.
