Use of the organization's net profit. Enterprise profit, distribution and use of profits

Profits are distributed between the state, the owners of the enterprise and the enterprise itself. The proportions of this distribution significantly affect the efficiency of the enterprise, both positively and negatively.

The relationship between enterprises and the state regarding profits is based on profit taxation.

The distribution of profits between the owners of the enterprise and the enterprise itself depends on many factors.

During the period of technical re-equipment and modernization of production, development of new types of products, the enterprise is in dire need of financial resources and the owners must provide them first of all. This does not mean that they should not receive a return on their invested capital. It just has to be deferred expectations, i.e. owners will be able to receive their dividends after production reaches its design capacity. Dividends during the waiting period should not be less than the interest rate on a bank deposit for the same period, but less than the rate for the loan.

In an enterprise, profit after taxes and dividends is subject to distribution. The distribution of this part of the profit reflects the process of formation of target financial funds and reserves of the enterprise.

Trust funds formed from net profit, are an important component its financial system. They are intended to finance production, technical, social, scientific and other development, as well as solving other problems of a current or future nature. The enterprise has the right (directly or by decision of the owner) to independently determine the composition, size, procedure for the formation and expenditure of these funds.

The distribution of profits remaining at the disposal of the enterprise is regulated internal documents enterprises, as a rule, accounting policies.

Some aspects of the distribution process are fixed in the enterprise charter. In accordance with the charter, the enterprise creates accumulation, consumption, social sphere. If funds are not created, then cost estimates for production development, social needs and financial incentive workers.

The accumulation fund finances research, development and technological work, development of new products, modernization, technical re-equipment and reconstruction of existing production. The accumulated profit can be directed by the enterprise to authorized capitals other enterprises, long-term and short-term financial investments.

Profit involved in the accumulation process refers to profit that increases the value of the enterprise's property.

Distribution of profits for social needs includes expenses for the operation of social facilities, holding recreational and cultural events, etc.

Consumption fund funds are used for the purpose of material motivation of enterprise employees (payment of bonuses, provision of financial assistance, one-time benefits, etc.).

Profit used for consumption does not increase the value of the enterprise's property.

If the profit is not spent, then it remains in the enterprise as retained earnings of previous years and increases the size of the enterprise's equity capital. The presence of retained earnings increases the financial stability of the enterprise and indicates the presence of a source for subsequent development.

The formation and growth of the reserve fund, contributions to which are of a priority nature, are reduced financial risks enterprises, as they create the opportunity to cover unforeseen expenses and losses.

More on the topic Distribution and use of profits in an enterprise:

§ 4. Legal requirements for the distribution and use of profits of state and municipal unitary enterprises

The mechanism of influence of finance on the economy, on its economic efficiency is not in production itself, but in distributed monetary relations. The nature of their impact on production depends on how specific the distribution system is, the forms and methods of its organization correspond to the objective needs of society, the level of development of production, the economic interests of the state, enterprise and each individual employee. If this correspondence is violated, the process of increasing production efficiency begins to be hampered.

Profit distribution is an integral and inseparable part common system distribution relations and, perhaps, on a par with the distribution of income individuals, the most important one.

Specific forms and methods of profit distribution are constantly changing and developing with the growth of social production.

The object of distribution is the total (balance sheet) profit of the enterprise. The total profit of an enterprise synthesizes all the diverse results of its economic and financial activities. When distributing and using it, multiple regulations based on the Income and Profits Tax Law, the Enterprise Law, the Joint Stock Company Law and other regulations must be taken into account.

The distribution of profits is understood as directing it to generate state budget revenues and satisfy the needs of enterprises for funds to expand production and provide material incentives to workers.

The distribution of profits is legally regulated in that part of it that goes to budgets of different levels in the form of taxes and other obligatory payments. Determining the directions of expenses of the profit remaining at the disposal of the enterprise, the structure of the items of its use is within the competence of the enterprise.

The principles of profit distribution can be formulated as follows:

– profit received by an enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise as an economic entity;

– profit for the state goes to the relevant budgets in the form of taxes and fees, the rates of which cannot be arbitrarily changed. The composition and rates of taxes, the procedure for their calculation and contributions to the budget are established by law;

– the amount of the enterprise’s profit remaining at its disposal after paying taxes should not reduce its interest in increasing production volumes and improving the results of production, economic and financial activities;

– the profit remaining at the disposal of the enterprise is primarily directed to accumulation, ensuring its further development, and only the rest - to consumption (Fig. 6.19).

Rice. 6.19. Distribution of the organization's total profit

Optimal distribution and efficient use has profit important to expand and increase the property of enterprises, strengthen economic accounting, strengthen the material interest of workers in fulfilling financial plans economic activity and increasing business efficiency.

The share of profit transferred by business entities to the budget for national needs is determined by the current tax legislation.

From the profit of the enterprise they pay:

- property tax,

– income tax

– and local taxes.

The object of taxation is taxable profit, calculated on the basis of the amount of profit from the sale of goods (work, services), other assets (including fixed assets, inventory, intangible assets), property rights and income from non-sales operations, reduced by the amount of expenses for these operations.

When determining taxable profits, the following are not taken into account:

Profit received from dividends and income equivalent to them, subject to income tax, defined as the difference between accrued dividends and income equivalent to them and income tax;

Profit (loss) from lottery activities;

profit (loss) received from the gambling business;
profit (loss) received from the sale (redemption) of securities.

The procedure for distributing and using the profit of an enterprise is fixed in its charter and is determined by regulations, which are developed by the relevant economic services and approved by the governing body of the enterprise.

In an enterprise, profit after taxes and dividends is subject to distribution. Some taxes are also paid from this profit to local budgets and economic sanctions are collected.

The distribution of this part of the profit reflects the process of formation of funds and reserves of the enterprise to finance the needs of production and social development.

In a market economy, the state does not interfere in the process of distribution of profits remaining at the disposal of the enterprise after paying taxes. However, by providing tax incentives, it stimulates the use of profits for capital investments and housing construction, for charitable purposes, financing of environmental protection measures, expenses for the maintenance of social facilities and institutions, and for carrying out research work. Minimum size established by law reserve capital for joint-stock companies, the procedure for creating a reserve for doubtful debts and for the depreciation of securities is regulated.

In accordance with the charter of the enterprise, accumulation and consumption funds are formed, as well as reserve funds intended to finance unforeseen expenses and provide financial stability enterprises (Figure 6.20).

Rice. 6.20. Distribution of net profit among target funds

The funds from these funds have a strictly designated purpose. Their use occurs on the basis of cost estimates, which are developed by the financial service of the enterprise and approved in the prescribed manner. If funds are not created, then in order to ensure plans for the disposal of funds, cost estimates for the development of production and social needs are drawn up labor collective, material incentives for employees and charitable purposes.

The funds from the accumulation fund are intended to finance expenses related to the scientific, technical and social development of the team.

The funds from the consumption fund are used for one-time incentives for distinguished employees when performing particularly important tasks; providing one-time assistance; construction and major renovation residential buildings, kindergartens; subsidies for food in canteens; for food in kindergarten, health camp for schoolchildren; improvement of cultural and welfare services for workers and other similar activities.

Reserve funds (capital) are formed both due to legal requirements and by decision of enterprises. By law, the reserve fund is formed by foreign enterprises and enterprises with foreign investments.

All profit remaining at the disposal of the enterprise is divided into two parts. The first part increases the property of the enterprise and participates in the accumulation process, the second characterizes the share of profits used for consumption. At the same time, it is not necessary to use all the profit aimed at accumulation. The remainder of the profit not used to increase property has a reserve value and can be used in subsequent years to cover possible losses and finance various costs (Fig. 6.21).

Rice. 6.21. Distribution of the organization's profits

Retained earnings in a broad sense - both profit used for accumulation and retained earnings from previous years indicate the financial stability of the enterprise and the availability of sources for subsequent development.

The distribution and use of profits by non-state owned enterprises have their own characteristics, determined by the organizational and legal form of these enterprises.

For state enterprises, the ratio between these two parts is established by departmental acts in the proportion of 60:40. For non-state enterprises, proportions are not regulated, but compliance with them is important to ensure stable business development.

Introduction…………………………………………………………..…….…..2

Chapter 1. The essence of profit.

1.2. Types and functions of profit………………………………………………………...…..9

1.3. Distribution and use of profits………………………….15

1.4. The role of profit in a market economy……………………………...19

Chapter 2. Analysis of the formation and use of profit of Prima Systems LLC

2.1. Organizational and economic characteristics of Prima Systems LLC………………………………………………………………….…...23

2.2. Analysis of the formation and dynamics of the organization’s profit………..27

Chapter 3. Profit growth factors…………………………………….…..33

Conclusion……………………………………………………………......37

References……………………………………………………….39

Introduction

The relevance of this work lies in the fact that profit is the factor that determines the efficiency of any enterprise, its liquidity, and, as a consequence, the position of the enterprise on modern market goods and services.

The market economy determines specific requirements for the enterprise management system. Profits in market conditions are used not for consumption, but for investments and innovations, which ensure the economic growth of the enterprise and its competitiveness. A faster response to changing economic situations is necessary in order to maintain sustainable financial condition and continuous improvement of production in accordance with changing market conditions. The enterprise independently plans its activities and determines development prospects based on the demand for its products and the need to ensure industrial and social development. One of the independently planned indicators, among others, was profit.

Profit is the final financial result that characterizes the production and economic activities of the entire enterprise, that is, it forms the basis economic development enterprises. Profit growth creates financial basis for self-financing the activities of the enterprise, carrying out expanded reproduction. Due to it, part of the obligations to the budget, banks and other enterprises is fulfilled. Thus, profit becomes the most important for assessing the production and financial activities of an enterprise.

Making a profit is a prerequisite for the functioning of an enterprise. Profit (profitability) evaluates the efficiency of management, profit is the main source of financing for economic and social development; profitability serves as the main criterion for choosing investment projects and programs for optimizing current costs, expenses, and financial investments.

This course work examines the essence of profit, its role in the activities of an enterprise, as well as the procedure for its calculation. In this case, the following tasks are set: studying the essence, types and functions of profit, directions for using profit, as well as consideration of factors influencing profit growth.

Chapter 1. The essence of profit.

In the context of the transition to a market economy, the main role in the system economic indicators profit plays. Profit is the final financial result that characterizes the production and economic activities of the entire enterprise, that is, it forms the basis for the economic development of the enterprise. Profit growth creates a financial basis for self-financing of the enterprise's activities, carrying out expanded reproduction. Due to it, part of the obligations to the budget, banks and other enterprises is fulfilled. Thus, profit becomes the most important for assessing the production and financial activities of an enterprise. It characterizes the estimates of his business activity and financial well-being.

Profit has next value in the activities of enterprises:

In a generalized form, it reflects the results of entrepreneurial activity and is one of the indicators of its effectiveness;

Used as a stimulating factor for entrepreneurial activity and labor productivity;

Acts as a source of financing for expanded reproduction and is the most important financial resource of the enterprise

Due to deductions from profits to the budget, the bulk of the financial resources of the state, regional and local authorities authorities, and their increase largely determines the pace of economic development of the country, individual regions, the increase in social wealth and, ultimately, the increase in the living standards of the population. Profit is the difference between the amount of income and losses received from various business transactions. That is why it characterizes the final financial result of enterprises.

Based on the above, the concept of profit can be formulated as follows: “Profit is the net income of an entrepreneur on invested capital, expressed in monetary form, characterizing his reward for the risk of carrying out entrepreneurial activities, representing the difference between total income and total costs in the process of carrying out this activities."

Profit is generated as a result of sales of products. Its value is determined by the difference between the income received from the sale of products and the costs (expenses) of its production and sale. The total amount of profit received depends, on the one hand, on the volume of sales and the level of prices set for products, and on the other hand, on how well the level of production costs corresponds to socially necessary costs.

All these factors influencing the amount of profit are a function of many conditions. So, firstly, sales volume depends on the efficiency of commercial work: on the ability to create profitable terms to sell their products, i.e. organize advertising, sales, formulate pricing and product policies, etc.; secondly, the level of production costs depends on the rationality of the organization of production and labor, the chosen technology, and the technical equipment of the enterprise.

At the same time, profit at an enterprise depends not only on the sale of products, but also on other types of activities that either increase or decrease it. Therefore, in theory and in practice, the so-called “balance sheet profit” is distinguished. Its name speaks for itself. It consists of profit from sales of products (revenue from sales of products without indirect taxes minus costs (expenses) for production and sales of products) plus non-operating income (income from securities, from equity participation in the activities of other enterprises, from leasing property, etc.) minus non-operating expenses (costs of production that did not produce products, for the maintenance of mothballed production facilities, losses from writing off debts, etc.). Book profit is determined by balancing the total amount of all profits and all losses.

Balance sheet profit includes:

§ profit (loss) from the sale of goods;

§ profit (loss) from the sale of tangible working capital and other assets;

§ profit (loss) from the sale and other disposal of fixed assets;

§ income and losses from foreign exchange differences;

§ income from securities and other long-term financial investments, including investments in the property of other enterprises;

§ expenses and losses associated with financial transactions;

§ non-operating income (losses).

Mandatory payments are made from the balance sheet profit in accordance with tax legislation.

In addition, it stands out gross profit, which represents book profit minus financial result from transactions with fixed assets (funds), intangible assets and other property. In all countries with market economies, profits are taxed. Therefore, in practice, it is customary to distinguish taxable profit, which is gross profit minus income from types of activities exempt from taxation.

As a result, the enterprise, as it is commonly called in theory and in practice, remains so-called net profit. In terms of its value, it represents taxable profit minus income tax.

From net profit, the company pays dividends and various social taxes and creates funds. As a result, retained earnings remain. It is intended for capitalization, i.e. for reinvestment in production. In terms of its economic content, it is one of the forms of reserve of the enterprise’s own resources, ensuring its production development.

The multifaceted nature of profit means that its study must have systems approach. This approach involves analyzing a set of factors of formation, mutual influence, distribution and use.

1) The number of forming factors includes revenue received by the enterprise from various types entrepreneurial activity, including the sale of products, which occupies the main specific gravity, from the sale of other assets, fixed assets. An important component of the forming factors is income from equity participation in other enterprises, including subsidiaries, income from securities, gratuitous financial aid, balance of fines received and paid.

2) Mutually influencing factors include external ones, determined by the financial and credit policy of the state, including taxes and tax rates, interest rates on loans, prices, tariffs and fees, as well as internal ones, including cost, labor productivity, capital productivity, capital-labor ratio, working capital turnover.

3) Distribution factors consist of mandatory payments to the budget and extra-budgetary funds, to banking and insurance funds, voluntary payments, including charities, directing profits into cash funds created in enterprises.

4) Factors of use relate only to those profits that remain in enterprises and commercial organizations. They include the following areas: consumption, accumulation, social development, capital and financial investments, covering losses and other costs.

In market conditions, as world practice shows, there are two main sources of profit.

The first is the monopoly position of the enterprise in the production of a particular product or the uniqueness of the product. Maintaining this source at a relatively high level involves constant product innovation. Here, countervailing forces such as government antitrust policy and growing competition from other enterprises should be taken into account.

The second source is related to production and business activities, and therefore concerns almost all enterprises. The effectiveness of its use depends on knowledge of market conditions and the ability to constantly adapt production development to it. Here, in essence, it all comes down to marketing. The amount of profit in this case depends on:

· firstly, on the correct choice of the production direction of the enterprise for the production of products (choice of products that are in stable and high demand);

· secondly, from creating competitive conditions for the sale of their goods and provision of services (price, delivery times, customer service, after-sales service, etc.);

· thirdly, on production volumes (the greater the sales volume, the greater the amount of profit);

· fourthly, from the range of products and reduction of production costs.

However, making a profit in market conditions is always associated with risk - the threat of losing the invested capital in whole or in part constantly hangs over the enterprise. That is why in theory and in practice the concept of “entrepreneurial profit” is used, which in its value should be greater than the interest received on deposits in the bank.

In its content, the concept of “risk” refers to both economic, commercial and financial activities. To determine risk, two main methods are used: statistical and expert. The statistical basis is based on the techniques of mathematical statistics (calculation of variation, dispersion and standard deviation for indicators of financial and economic activity). These indicators are the profitability of production, products, investments, sales, etc.

It is almost impossible to completely avoid risk in business, but there is a system of methods to mitigate its negative consequences. These include self-insurance (creation of reserve funds), participation in venture capital companies, concluding futures transactions, etc.

Types and functions of profit

The main indicator of profit used to evaluate production and economic activities is: balance sheet profit, profit from sales of manufactured products, gross profit, taxable profit, profit remaining at the disposal of the enterprise (net profit).

The main profit indicators are:

· total profit (loss) of the reporting period - balance sheet profit (loss);

· gross profit;

· profit (loss) from sales of products (works, services);

· profit from financial activities;

· profit (loss) from other non-operating operations;

· taxable profit;

· net profit.

Each enterprise produces four profit indicators that differ significantly in size, economic content and functional purpose. The basis for all calculations is balance sheet profit - the main financial indicator of the production and economic activity of the enterprise. For tax purposes, a special indicator is calculated - gross profit, and on its basis - taxable profit and tax-free profit. The part of the balance sheet profit remaining at the disposal of the enterprise after taxes and other payments have been made to the budget is called net profit. It characterizes the final financial result of the enterprise.

Profit at an enterprise depends not only on the sale of products, but also on other activities that either increase or decrease it. Therefore, in theory and in practice, the so-called “balance sheet profit” is distinguished.

Balance sheet profit (loss) is the amount of profit (loss) from sales of products, financial activities and income from other non-operating operations, reduced by the amount of expenses for these operations. It consists of profit from sales of products (revenue from sales of products without indirect taxes minus costs (expenses) for production and sales of products) plus non-operating income (income from securities, from equity participation in the activities of other enterprises, from leasing property, etc. .p.) minus non-operating expenses (costs for production that did not produce products, for the maintenance of mothballed production facilities, losses from writing off debts).

Main constituent elements balance sheet profit are:

1. Profit from the sale of marketable products is determined by deducting from the total amount of revenue from the sale of products in current prices (excluding VAT and excise taxes) the costs of production and sale of marketable products, included in the cost of production.

2. Profit (or loss) from the sale of other non-commodity products and services is determined similarly, separately for all types of activities, i.e. profit (or loss) of subsidiary rural farms, motor vehicles, logging and other farms that are on the balance sheet of the main enterprise.

3. Profit (or losses) from the sale of fixed assets and other property is calculated as the difference between the proceeds from the sale of this property (less VAT, excise taxes) and the residual value on the balance sheet, adjusted by a coefficient corresponding to the inflation index. The main element of balance sheet profit is profit from the sale of products, performance of work or provision of services. Profit from the sale of property is a financial result not related to the main activities of the enterprise. It reflects profit (losses) on other sales, which include the sale to third parties of various types of property listed on the balance sheet of the enterprise.

4. Profit (or losses) from non-operating income and expenses is determined as the difference between the total amount received and paid:

Fines, penalties and penalties and other economic sanctions;

Interest received on the amounts of funds listed in the accounts of the enterprise;

Exchange rate differences on foreign currency accounts and transactions in foreign currency;

Profits and losses of previous years identified in the reporting year;

Losses from natural Disasters;

Losses from writing off debts and receivables;

Receipts of debts previously written off as bad;

Other income, losses and expenses attributed in accordance with current legislation to the profit and loss account.

At the same time, amounts contributed to the budget in the form of sanctions in accordance with the legislation of the Russian Federation are not included in expenses from non-operating operations, but are included in the reduction of net profit, i.e. profit remaining at the disposal of the enterprise after paying income tax.

Thus, book profit (Pb) can be determined by the formula

Pb = ± Pr ± Pi ± Pv.o,

where Pr is profit (loss) from sales of products, performance of work and services;

Pi - profit (loss) from the sale of enterprise property;

Pv.o – income (loss) from the sale of non-operating operations.

In addition, gross profit is distinguished, which represents balance sheet profit minus or plus the financial result from transactions with fixed assets (funds), intangible assets and other property. Gross profit - part gross income enterprise, firm, which remains with them after deducting all mandatory expenses. It is the amount of profit from the sale of products (works, services), fixed assets, other property of enterprises and income from non-sales operations, reduced by the amount of expenses for these operations.

The gross profit of an enterprise may differ from the balance sheet profit for a number of reasons:

1. Gross profit increases for enterprises that carry out direct exchange or sale of products at prices not higher than cost.

2. When carrying out a direct exchange of fixed assets and other property or the sale of these types of property at prices below their book value, the transaction amount is determined by market value property minus the book value of sold or disposed of property.

3. Revenue in foreign currency is recalculated into rubles at the exchange rate on the day of registration of customs documents for taxation of profits on these transactions

4. Subject to taxation cash, received free of charge from other enterprises in the absence of joint activities.

5. For property received free of charge, its value is estimated not lower than the balance sheet value at which it is registered with the transferring enterprise.

6. Gross profit also takes into account fines and penalties paid (with the exception of the amount of fines and penalties transferred to the budget and extra-budgetary funds).

Gross profit decreases by the following types income (profit):

a) income from equity participation in the activities of other enterprises

b) income from rental and other types of use of property, as well as from intermediary operations and transactions.

c) income legal entities on government bonds and other government securities, as well as income from the provision of services for their placement

d) amounts of profit for which tax benefits are established.

After all of the above adjustments to gross profit, taxable profit remains, on which income tax is paid. In all countries with market economies, profits are taxed. Therefore, in practice, it is customary to distinguish taxable profit, which is gross profit minus deductions to reserve funds, income from types of activities exempt from taxation, and deductions for capital investments. Taxable profit is determined by a special calculation. It is equal to book profit reduced by the amount:

· contributions to reserve and other similar funds, the creation of which is provided for by law (until the size of these funds reaches no more than 25% of the authorized capital, but not more than 50% of profit subject to taxation);

· rent payments to the budget;

· income from securities and from equity participation in the activities of other enterprises;

· income from casinos, video salons, etc.;

· profits from insurance activities;

· profits from individual banking operations and transactions;

· exchange rate differences resulting from changes in the exchange rate of the ruble in relation to foreign currencies quoted by the Central Bank of the Russian Federation;

· profits from the production and sale of industrial agricultural and hunting products.

As a result, the enterprise, as it is commonly called in theory and in practice, remains with the so-called net profit of the enterprise, i.e. profit remaining at his disposal. It is defined as the difference between book profit and the amount of income taxes, rental payments, export and import taxes, and taxes on the excess of actual labor costs compared to the norm.

From net profit, the company pays dividends and various social taxes, and forms funds. As a result, there remains unused profit, or a loss not covered by money. Net profit is used for production development, social development, material incentives for employees, the creation of a reserve fund, payment to the budget of economic sanctions related to the enterprise's violation of current legislation, for charitable and other purposes.

An integral feature market economy is the appearance of consolidated profits. Consolidated profit is the profit summarized from the financial statements of the activities and financial results of parent and subsidiary enterprises. Consolidated financial statements are a combination of statements of two or more business entities that are in certain legal and financial-economic relationships. The need for consolidation is determined economic feasibility. It is beneficial for entrepreneurs, instead of one large company, to create several smaller enterprises, legally independent, but economically interconnected, because in this case, savings on tax payments can be obtained. In addition, due to the fragmentation and limitation of legal liability for obligations, the degree of risk in doing business is reduced, and greater mobility is achieved in the development of new forms of capital investment and sales markets.

Firstly, profit is a criterion and indicator of the efficiency of an enterprise. The very fact of making a profit indicates the effective operation of the enterprise.

Secondly, profit performs a stimulating function. Profit is the main source of increase in equity capital, the basis of investment, dividend and social policy enterprises

Thirdly, profit characterizes the effectiveness of the implementation of any investment decision in an enterprise (for example, the introduction advanced technology, development of new products, improvement of production organization, effectiveness of marketing research).

Fourthly, profit is the source of revenue generation for budgets of all levels. It goes to budgets in the form of taxes, as well as economic sanctions and is used for various purposes, defined consumable part budgets.

Distribution and use of profits

The relationship between enterprises and the state regarding profits is based on profit taxation.

For tax purposes, balance sheet profit is adjusted in accordance with tax standards (Regulations on the composition of costs included in the cost of production, and others.). It should be noted that the concept of net profit in Russia does not correspond to the concept of net profit by international standards; “our” net profit is not net, but includes significant expenses (consumption funds, social sphere, etc.), which is unacceptable by Western standards.

From the profits remaining at the disposal of the enterprise (net profit), in accordance with the law and constituent documents, the enterprise can create an accumulation fund, a consumption fund, a reserve fund and other special funds and reserves. This profit is used for capital investments and the growth of fixed and working capital; to cover losses of previous years, for contributions to reserve capital, for social expenses; as well as for the payment of dividends and income.

In this case, the accumulation fund refers to funds aimed at the production development of the enterprise, technical re-equipment, reconstruction, expansion, development of production of new products, construction and renewal of fixed production assets, development of new equipment and technologies in existing organizations and other similar purposes provided for by the constituent documents enterprises (for the creation of new property of the enterprise).

Capital investments for production development are mainly financed from savings funds. At the same time, making capital investments at the expense of one’s own profits does not reduce the size of the accumulation fund. There is a transformation of financial resources into property values. The accumulation fund decreases only when its funds are used to pay off losses of the reporting year, as well as as a result of writing off from the accumulation funds expenses that were not included in the initial cost of fixed assets put into operation.

Consumption funds are understood as funds allocated for the implementation of measures for social development (except for capital investments), material incentives for the enterprise staff, the purchase of travel tickets, vouchers to sanatoriums, one-time bonuses and other similar events and work that do not lead to the formation of new property of the enterprise.

The consumption fund consists of two parts: the wage fund and payments from the social development fund. The wage fund is the source of wages, all types of remuneration and incentives for employees of the enterprise. Payments from the social development fund are spent on recreational activities, partial repayment of loans for a cooperative, individual housing construction, interest-free loans to young families and other purposes provided for by measures for the social development of work collectives.

The reserve fund is intended to ensure financial stability during a period of temporary deterioration in production - financial indicators. It also serves to compensate for a number of monetary costs arising in the process of production and consumption of products.

To increase production efficiency, it is very important that when distributing profits, optimality in the amount of deductions is achieved.

The standards for deductions from profits to special-purpose funds are established by the enterprise itself in agreement with the founder. Deductions from profits to special funds are made quarterly. The amount of deductions made from profits is used to redistribute profits within the enterprise: the amount of retained earnings decreases and the funds and reserves formed from it increase. This profit is used for capital investments and the growth of fixed and working capital; to cover losses of previous years, for contributions to reserve capital, for social expenses; as well as for the payment of dividends and income.

The profit remaining at the disposal of the enterprise is used by it independently and is directed to the further development of business activities. No authorities, including the state, have the right to interfere in the process of using the net profit of an enterprise. In accordance with this, as they are received, the net profit of enterprises is directed to:

To finance R&D, as well as work on the creation, development and implementation of new equipment;

To improve technology and production organization;

For equipment modernization;

Improving product quality;

Technical re-equipment;

Reconstruction of existing production.

Net profit is a source of replenishment of own working capital. In addition, it is used to pay interest on loans received to replenish the lack of own working capital, to purchase fixed assets, as well as to pay interest on overdue and deferred loans. Some types of fees and taxes are paid from net profit, for example, a tax on the resale of cars, computer equipment and personal computers, a fee on transactions for the purchase and sale of currency on exchanges, a fee for the right to trade, etc.

Providing production, material and social needs at the expense of net profit, the enterprise must strive to establish an optimal balance between the accumulation and consumption fund in order to take into account market conditions and at the same time stimulate and encourage the results of the work of the enterprise's employees. The profit remaining at the disposal of the enterprise not only serves as a source of financing for production and social development, as well as material incentives, but is also used in cases of violation by the enterprise of current legislation to pay various fines and sanctions. Thus, fines are paid from net profit for non-compliance with environmental protection requirements from pollution, sanitary standards and rules. If regulated prices for products (works, services) are increased, the profit illegally obtained by the enterprise is recovered from the net profit.

In cases of concealment of profits from taxation or contributions to extra-budgetary funds, penalties are also collected, the source of payment of which is net profit. An economic entity independently determines the directions for using profits, unless otherwise provided by the Charter.

The main requirement for the system of distribution of profits remaining at the enterprise is that it must provide financial resources for the needs of expanded reproduction based on establishing an optimal ratio between funds allocated for consumption and accumulation.

When distributing profits and determining the main directions for its use, the state of the competitive environment is first taken into account, which may dictate the need to significantly expand and update the production potential of the enterprise. In accordance with this, the scale of deductions from profits to production development funds is determined, the resources of which are intended to finance capital investments, increase working capital, support research activities, introduce new technologies, transition to progressive labor methods, etc.

Figure 1.1 - Main directions of profit distribution

An important aspect of profit distribution is the determination of the proportion of division of profit into capitalized and consumed parts, which is established in accordance with the constituent documents, the interests of the founders, and is also determined depending on the business development strategy.

In accordance with the charter, enterprises can draw up cost estimates financed from profits or create special-purpose funds. The estimate of expenses financed from profits includes expenses for production development, social needs of the workforce, material incentives for employees and charitable purposes. Costs associated with production development include the following:

for research, design, engineering and technological work;

financing the development and development of new types of products and technological processes;

costs of improving technology and organizing production;

equipment modernization;

costs associated with technical re-equipment and reconstruction of existing production, expansion of enterprises.

This same group of expenses includes the costs of repaying long-term bank loans and interest on them. Costs for environmental protection measures are also planned here.

Distribution of profits for social needs includes expenses:

for the operation of social and domestic facilities on the balance sheet of the enterprise;

financing the construction of non-production facilities;

organization and development of subsidiary farming;

holding recreational, cultural and mass events.

Costs of material incentives include one-time incentives for completing particularly important production tasks, payment of bonuses for the creation, development and implementation of new equipment, costs of providing material assistance to workers and employees, one-time benefits to retiring labor veterans, pension supplements, employee compensation increase in the cost of food in canteens and buffets of the enterprise due to increased prices.

All profit remaining at the disposal of the enterprise is divided into two parts. The first increases the property of the enterprise and participates in the accumulation process. The second characterizes the share of profits used for consumption. At the same time, it is not necessary to use all the profit allocated for accumulation. The remainder of the profit not used to increase property has an important reserve value and can be used in subsequent years to cover possible losses and finance various costs.

Retained earnings in a broad sense, such as profits used for accumulation, and retained earnings from previous years, indicate the financial stability of the enterprise and the presence of a source for subsequent development.

For each organizational and legal form of an enterprise, an appropriate mechanism for distributing profits remaining at the disposal of the enterprise is legally established, based on the characteristics internal device and regulation of the activities of enterprises of relevant forms of ownership.

In any enterprise, the object of distribution is the net profit of the enterprise. This distribution refers to the direction of profit to the budget and by items of use in the enterprise. The distribution of profits is regulated by law in that part of it that goes to the budgets of various levels in the form of taxes and other obligatory payments. Determining the directions for spending the profits remaining at the disposal of the enterprise, the structure of the funds being formed, and the process of their use are within the competence of the enterprise itself.

The state does not establish any standards for the distribution of profits, but through the procedure for providing tax incentives, it stimulates the direction of profits for innovation, capital investments of a production and non-production nature, for charitable purposes, financing environmental protection measures, expenses for the maintenance of facilities and institutions in the non-production sphere, etc. Legislation limits the size of an enterprise's reserve fund and regulates the procedure for forming a reserve for doubtful debts.

Net profit can be used to pay dividends, form reserve capital, increase authorized capital, repay losses of previous years and other purposes. Contributions of enterprises from profits as contributions of founders to the creation of the authorized capital of other enterprises, funds transferred to unions, associations, concerns of which the enterprise is part are also considered the use of profits for development.

The procedure for the distribution and use of the enterprise’s profits is fixed in its constituent documents and is determined by the regulations, which are developed by the relevant divisions of economic and financial services and approved by the governing body of the enterprise.

The first chapter of the course work examines the theoretical foundations of profit: the essence in economic terms, the formation of enterprise profit, as well as its distribution and use. In a market economy, making a profit is the immediate goal of production. Profit creates certain guarantees for the further existence and development of the enterprise. Profit growth creates a financial basis for self-financing of the enterprise's activities, carrying out expanded reproduction. Due to it, part of the obligations to the budget, banks and other enterprises is fulfilled. Profit becomes the most important for assessing the production and financial activities of an enterprise. It characterizes the estimates of his business activity and financial well-being. An enterprise has the right to decide for itself for what purposes and in what amounts to allocate the profit remaining after paying taxes to the budget and other obligatory payments and deductions.

Profit distribution refers to the direction of profit to the budget and by items of use in the enterprise. The profit remaining at the disposal of the organization is used by it independently and directed to the further development of business activities. Receiving profit, the enterprise solves the problems of its future use in accordance with the goals and objectives of development.

The nature of profit distribution has a great influence on the results of the enterprise and is determined by the following basic provisions:

1. Distribution of profits directly realizes an increase in the level of well-being of the owners of the enterprise, forms the proportions between current payments of income on capital (in the form of dividends, interest, etc.) and the growth of these incomes in the coming period (by ensuring an increase in invested capital). Capital owners independently form these areas.
2. Distribution of profit is the main tool for influencing the growth of the market value of an enterprise and is manifested in ensuring capital growth in the process of capitalizing part of the distributed profit.
3. The proportions of profit distribution determine the pace of implementation of the enterprise’s development strategy in the process of the enterprise’s investment activities. The volume of this activity is determined by the possibilities of generating financial resources, primarily from internal sources. Profits reinvested in the distribution process are the main of these internal sources.
4. The nature of profit distribution is important factor investment attractiveness of the enterprise. The level of dividends or other forms of income paid by an enterprise is one of the forms of assessment that determines the result of the upcoming issue of shares and the increase in the value of these shares on the stock market.
5. Distribution of profits is a form of influence on the labor activity of personnel. The volumes and forms of profit participation determine the level work motivation workers, increased productivity and reduced staff turnover.
6. The proportions of profit distribution form the level of additional social protection of personnel by supplementing government forms social protection.
7. The nature of the distribution of profits affects the level of the current solvency of the enterprise; with a large volume of profit payments for consumption purposes to the owners and personnel of the enterprise, the level of solvency of the enterprise in the current period may decrease significantly.

Profit distribution is carried out in accordance with the developed policy, the formation of which is sufficient challenging task. The profit distribution policy should reflect the requirements of the overall development strategy of the enterprise, ensure an increase in its market value, form the volume of investment resources, and ensure the interests of owners and staff. An economically sound profit distribution system must, first of all, guarantee the fulfillment of financial obligations to the state and maximally provide for the production, material, and social needs of the enterprise. The main goal of the profit distribution policy remaining at the disposal of the enterprise is to optimize the proportions between its capitalized and consumed parts. Based on this goal, the following tasks are solved:

1. ensuring that owners receive required norm return on invested capital;
2. ensuring the priority goals of the strategic development of the enterprise at the expense of the capitalized part of the profit;
3. ensuring stimulation of labor activity and additional social protection of personnel;
4. ensuring formation in required sizes reserve and other funds of the enterprise.

Taking into account the implementation of these main tasks, the process of profit distribution is carried out on the following principles:

a) the connection between the distribution policy and the general task of managing the profit of the enterprise, because distribution of profit of the reporting period is at the same time a process of ensuring the conditions for generating profit for the coming period;
b) priority of taking into account the interests and mentality of the owners of the enterprise. The profit generated by the enterprise and remaining at its disposal after taxes belongs to its owners, therefore, in the process of its distribution, the priority of areas for its use is determined by them. The mentality of owners can be aimed at obtaining high current income or at ensuring high growth rates of invested capital, determining the main proportion of profit distribution - between the consumed and capitalized parts. These proportions may change over time due to changes in the external and internal conditions of the enterprise;
c) stability of the profit distribution policy. The principles of profit distribution should be long-term in nature, which is especially important when making investment decisions for large joint-stock companies with a large number of owners;
d) predictability of the profit distribution policy. If it is necessary to change the main proportions of profit distribution due to adjustments to the enterprise development strategy, or for other reasons, all investors must be notified in advance;
e) assessing the effectiveness of the developed profit distribution policy. The assessment is carried out using key indicators - the profit capitalization ratio, the profit payout ratio to owners (dividend payments), etc.

Distribution of net profit is one of the areas of intra-company planning, the importance of which is increasing in a market economy. The procedure for the distribution and use of profit at the enterprise is fixed in the charter of the enterprise and is determined by the regulations, which are developed by the relevant departments economic services and approved by the governing body of the enterprise. In accordance with the charter of the enterprise, estimates of expenses financed from profits can be drawn up, or special-purpose funds can be formed: accumulation funds (production development fund or production and scientific-technical development fund, social development fund) and consumption funds (material incentive fund).

Reserve capital (reserve fund) is created and replenished from profits only in joint-stock companies and limited liability companies. No more than 50% of the amount of profit subject to taxation can be allocated to the reserve fund. The funds of this fund have a designated purpose - to cover unforeseen losses, compensate for risk, and other expenses arising in the process of economic activity and in the distribution of profits to various funds of the organization. The existence of a reserve fund determines the possibility of paying dividends on shares in the event of a lack of net profit.

The accumulation fund, in turn, includes a production development fund (production and scientific and technical development) and a social development fund.

The consumption fund (material incentive fund) is intended for one-time material incentives for employees; payment of bonuses, benefits and pension supplements, etc.

The decision on profit distribution is approved supreme body enterprise management ( general meeting shareholders, board of founders, etc.).

Expenses associated with the development of production include expenses for research, design, development and technological work, financing the development and development of new products and technological processes, expenses associated with technical re-equipment, expansion of the enterprise, environmental protection measures, expenses for paying off long-term loans. The accumulated profit can be directed to the authorized capital of other enterprises, long-term and short-term financial investments, and transferred to higher organizations, concerns, associations, and unions.

Distribution of profits for social needs includes expenses for the operation of social facilities, financing the construction of non-production facilities, and holding recreational and cultural events.

Material incentives include payment of bonuses for achievements in work, provision of material assistance, one-time benefits, compensation for the cost of food.

All profit remaining at the disposal of the enterprise is divided into profit that increases the value of the property, i.e. participating in accumulation and profit directed to consumption, which does not increase the value of property. If the profit is not spent, it remains as retained earnings from previous years and increases the size of its own

capital. The presence of such profit indicates the presence of a source for further development.

The relationship between enterprises and the state regarding profits is based on profit taxation.

It is significant in Russian legislation that income tax is not imposed on the profit that reflects the results of financial and economic activities and is shown in the financial statements. The initial basis for calculating taxable profit is gross profit as the algebraic sum of profit from the sale of products (work, services), profit (loss) from the sale of property and income from the balance of income and expenses from non-sales operations. Next, gross profit is adjusted to the amounts of gratuitously received valuables, amounts of overexpenditure on limited cost items, the difference between the amount of sales revenue calculated at market and actual prices (when selling products at prices below cost), shortages written off as losses, amount differences, etc. Thus, the profit subject to taxation differs markedly from the actual financial result of business activities. With such adjustments, there are often cases when the calculated income tax exceeds the amount of book profit. Consequently, the source of payment of such tax is, together with profit working capital.

In addition, there are frequent cases of application of economic sanctions to enterprises that have violations in the calculation of gross and taxable profits (in the terminology of the Income Tax Law).

Now let's look at where all the company's profits go. The distribution and use of profits is a complex process that ensures both the needs of entrepreneurs and the generation of state revenues. The profit distribution mechanism should be structured in such a way as to contribute in every possible way to increasing production efficiency and stimulating the development of new forms of management.

Currently, Russia uses the tax method of profit distribution (previously, the residual and normative-target methods were in effect).

The principles of profit distribution under the tax method can be formed as follows:

1. Profit received by an economic entity is distributed between the state and the enterprise.
2. Profit for the state goes to the relevant budgets in the form of taxes and fees, the rates of which are established by law and cannot be changed.
3. The amount of profit remaining after taxes should not reduce his interest in increasing production volumes and improving the results of financial and business activities.
4. The profit remaining at the disposal of the enterprise is primarily directed towards accumulation, ensuring its further development and only the rest for consumption.

The object of distribution is profit before tax (balance sheet) profit. Its distribution means the direction of profit to the budget, and according to items of use in the enterprise. Only the portion of profits going to the budget is regulated by law. Determining the directions for spending the profits remaining at the disposal of the enterprise is within the competence of the organization. The initial basis for calculating taxable profit is profit before tax, which is adjusted by the amount of values received free of charge, the amount of overexpenditure on limited cost items, the difference between the amount of sales revenue calculated at market and actual prices (when sold at prices below cost), written off to losses, shortages, etc. With such adjustments, there are often cases when the calculated income tax exceeds the amount of book profit. Consequently, the source of payment is also working capital. The distribution between the enterprise and the owners should take into account the current situation of the enterprise and the prospects for its development.

The formation of funds and reserves of higher-level organizations (holdings, consortia and financial industrial groups), at the expense of the profits of their member enterprises, is carried out according to the standards established by the higher management body. These standards are individual character and depend on financial situation enterprises.

At the enterprise, net profit is subject to distribution, from which some tax deductions to local budgets and financial sanctions are possible. The state does not directly interfere in the process of distributing net profit, but by providing tax incentives it can stimulate the allocation of resources for capital investments, for charitable purposes, financing environmental activities, and for conducting scientific research. The amount of reserve capital for joint-stock companies is established by law, and the procedure for creating a reserve for doubtful debts is regulated. The distribution of profits is regulated in the statutory documents. In accordance with the charter, funds are created: consumption, savings, social sphere. If funds are not formed, then for the purpose of planned expenditure of funds, estimates are drawn up for the development of production, social needs, material incentives for employees, and charitable purposes.

Profit capitalization is the transformation of financial assets into capital. Profits used for investment (capital investments) help accelerate economic growth, thereby expanding the possibilities for future consumption.

Factors influencing the distribution and use of profits.

Factors influencing the proportions and efficiency of profit distribution are different. One group of factors determines the prerequisites for the growth of the capitalized part of the profit, the other inclines management decisions in favor of increasing the share of the consumed part of it. Based on the nature of their occurrence, all factors influencing the distribution of profit can be divided into two main groups:

I. External factors determine the boundaries of the formation of proportions of profit distribution (determined by the external conditions of the enterprise’s activities). These include:

1. Legal restrictions, i.e. legislative norms, defining general financial and procedural issues related to the distribution of profits. They form the priority of certain areas of its use (tax and other deductions), establish regulatory parameters for this use (rates of taxes, fees and other mandatory deductions from profits, rates of minimum contributions to the reserve fund, etc.) and other conditions.
2. Tax system, i.e. specific rates of individual taxes and a system of tax benefits, which significantly affects the proportions of profit distribution.
3. The average market rate of return on invested capital is a criterion management decisions, showing the effectiveness of the proportions of consumption and reinvestment of profits.
4. Alternative external sources of formation of financial resources determine the proportions of using profits either for investment purposes or for consumption purposes.
5. The inflation rate shows the risk of depreciation of future income, creates the tendency of owners to increase current payments or, with inflation-protected products, to ignore this factor.
6. The stage of the commodity market, if there is an upswing, makes it possible to obtain in the coming period a higher rate of return on reinvested capital than in previous periods.
7. “Transparency” of the stock market makes it possible to calculate the consequences of management decisions regarding the proportions of profit distribution, reinvestment or payment of dividends.

II. Internal factors have a decisive influence on the proportions of profit distribution, since they allow them to be formed in relation to the specific conditions and results of the management of a given enterprise (determined by the peculiarities of the economic activities of a given enterprise). These include:

1) The mentality of the owners of the enterprise, which forms a specific type of policy for the distribution of profit of the enterprise. Depending on their preference, the owners of an enterprise either seek to receive dividends or to reinvest capital in their own or someone else’s enterprise.
2) Level of profitability of activities. With a low level of profitability of economic activity, and, accordingly, a smaller amount of distributed profit, the formation of proportions for distribution of profit is significantly limited. The enterprise reserves part of its profit for necessary payments (formation of a reserve fund, necessary forms of social protection, level of dividend payments on preferred shares, etc.). The remaining part of the profit and its impact on the level of profitability of business activities is negligible.
3) Investment opportunities for the implementation of highly profitable projects if they are present in the enterprise’s portfolio, the opportunity to implement them in short time increases the share of capitalized profits.
4) The need to accelerate the completion of initiated investment programs and projects. In conditions of increasing competition, changing market conditions, the need to quickly complete the transition to new technologies and address other areas of strategic development of the enterprise, one should refuse to use most of the profit in favor of its capitalization.
5) Alternative internal sources of formation of financial resources (depreciation charges, the amount of sales of unused machinery and equipment, the amount from the sale financial assets etc.) can be used to increase the volume of operating activities, and most profits for consumption purposes. If profit is the predominant internal source of financial resources and in conditions of low access to external conditions financing, then the share of the capitalized part of the profit should increase.
6) Stage life cycle The enterprise, depending on the early or mature level, provides a smaller or larger amount of income payments to the owners of the enterprise and personnel, because at the stage of the early life cycle, the enterprise needs more investment needs for development, and at the more mature stage there are more great opportunity attract external sources.
7) The level of risks of ongoing operations and activities affects the formation of reserve and other insurance funds. Without ensuring a minimum internal insurance fund for high-risk activities of the enterprise, the threat of bankruptcy of the enterprise increases, therefore the enterprise must send most of its profits to the formation of insurance funds.
8) The level of management concentration depends on the share of one’s own capital, because When attracting capital from external sources, loss of financial independence is possible. To avoid this situation in the process of profit distribution, the level of its capitalization must be significantly increased for the owners to have a real influence on the management of the enterprise.
9) The number of personnel and the current programs for their participation in profits forms the internal proportions of the distribution of the consumed part of the profit between the owners and personnel of the enterprise. The higher the number of employees, the greater the share of the consumed part of the profit.
10) The level of current solvency of the enterprise has a great influence on the distribution of profits, because in conditions low level the current solvency of the enterprise, the high volume of urgent financial obligations, it cannot direct large amounts of distributed profit to consumption, because it can lead to a significant decrease in the level of liquidity of assets, an increase in the threat of bankruptcy. A decrease in the level of solvency is more dangerous than a decrease in the level of dividend payments.

The principles of distribution and use of profit and the factors influencing it make it possible to formulate a specific type of profit distribution policy at the enterprise, which makes it possible to most fully satisfy the goals and take into account the development opportunities of the enterprise in the coming period.

Use of the organization's net profit. Enterprise profit, distribution and use of profits

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