Total income for all types of activities. What is profit, income and revenue of an enterprise? What is gross profit

For many people, it remains not entirely clear what enterprise profit and income are. And if you delve deeper into this topic, many clarifying terms come up: gross profit, EBITDA, net profit.

It turns out that economists, accountants and statistical officials, when publishing their indicators, have in mind strictly defined meanings of each term. Such definitions are given in state legislative documents, and knowledge of them is mandatory for all reporting employees. But since the area of ​​profitability and profitability is of interest to many non-professionals, it would be useful to understand the essence of the concepts being discussed.

What is revenue?

The most easily understood concept in modern economics is revenue. Indeed, revenue is funds received by an organization or private entrepreneur in payment for a product or service. It seems that everything is simple.

However, revenue has its own characteristics at the moment it is recognized as such. In everyday life, revenue is understood as real money at the time the seller receives it - revenue is determined by payment. There is a name for this case: the cash method of revenue accounting. That is, the company can give its goods to the buyer with deferred payment, and until the money arrives in the bank account, there will be no revenue. The downside of the cash method is the need to count all advances received as revenue.

Another, more common method of accounting for revenue is usually used in large companies. This is an accrual method of accounting for revenue. That is, revenue is recognized as such when the goods are transferred to the buyer or at the time of signing the certificate of services rendered, regardless of the actual date of receipt of money. In this case, advances for supplies are not considered revenue.

Revenue can be gross or net. Gross revenue is the entire amount of money received for a product or service. Or the full cost of the exchange agreement, if we are talking about barter transactions. This indicator is of little interest, since there are mandatory taxes and excise taxes, as well as duties, which are directly included in the price of the product (service). This means that they must be removed from the buyer's payment and returned to the state.

This is how another indicator appears - net revenue. It characterizes the activities of the enterprise, regardless of the composition and amount of taxes and excise taxes included in the sales price. Net revenue is always reported in one of the main financial statements accounting documents– profit and loss statement.

What is income?

Income is the amount by which the capital of an enterprise grows. How can he even grow? One way is through the making of contributions by the owners of the enterprise, and the other is through its activities. After all, any enterprise is created for the sole purpose of generating income.

The classification of income and expenses is so important that statesmen have devoted many documents to it. The most significant of them are the Tax Code and PBU. The Regulations on Accounting “Income of Organizations” provide complete explanations of the methods of formation and types of income of an enterprise.

Without delving into the intricacies of these monumental works, it can be noted that income from core activities is net sales revenue. Income can be equal to revenue, but this is a rare case. Typically, an enterprise carries out a variety of activities, including different types income.

In addition to income from direct statutory activities, an enterprise can receive other income. For example, interest on keeping your own money on deposit or penalties collected from partners. These incomes are classified as other income, but they also participate in the formation of the enterprise’s profit.

What is gross profit?

Having summed up the income received from various types activities and reducing them by the costs associated with them, they receive a gross profit. For example, the main activity of selling goods or services forms income, and the cost of these goods or services forms expense. The difference between them will give the gross profit for the main activity. The same approach applies to determining gross profit from other activities.

It is interesting that in trade, gross profit for core activities is the difference between the selling price of goods and their cost. But for industry, this indicator is calculated more complexly; the cost includes many cost elements that are taken into account according to special rules.

Gross profit is a favorite metric for comparing the performance of different businesses. In addition, it is possible to determine the gross profit from various activities within one enterprise and show the effectiveness of the production of different goods. Gross profit is very popular with bankers when calculating the creditworthiness of a company. However, for the owners of the enterprise, another indicator is more important - net profit.

What is net profit?

The result of all operations in the activities of an enterprise for a certain period is expressed by net profit. It is obtained by reducing gross profit by the amount of all costs paid from it. Such costs are classified according to the rules specified in the laws. In general, this includes income tax, fines that the company must pay, loan interest and other operating expenses.

Gross profit minus these expenses creates the base from which dividends are accrued to the owners (shareholders) of the enterprise.

It is net profit that shows the final effect of the enterprise, which is displayed in the main accounting document - the balance sheet.

Other types of profit - EBIT and EBITDA

The importance of government regulation in the formation of net profit is difficult to overestimate. In essence, the state sets the rules of the game, regulating those costs for which an enterprise has the right to reduce its profit until a tax is charged on it. These costs, as well as the amount of income tax, may differ by state or even by region within each country.

If an analysis of the activities of enterprises operating in different countries or under different taxation systems, then no conclusions can be drawn on the basis of net profit. Therefore, for comparison, other types of profit are used: gross, or specially purified. Refined earnings include EBIT (earnings before interest, taxes, and taxes) and EBITDA (earnings before depreciation, taxes, and interest).

The first acquaintance with the main economic categories of the enterprise took place. Now you know what profit and income are and how revenue differs from them.

Question: ...According to the Law, income tax is calculated on the basis of total annual income, which is reduced by the amount of documented expenses associated with the extraction of income. Is it countable? total income an entrepreneur carrying out several types of activities, by the amount of taxable income received in the taxable period for each transaction?

Question: According to Article 2, subparagraph "d" clause 6 of Article 3, Article 12 and 13 of the Law of the Russian Federation "On income tax for individuals" (as amended on May 4, 1999), income tax is calculated on the basis of total annual income (and not on specific transactions), which is reduced by the amount of documented expenses directly related to the extraction of income from business activities.

Does this mean that in the case when an entrepreneur carries out several different types of activities, for the purposes of income taxation, his gross income includes all receipts from all types of activities carried out by him this year, and expenses, accordingly, include all actually incurred and documented expenses by the payer directly related to the generation of income for all types of activities carried out by him this year, and not separately for each specific transaction?

In other words, is the total taxable income of an entrepreneur calculated based on the amounts of taxable income received by him in the taxable period for each individual transaction?

For example: An entrepreneur carries out several types of activities. When drawing up a declaration for 1998, an income of 50 thousand rubles was received for three types of activities, and a loss of 4 thousand rubles for the fourth. In the declaration, the final figures for all types of activities are obtained by summing up gross income and expenses, so the resulting income is 46 thousand rubles.

Should the amount of this income be increased by the amount of loss from the fourth type of activity, that is, what income should be considered for tax purposes - 46 thousand rubles. or 50 thousand rubles?

MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

The Tax Policy Department has reviewed your letter and reports the following.

In accordance with Article 2 of the Law Russian Federation dated December 7, 1991 N 1998-1 “On personal income tax” (with subsequent amendments and additions), the object of income tax is the total income received in a calendar year. In connection with this circumstance, which determines the payment of tax by individuals, including individual entrepreneurs, is the receipt of income by them in the reporting year.

Individuals are obliged, in accordance with the said Law, to independently keep records of income and expenses related to the receipt of income during the calendar year. Individual entrepreneurs keep records of income and expenses for each type of activity in a book, numbered, laced and sealed by the tax authority.

After the end of the reporting period, gross income is calculated for tax purposes, which must include all income of an individual entrepreneur from performing any type of business activity (clause 42 of the Instruction of the State Tax Service of Russia dated June 29, 1995 N 35). When determining gross income, in our opinion, only those business transactions, for which the individual entrepreneur received income. Documented expenses associated with generating income must be included in the costs of an individual entrepreneur.

Transactions for which expenses incurred exceed income, that is, losses are incurred, are not taken into account for tax purposes.

11/25/1999 Head of Department

tax policy

A.I.IVANEEV

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Any entrepreneurial activity implies making a profit. To calculate the amount of the latter, the amount of income from all types of activities is taken into account. These incomes must be accounted for accordingly.

The income of each economic entity, whether legal entity or individual entrepreneur, are classified:

• according to the conditions of admission;
• according to the nature of receipt.

It is customary to classify the following as income from core activities:

• licensing fees from the owner of intellectual property;
• royalties;
• receivables from counterparties;
• income from product sales;
• income from the provision of services and performance of work;
• rent received by a business from tenants.

Income accounting is carried out according to the rules specified in a particular organization. At the same time, it must comply with the requirements of current legislation. The competent work of an accountant allows you to take into account income from core activities and calculate profits, taxes and contributions correctly. Do you want to optimize accounting processes, obtain guarantees for the quality of accounting, and carry out tax optimization? Outsourcing accounting from the ProfBusinessAccounting company will be a rational solution.

In accounting, income data must be displayed accordingly. Accounting errors distort information about the financial situation of a company. As a result, the effectiveness of management decisions made by management decreases.

Competent accounting of income and expenses allows you to control the financial situation and regulate cash flows. Who should be entrusted with accounting? This could be a full-time or freelance accountant, or an outsourcer. You value your time and money, don't want close attention from the tax side, are they focused on business development? Accounting outsourcing is what you need.

Practice shows that accounting errors most often arise in the process of calculating income. At this stage, it is important to distinguish between actual revenue from the sale of services, goods, rent and accounts receivable.

As for income accounting methods, several are used. Income can be taken into account:

• according to the accumulation method (based on the fact of a financial and business transaction);
• as work progresses;
• upon implementation;
• upon the exchange of financial documents;
• upon payment.

In accounting, income from core activities is displayed in accounts and sub-accounts of groups 90 and 93. The final amounts of income in the format of absolute values ​​are indicated in monetary units.

Is there a need to optimize accounting or restore it? Contact professional specialists ProfBusinessAccount company. We offer cooperation on favorable terms. Its format and cost are selected individually for each client.

Cooperation with a specialized company will allow you to optimize the costs of maintaining your accounting department and minimize tax risks. Competent, professional accounting of income will allow you to obtain reliable information about the finances of a legal entity.

Total income

TOTAL INCOME

(total income) The taxpayer's income received from all sources. It is often called statutory total income, which consists of income derived from sources based on current year income and income from other sources based on past years' income. This artificial concept is used in calculating personal income taxes for a given period.

Finance. Dictionary. 2nd ed. - M.: "INFRA-M", Publishing House "Ves Mir". Brian Butler, Brian Johnson, Graham Sidwell and others. General editor: Ph.D. Osadchaya I.M.. 2000 .

Total income

The taxpayer's income received from all sources. It is often called statutory total income, which consists of income derived from sources based on current year income and income from other sources based on past years' income. This artificial concept is used in calculating personal income tax for a given period.

Terminological dictionary of banking and financial terms. 2011 .

See what “Total income” is in other dictionaries:

- (total income) The taxpayer’s income received from all sources. It is often called statutory total income, which consists of income received from sources based on current year income and... ... Dictionary of business terms

Total income- Total sales revenue and other income for a certain period. In the UK the term turnover is used... Investment Dictionary

The bank's total income from interest on loans. Dictionary of business terms. Akademik.ru. 2001 ... Dictionary of business terms

Income in the future- Total income after the specified period... Investment Dictionary

gross income- The total annual income of an enterprise (firm), calculated in monetary terms, received as a result of the production and sale of products, goods, and services. V.d. is defined as the difference between monetary proceeds from the sale of goods and material... ... Technical Translator's Guide

BANK INCOME, GROSS INTEREST- total interest income of the bank on loans...

POPULATION INCOME, CASH- the part of personal income remaining after deducting individual taxes (primarily income taxes); total cash income, which is available to the population, using it at their discretion. Cash income is also called disposable income... Large economic dictionary

INCOME, GROSS- the total annual income of an enterprise (firm), calculated in monetary terms, received as a result of the production and sale of products, goods, and services. V.d. is defined as the difference between monetary proceeds from the sale of goods and material... ... Great Accounting Dictionary

annual income- Total return from an investment for the year, including dividends or interest received and capital appreciation (or reduction), but excluding commissions and other transaction costs and taxes. Accumulated annual income (compound… … Financial and investment explanatory dictionary

Net income- The total income of the company, which includes income taking into account (less) operating expenses, depreciation, interest, taxes and other expenses... Investment Dictionary

Question: An entrepreneur carries out several types of activities. At the end of the year, an income of 100 thousand rubles was received for one type of activity, and a loss of 20 thousand rubles for another. When filling out the declaration, the resulting income is 80 thousand rubles. Should income tax be calculated on the amount of income for each type of activity and the amount of total income increased by the amount of loss from the second type of activity, i.e. what income should be considered for tax purposes - 80 thousand rubles. or 100 thousand rubles?
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Answer: According to Article 2, paragraph "d" clause 6 of Article 3, Articles 12 and 13 of the Law of the Russian Federation "On Income Tax on Individuals" (as amended on January 2, 2000) the object of taxation for individuals is the total income received in a calendar year. In accordance with paragraph "d" clause 6 of Article 3 of this Law of the Russian Federation, the total income received by individuals during the taxable period is reduced by the amount of expenses documented by individuals directly related to the extraction of income from business activities.
According to Article 12 of the said Law, the composition of the entrepreneur’s expenses increases by the amount of expenses incurred in relation to the composition of the costs included in the cost of products (works, services), determined by the Government of the Russian Federation. Losses incurred in the reporting year are not taken into account for tax purposes in the following year.
In paragraph 42 of the Instruction of the State Tax Service of the Russian Federation dated June 29, 1995 N 35 (as amended on April 4, 2000) “On the application of the Law of the Russian Federation “On Personal Income Tax” it is determined that gross income includes all receipts individual from the performance of services or actions performed in favor of or on behalf of individuals and legal entities, regardless of the form and nature of the said services or actions. In this case, the difference between the gross income received during the calendar year and the documented expenses associated with the extraction of this income is considered as total annual income (net income) subject to tax.
Thus, if an entrepreneur carries out several different types of business activities, his taxable income is the difference between gross income, which includes all receipts for all types of activities carried out by him this year, and all documented expenses associated with generating income also for all types of activities , and not separately for each of them.
Our position is confirmed by currently available arbitration practice. In particular, in Resolution No. 7206/98 of 05.10.1999, the Presidium of the Supreme Arbitration Court of Russia indicated that the formation of the expense part of the declaration is carried out by the taxpayer based on the results of the tax period by adding up expenses for completed transactions, regardless of whether income was received for each of them separately or a loss .
In connection with the above and based on the data given in the question, we believe that income in the amount of 80 thousand rubles is subject to taxation.
06/30/2000 S.V. Supotnitsky

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