The bottom line will help you reflect the relationship between the income and expenses of your business. This indicator can be positive (profit), if income exceeds expenses, and negative (loss), when expenses are greater than income.
Instructions
Step 1
The main indicators of profit in the accounting system at the enterprise are: profit from sales, profit from sales, gross profit, profit before tax and net profit.
Step 2
The profit that the company receives as a result of the sale of products of its own production is called profit from the sale of goods or services. In this case, the indicator is calculated as the difference between the revenue received and the cost of goods sold. In full, the formula can be represented as follows: Prp = C? Vр - Срп = Vр? (C - Sep), where Prp is the profit from the sale of products, C is the price of a unit of production, Vr is the volume of products sold, Cp is the total cost of goods sold, Cep is the total cost of a unit of production.
Step 3
If an enterprise only trades in goods or services (not producing them), then in this case they speak of profit from sales, which can be calculated as the difference between gross profit and expenses (management + commercial). In its full form, the formula is as follows: Psales = B - Srp - KR - UR, where Psales is the profit from sales, B is the proceeds from the sale of products, Srp? total cost of goods sold, KR - commercial expenses, SD - administrative expenses.
Step 4
Gross profit is calculated as the difference between sales proceeds and the total cost of goods sold.
Step 5
To get the amount of profit before tax (Pdon), you need to add other income to P Sales and deduct other expenses. Having calculated the Pdon, the organization pays the necessary taxes and receives a net profit. The latter is the source of payment of the founder's income and the formation of the company's equity capital.
