The relationship of income and expenses of the enterprise

When drawing up plans for the financial activities of the organization, special attention is paid to the balance of own circulating and borrowed funds (mandatory payments in the planning period). Working capital in the organization is the authorized capital and profit of the enterprise from the main activity. Borrowed funds are current assets received on the balance sheet of the enterprise (bank loans, payables, etc.).

Enterprise income sources

Depending on the economic activity of the enterprise, sources of income are divided into several types:

- profit received from the sale of manufactured products;

- profit from the sale of own fixed assets;

- profit received from foreign exchange transactions;

- funds received from lending to projects of third-party enterprises;

- depreciation deductions.

When planning financial costs for investments (enterprise development), the planned total revenues for a certain period of own working capital are taken into account, after deduction of obligatory payments:

- payroll deductions

- income tax;

- payment for energy consumed;

- payment for purchased materials for the main production;

- payments for the lease of property;

- payments on shares and bank loans.

The main source of financing investment in the enterprise is the development fund, whose activities are aimed at the technical re-equipment of production (the acquisition of modern equipment, new technologies) and the capital construction fund.

Also, borrowed funds may be involved for the development of the enterprise.