How to find profit from sales
Video: how to calculate profit on sales 2024, July
In a market economy, the functioning of any enterprise of production and economic activity is reduced to one goal - making a profit. Due to profit, the company can not only function, but also expand its production activities.
Instruction manual
1
Profit from sales implies the difference between the proceeds from the sale and the cost of production. Sales revenue includes all cash receipts from the sale of products. The cost of production can otherwise be called as the cost of production of goods.
2
The following factors should be identified that affect the amount of profit from sales. These include: • an increase in sales of goods or the sale of services;
• variety of product range;
• reduction of production costs;
• change in the price of products.
3
Usually gross profit and net profit are found. Gross profit represents all income from the sale of products or the sale of services. Net profit remains after all costs are deducted from gross profit and taxes are paid. In a word, the net profit indicator is the result of the final activity of the enterprise.
4
In order to find a profit from the sale of goods or services, first you need to find gross profit. To do this, you need to know the implementation or in other words the total amount from sales. This amount is taken from the table "Sales of goods and services" in the external report of profit from sales in 1C Accounting.
5
We find the cost of production. Cost is taken from postings to the 41st account of the same report.
6
We calculate gross profit. To do this, subtract the cost of production from the sales amount.
7
Having determined the gross profit, you can calculate the profit from the sale of products. To do this, find management costs. This amount is reflected in line 040 of the section "Income and expenses for ordinary activities" of the income statement. In the same section of the profit and loss statement we find selling expenses, which are reflected in line 030.
8
Subtract sales and management expenses from gross profit. The result obtained is the profit from the sale of products.
note
Net profit - part of the balance sheet profit of the enterprise, remaining at its disposal after payment of taxes, fees, deductions and other obligatory payments to the budget. Net profit is used to increase the working capital of the enterprise, the formation of funds and reserves, and reinvestment in production. Find and place in the form of footnotes links to authoritative sources confirming what was written.
Useful advice
Net profit is: 1) the part of the gross income that remains at the disposal of the enterprise after the formation of the wage fund and taxes, deductions, obligatory payments to the budget, to higher organizations and banks. No expenses are taken into account, therefore all expenses of this category of taxpayers are made from the funds remaining after taxation (regardless of whether they have a net profit or not). In this regard, you need to find the answer to the following question.
