The indicator of net profit for any enterprise is the most important. Net profit is the result of the company's activities for a certain period. It shows the amount of money that the company received by paying all tax fees, salaries to its employees and other payments that are mandatory.
Instructions
Step 1
Calculating net income is easy enough. To do this, you need to decide on the period for which the calculation will be carried out.
Step 2
To determine the amount of net profit, it is necessary to determine the formula by which all calculations will be made.
Step 3
The net profit of an enterprise can be determined when the following indicators are known: gross profit, financial profit, the amount of taxes paid for the period, and other operating profit.
Step 4
The formula for calculating net profit is as follows:
Net profit = finance profit + gross profit + other operating profit - taxes.
Step 5
To calculate the net profit, you need to use the data from the financial statements. Net profit is formed on the “Profit and Loss” accounting account.
Step 6
To calculate gross profit, you need the following data: revenue for the specified period and cost of production. Subtract the second from the first figure to get the gross profit.
Step 7
Other operating income is defined as the difference between other operating income and expenses. In order to calculate the financial income, you need to deduct the expenses of this category from the financial income.
Step 8
After you calculate the necessary indicators, you will be able to determine the amount of net profit. If you received a value with a "-" sign, then, accordingly, the enterprise incurred losses during the study period.
Step 9
The resulting net profit is usually used by the entity at the discretion of management. As a rule, the net profit is used to pay for operating expenses. Sometimes the bottom line is accumulated or used for charitable purposes.
