Enterprise profit: concept, meaning, types, functions in a market economy. Profit growth factors

From the work of the enterprise, the stimulating impact on its development, the budgetary formative side of its activities. In order to understand this economic category, you need to understand what profit is. The concept of profit reflects what is received, which is created in the sphere in the form of cash savings. It can be viewed from completely different angles. Profit acts as an economic category, a form of cash savings, a result of economic activity, development, a criterion for selecting investment projects and optimizing current costs.

The profit functions of an enterprise directly depend on the above-mentioned features. The profit received by the enterprise reflects the economic effect obtained in the course of economic and financial activities. These profit functions are characterized by the excess of income received over the enterprise's expenses aimed at carrying out its activities.

Unfortunately, using this indicator it is not always possible to evaluate all aspects of economic activity. That is why the analysis of financial and economic activities is carried out using a whole system of economic indicators. The economic essence of profit is that it reflects the final financial result.

The stimulating functions of profit are related to the fact that it is not only the final result, but also the main element in the formation of financial resources. Any enterprise is interested in its maximum size, since the net profit remaining at its disposal must cover the needs for financing production activities, the social and technical development of the enterprise, and the creation of a material incentive fund. The stimulating function is also manifested in the fact that dividends are paid out of profits to the owners and shareholders of the enterprise.

The budget-forming functions of profit are no less important, since this is one of the sources of formation of different levels; they receive it in the form of taxes and use the funds received to finance the needs of society; state production, investment, social and scientific and technical programs; provision of government functions. Profit on a societal scale is a factor in the social and economic development of the entire state.

There are the following types of profit:

1. Gross - the difference between income from sales of products without VAT, excise taxes, other taxes, fees and the cost of these products. It is a general indicator of effectiveness.

2. From sales - this is reduced by the amount of administrative and commercial expenses. It characterizes the efficiency of activities related to the main production.

3. Accounting (before tax) - profit from sales increased by the amount of other income.

4. Net is reduced by the amount of tax liabilities for the reporting period.

5. Undistributed - the amount of net profit reduced by the amount of distributed profit. The separation of different types is carried out on the basis of the different interests of the persons managing and controlling the work of the organization. For example, the owners of an enterprise consider net profit to be the main indicator, while the state determines profit before tax as the main financial indicator.

The most important economic process is the distribution and use of profits. This process is regulated by law in the part that is intended for deductions to the budget. Determination of ways to spend profits at the disposal of the enterprise is carried out according to the internal regulations of the organization.

Net profit can be used to form reserve capital (fund), pay dividends, repay previous losses, and other payments (financing investments, solving social problems, material incentives for employees).

The financial results of an enterprise are characterized by the amount of profit received and the level of profitability. The greater the profit margin and the level of profitability, the more efficiently production operates.

To generate profit, it is necessary to have a certain level of production development, which will ensure that the total revenue from sales of products exceeds the total costs of production and sales of products.

Profit is the monetary expression of savings created by enterprises of any form of ownership. Profit as an economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity.

Profit is one of the main financial indicators of the plan and assessment of a company’s economic activities. The profits finance activities for scientific, technical and socio-economic development and increase the wage fund. Profit, as the final financial result of a company’s activities, is the difference between the total amount of income and the costs of production and sales of products, taking into account losses from various business operations. So, profit is formed as a result of the interaction of many components, both positive and negative.

Profit=Turnover-Costs,

where Turnover = Number of goods sold * Sales price.

At the enterprise level, in the conditions of commodity-money relations, net income takes the form of profit. In the goods market, enterprises act as relatively isolated commodity producers. Having set the price for the product, they sell it to the consumer, receiving revenue, which does not mean making a profit. When revenue exceeds cost, the financial result indicates a profit. An entrepreneur always sets profit as his goal, but does not always make it. If revenue is equal to cost, this means that it was only possible to reimburse the costs of production and sales of products. If costs exceed revenues, the entrepreneur receives losses.

In a market economy, profit is of great importance. In conditions of market relations, an enterprise must strive to obtain maximum profit, that is, to such a volume that would allow the enterprise not only to firmly maintain a sales position in the market for its products, but also to ensure the dynamic development of its production in a competitive environment.

The desire to make a profit directs commodity producers to increase the volume of production of products needed by the consumer and reduce production costs. For an entrepreneur, profit is a signal indicating where the greatest increase in value can be achieved, creating an incentive to invest in these areas. The amount of profit received by the enterprise depends on the volume of product sales, its quality and competitiveness in the domestic and foreign markets, assortment, level of costs and inflationary processes that inevitably accompany the formation of market relations.

Profit functions:

Profit characterizes the economic effect obtained as a result of the enterprise’s activities;

Stimulating function. That is, profit is both a financial result and the main element of the financial resources of an enterprise;

Profit is one of the sources for the formation of budgets at different levels. It goes to budgets in the form of taxes along with other revenues and is used to finance the satisfaction of joint social needs, to ensure that the state fulfills its functions, etc.;

Expected profit is the basis for investment decisions.

There are accounting, economic and normal profits.

Accounting profit is the difference between a firm's total revenue and explicit costs.

Economic profit is the difference between the firm's total revenue and all costs, including normal profit. Therefore, economic profit is income received in excess of normal profit.

Normal profit indicates that the enterprise compensates for external and internal costs, and the entrepreneur receives income equal to the minimum amount of compensation for entrepreneurial efforts.

Profit at an enterprise depends not only on the sale of finished products, but also on other activities that increase or decrease this profit.

There are balance sheet, gross, taxable and net types of profit.

Balance sheet profit is the sum of profits (losses) of an enterprise from the sale of products and income (losses) not related to its production and sale. The sale of products means not only the sale of manufactured goods that have a natural material form, but also the performance of work and the provision of services. The use of the term “balance sheet profit” is due to the fact that the final financial result of the enterprise is reflected in its balance sheet, compiled at the end of the quarter or year.

Gross profit is the difference between Net sales income and the cost of products or services sold.

In all countries with market economies, profits are taxed. Therefore, in practice it is customary to separate out taxable profits.

Taxable profit is that part of the enterprise's profit that is taxed. To determine it, it is necessary to subtract from the balance sheet profit income tax benefits, deductions for insurance profits, as well as profits taxed under other legislative procedures.

Net profit is the profit that remains at the disposal of the enterprise after paying all taxes, excise taxes and payments to state and local budgets. The company pays dividends and social taxes from net profit.

There are two main sources of profit:

1. Monopoly position in the production of a particular product or the uniqueness of the product. This source is supported by constant improvement of technology, updating of products, and ensuring their competitiveness.

2. The second source of profit is related to his production and business activities. The effectiveness of its use depends on knowledge of market conditions and the ability to adapt production development to constantly changing conditions

Maximum profit is achieved through the interaction of internal and external factors of the company. The main requirement for profit maximization is the profitability of each unit of output. The firm seeks to maximize the difference between total revenue and total costs.

Factors influencing the amount of profit:

Applicable prices.

Changes in the structure of manufactured and sold products. The higher the share of more profitable products, the more profit the enterprise will receive.

Changes in the volume of production and sales of products. The greater the sales volume, the more profit the company will receive, and vice versa.

Change in cost level. The lower the cost, the higher the profit, and vice versa.

Every enterprise, making a profit, strives to maximize it. There are several ways to do this: 1) using limit values, 2) making calculations based on marginal income and its derivatives, 3) generating profit based on break-even conditions, 4) using parametric equations.

One of the main indicators that forms the profit of an enterprise is “income”. This indicator is used in both management and financial accounting. Let's look at the types of income in the next paragraph.

There are several interpretations of the concept of profit. For example, K. Marx in “Capital” defined profit as a modified surplus value that obscures its essence. The author of Capital believed that the source of surplus value was exploitation, the unpaid surplus labor of hired workers. According to Marx, this is an external form of manifestation of the essence of the bourgeois economic system, bourgeois production relations. Thus, exploitation is the main thing that lies at the very basis of the Marxist interpretation of profit.

Modern economic thought views profit as income from the use of factors of production, i.e. labor, land and capital.

Denying profit as a result of exploitation and appropriation of unpaid hired labor, the following definitions of profit can be distinguished:

Firstly, profit is payment for business services.

Secondly, profit is the price for innovation, for talent in managing a company.

Thirdly, profit is a payment for risk, for the uncertainty of the results of entrepreneurial activity. Risk may be associated with the choice of one or another managerial, scientific, technical or social decision, with one or another variant of natural and climatic conditions. The risk may also be associated with unpredictable circumstances - natural disasters, interethnic and interstate conflicts, etc. The results of risk can be radically different - a large profit and, conversely, its reduction or even the ruin of the company.

Fourthly, this is the so-called monopoly profit. It arises when the manufacturer has a monopoly position in the market or when there is a natural monopoly. Monopoly profits are largely unsustainable.

Profit in a market economy is understood as remuneration for the use of a specific factor of production - entrepreneurship. Entrepreneurship is a specific factor, since, unlike capital and land, it is intangible and does not appear in material form. Therefore, from these positions it is quite difficult to quantify the profit received by the enterprise.

In microeconomics, the concept of profit is defined as a value defined as the difference between total revenue and total costs, the difference between income and expenses.

Sources, types of profit and its functions

There are three main sources of profit:

The first source is formed due to 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 constantly updating the product. Here it is necessary to take into account such countervailing forces as the antimonopoly policy of the state and growing competition from other enterprises;

The second source is directly related to production and business activities. It practically applies to all enterprises. The effectiveness of its use depends on knowledge of market conditions and the ability to adapt production development to this constantly changing situation. It all comes down to doing the appropriate marketing.

The amount of profit in this case depends on:

Firstly, from 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 time, customer service, after-sales service, etc.);

Thirdly, on production volumes (the larger the production volume, the greater the amount of profit);

Fourthly, from the structure of reducing production costs;

The third source stems from the innovative activity of the enterprise; its use involves the constant updating of manufactured products, ensuring their competitiveness, increasing sales volumes and increasing the amount of profit.

Profit is the main general indicator of the financial results of the economic activities of enterprises of all types, regardless of their organizational form. Profit is the difference between the total amount of income and the costs of production and sales of products, taking into account losses from various business operations. There are balance sheet, gross, taxable and net types of profit.

1. Balance sheet - Balance sheet profit includes profit from ordinary activities, financial results from operating and non-operating operations, and extraordinary circumstances.

Rice. 1 Scheme of formation of balance sheet profit

2. Gross - differs from balance sheet profit in that when profit from the sale of Fixed Assets and other property is included in gross profit, the excess between the sale price and the initial or residual value of this property is taken into account. In this case, the specified initial or residual value is multiplied by the inflation index. Gross profit, in contrast to balance sheet profit, also includes the amount of excess of expenses for remuneration of employees engaged in core activities over their normalized value.

3. Taxable - part of the enterprise’s profit, subject to tax in accordance with the law of the Russian Federation “On the income tax of enterprises and organizations”. To determine taxable profit, it is necessary to subtract from the balance sheet or gross profit income tax benefits, profit deductions to insurance or other funds similar in purpose, as well as profit (income) taxed in another legislative manner.

4. Net - the profit of enterprises remaining at their disposal after paying all taxes, excise taxes and payments to state and local budgets. To determine net profit, income tax, advertising tax and other taxes and payments are subtracted from the enterprise’s balance sheet; the remaining difference in the form of net profit is used by the enterprise at its own discretion.

Rice. 2 The scheme for generating net profit is presented

Considering profit as an economic category, it is necessary to highlight the functions it performs. In modern economic science, there is no consensus on what is included in the functions of profit. As a rule, there are two main functions of profit - a meter (measure) of the efficiency of social production and a stimulating function.

The function of profit as a measure of production efficiency lies in the fact that it is profit and profitability that are the main indicators of the successful operation of an enterprise and predetermine the adoption of decisions such as the company’s entry into new markets, the flow of capital from one industry to another, etc.

The stimulating function of profit is predetermined by the fact that profit makes it possible to receive not only personal income for the company’s shareholders associated with the payment of dividends, but also creates opportunities for increasing capital, and accordingly increasing production volume, growth of the market segment in which the company operates, and the opportunity to enter new sales markets, which in turn leads to an increase in jobs and an increase in tax revenues to the budget.

In a market economy, profit occupies a central place, expressing diverse economic relations and connections in the production process, acting as the goal of entrepreneurial activity of economic entities. The desire to increase profits turns it into the main driving force and the main source of economic and social development not only of individual enterprises, but also of the state as a whole. Profit remains one of the main qualitative indicators characterizing the financial results of economic activities of enterprises in a market economy.

Profit as an economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity. From an economic point of view, profit is the difference between cash receipts and payments, and from an economic point of view, it is the difference between the property status of the enterprise at the end and beginning of the period.

Profit calculated for accounting purposes does not reflect the actual result of economic activity, which has led to a distinction between the concepts of accounting and economic profit. The first is the result of the sale of goods and services, the second is the result of the work of capital.

Profit is a positive difference between the income of a commercial organization, understood as an increase in the total valuation of its assets, accompanied by an increase in the capital of the owners, its expenses, understood as a decrease in the total valuation of assets, accompanied by a decrease in the capital of the owners, with the exception of the results of operations associated with a deliberate change in this capital.

Profit (loss) is an increase or decrease in the capital of owners that occurs during the reporting period.

Both of the above definitions have the right to exist, however, from the standpoint of practical implementation, i.e. calculation of profit, it is the second that seems preferable.

The idea of separating economic and accounting profits belongs to D. Solomon. This is what its definition looks like:

Accounting profit +

Non-operating changes in the value (valuation) of assets during the reporting period -- Non-operating changes in value (valuation)

assets in past periods +

Non-operating changes in asset value in future periods =

Economic profit.

This approach involves determining quarterly goodwill(an intangible asset reflecting the business reputation of the company) and its fluctuations.

D. Solomon proceeded from the premise that the concept of profit is necessary for the following actions:

tax calculations;
creditor protection;
choice of investment policy.

From these positions, the accounting interpretation is acceptable for the first and unacceptable for the third purpose.

In an economic system, profit performs the following functions:

serves as an indicator of the efficiency of the enterprise;
has a stimulating function, as it is the main

element of the enterprise's financial resources;

It is a source for the formation of budgets at various levels.

In Russian practice the following concepts of profit are used.

Gross profit - the amount of profit (loss) from the sale of products (work, services), fixed assets (including land), other property of the enterprise and income from non-sales operations, reduced by the amount of expenses for these operations.

Profit (loss) from implementation products (works, services) - the difference between sales revenue without VAT, excise taxes and production and sales costs included in the cost.

The formation of revenue is related to the characteristics of the work performed and the forms of payment used. For example, in construction organizations, revenue reflects the cost of completed construction projects or work performed under contract and subcontract agreements. To calculate profit, the actual cost of completed work is used. In trade, supply and marketing organizations, revenue corresponds to gross income from the sale of goods. Gross income - the difference between the selling and purchasing costs of goods sold. To calculate profits, distribution costs of trading, supply, and sales organizations are excluded. In transport and communications, revenue reflects funds received for services provided at current tariffs. The cost price is an indicator of the operating costs of transport and communications enterprises, taking into account the costs of forwarding and loading and unloading operations.

Gross profit also includes excess proceeds from the sale of fixed assets And other property, which primarily means capital gains. Profit (loss) from the sale of fixed assets, their other disposal, sale of other property - a financial result not related to the main activities of the enterprise. Reflects profits (losses) on other sales, which include the sale to third parties of various types of property listed on the balance sheet. An enterprise has the right to write off, sell, liquidate and transfer its property (buildings, structures, equipment, vehicles, material assets and other types of property). The financial result occurs only when the listed species are sold. It is defined as the difference between the proceeds from the sale of property (less VAT) and the residual value, taking into account the costs incurred for the sale. Other property includes raw materials, materials, fuel, spare parts, intangible assets (patents, licenses, trademarks, software products), currency values (currency, securities in foreign currency, precious metals and stones), securities.

The amount of gross profit is influenced by income And expenses from non-operating operations. Financial results from non-sales operations - profit (loss) on operations of various types that are not related to the main activities of the enterprise and are not related to the sale of products, fixed assets, other property, performance of work and services. The financial result is calculated as income minus expenses for non-operating operations.

Income includes:

income received on the territory of the Russian Federation and abroad from equity participation in the activities of other enterprises, i.e. part of the profit received by the founder in an agreed amount, or dividends on shares owned by the enterprise;
dividends on shares, income on bonds and other securities;
income from property rental;
income from additional valuation of inventories and finished products;
fines, penalties, penalties and other sanctions awarded or recognized by the debtor, as well as income from compensation for losses;
profit of previous years, identified in the reporting year (amounts received from suppliers for recalculations for services and material assets received and spent last year, amounts received from customers for recalculation for products sold);
positive exchange rate differences on foreign currency accounts and transactions with foreign currency;
interest on funds in the accounts of the enterprise.

Expenses include:

costs for canceled production orders, as well as for production that did not produce products, excluding losses reimbursed by customers;
costs of maintaining mothballed facilities, with the exception of costs reimbursed from other sources;
losses from downtime due to external reasons not compensated by the culprits;
losses from markdown of inventories and finished products;
losses on operations with containers;
legal costs and arbitration fees;
recognized fines, penalties, penalties and compensation for losses caused;
amounts of doubtful debts in settlements with other enterprises and individuals, subject to reservation in accordance with the law;
losses from operations of previous years identified in the reporting year from the description of bad receivables;
uncompensated losses from natural disasters, including costs associated with preventing or eliminating their consequences;
uncompensated losses as a result of fires, accidents and other extreme situations;
losses from theft, the perpetrators of which have not been identified;
negative exchange rate differences on foreign currency accounts, as well as on transactions with currency.

Profit before tax (balance sheet)- the final financial result reflected in the balance sheet of the enterprise and identified on the basis of accounting of all business transactions of the enterprise and the assessment of balance sheet items. It is used to assess production efficiency, identify the dynamics of its growth and determine overall profitability, as well as for profit tax purposes. Net profit They call the profit remaining in the enterprise after paying all taxes and used for the development of production and social needs.

In the goods market, enterprises act as relatively isolated commodity producers. Having set the price for products, enterprises sell their products to consumers, receiving cash proceeds for them. However, this does not yet mean making a profit. To identify the financial result, it is necessary to compare revenue with the costs of production and sales, i.e. With .

The company makes a profit:

if revenue exceeds cost;
if revenue is equal to cost, then it is only possible to reimburse the costs of production and sales of products and there is no profit;
if costs exceed revenue, then the company receives a loss, i.e. negative financial result, which puts him in a difficult financial situation, which does not exclude bankruptcy.

Profit and its role

Profit is one of the most important economic categories of a market economy, perhaps the most important, since profit is the goal of entrepreneurial activity, its meaning. Entrepreneurship, as a result of which only costs will be covered, is uneconomical and practically unnatural.

Main source origin of profit - This is entrepreneurial activity, or rather, the essence of this activity, the meaning of which is making a profit.

The stimulating essence of profit has a dual character:

in some cases, profit is a real incentive for entrepreneurial activity; in a socially oriented market economy, everyone receives the money they earn: the entrepreneur receives profit, employees receive wages;
in other cases, the essence of profit is truly its exploitative essence, associated with the entrepreneur’s ability to appropriate the results of other people’s labor on the basis of private ownership of the means of production, capital. The amount of profit in certain cases is inversely proportional to the level of wages. Therefore, if the owner of an enterprise increases profits by reducing workers’ wages, then this part of the profit will have an exploitative nature.

Of course, there should be no equalization of income, just like there should be no lawlessness, since this contradicts the principles of a market economy; the level of income of owner-entrepreneurs suffers in some cases, and in others the wages of workers are less than the possible and necessary level.

The role of profit in the activities of the state and all sectors of the economy, including the real one, is enormous.

Profit is an indicator of efficiency, the financial result of any business activity, the main indicator for assessing the activities of enterprises based on profitability indicators, in the form of the ratio of profit to revenue, cost, assets or equity. Another base is also used.

Profit is the main source of equity capital of any enterprise, both for current activities (net assets) and for the development of production (investments) and other own needs.

Profit is the main source of solving the problem of increasing market value. This goal requires constant growth of the enterprise's own funds.

Profit is the main source of saving an enterprise from bankruptcy. The “profit - equity” relationship also works here, and the main thing in this connection is its constancy in sufficient quantities.

Profit is the most important source of meeting national needs, since income tax is one of the basic taxes of the country’s tax system. As a result, the profit ensures:

completeness of budget system revenues;
development of social needs of the entire population, i.e. medicine, education, science, children's institutions, etc.;
financing the country's defense.

The greater the profit of a country's enterprises and organizations, the stronger the national currency - the ruble. This means stabilization of macroeconomic indicators and, as a result. — reduction in inflation, growth in the material well-being of the population.