The enterprise's income is what? Types of income of the enterprise

The income of an enterprise is that for which a particular legal entity is generally engaged in its activities. Thanks to this indicator, it becomes possible to expand, pay salaries, purchase new equipment, purchase materials, pay for services of outside organizations and so on.

Definition

The income of an enterprise is the money that a legal entity receives for providing its own services, selling goods, performing work, and so on.

Traditionally, income is calculated after all the expenses that the company incurred in performing its functions are deducted from the funds received. Revenue is calculated for a certain reporting period, and can be used for any suitable purpose.

Types of income of the enterprise

There is a certain division of the funds received for the performance of services. Allocate such options as net income, money received in connection with emergencies, the receipt by the system of taxation of additional profits, the income of the enterprise from various options of activity and directly direct receipt of funds from the performance of basic functions.

Revenues from sales

The profit that was received by the firm for the sale of goods, the performance of work or the performance of services, is the enterprise's income. In accordance with applicable norms, standards and laws, the concept of such factors includes any basic functions that have been fully implemented. That is, if it is goods, then they must be fully paid and sent to the buyer (or taken out of them independently from the warehouse). It should be noted that at the same time, out of the money that was transferred for products, it is necessary to deduct any possible costs such as excise tax, taxes and so on.

The situation with jobs and services is similar. They must be fulfilled in a timely and full manner, and the funds for them must be received at the enterprise's account. An example of such a situation can be the simple implementation of any goods. The seller and the buyer enter into a contract. Within the framework of this contract, the implementer produces (or resells) any products. The buyer takes it (or receives it by means of transportation from the seller) and at a predetermined time makes payment to the company's account. This can happen both before the direct receipt of the goods, and after this moment. Among other things, many other possibilities can be taken into account, such as payment as the sale of goods to end customers or the transfer of funds before the start of production. Much depends on the relationship and trust between the two sides of the transaction, their reputation, the peculiarities of the work process, the established practice, and so on.

Gross income

If the main income of the enterprise involves getting money for performing the basic functions, then its gross variety is the difference between the money received and those that were spent on purchasing materials, servicing or purchasing equipment, and so on. In fact, this is the profit that is obtained by the company in its pure form, that is, when it is clearly understood how much money was spent on the creation of the product and how much it received for it.

The following situation can serve as an example. The company purchases materials required for the production of goods. She spends money on it. Now, in addition, it is required to purchase equipment, pay salaries to employees and so on. This is also all considered expenses. Then, as a result, the products are produced, which is sold to the buyer. This is income. Here is the difference between the amounts that were spent on the creation of goods, and those that were received in the end, and is gross income.

Income from core and non-core activities

Financial income of an enterprise from its core business is the next stage of calculations, which takes into account the previously calculated gross profit, with the exception of all funds spent on the company's overall activity for a certain point in time. That is, if in the previous paragraph only those expenses that were incurred by the firm in the process of creating the goods or performing the service were taken into account, then practically everything that can and that cost the company money until the profit was taken into account is already taken into account.

Also, there is another income of the enterprise. These are the means that it receives from some extraneous activities that are not directly related to the basic functions, but also allow for a certain profit. There are a lot of such options, and they directly depend on the characteristics of a particular organization. An example of this can be considered the receipt of profit from the lease by other persons of the company's property, from deposits, sales of fixed assets, materials, ownership of shares and so on. Clearly you can consider this example: there is a firm that sells its products. To receive additional income, she can offer for an additional fee to transport to the specified point the ordered goods, unload it, install, teach to use and so on. That's the sale of products - the main income, and everything else - transportation, installation and other - is not the main activity.

Taxation and income

In addition, the company's revenues and expenses are directly related to taxes. So, allocate those profits that exist before the moment of payment of money to the state budget and their balance after the operation. The first option shows a more honest income, which was obtained as a result of the firm's activities, but focuses mainly on the second option. This is due to the fact that it is still necessary to pay taxes, and it is much easier to take this factor into account immediately, distributing funds that are not going anywhere right away between different directions, than cutting financing later on due to incorrect calculations.

In some cases, the enterprise has the right to reimbursement of previously paid taxes. That is, you will still have to give money all the same, but there is a high probability that they will eventually fall into the account again. Given the fact that it is not always possible to calculate when exactly such a return occurs, it is extremely difficult to predict anything on this basis. However, to take into account a certain amount, which can be further spent with profit, still worth it.

Emergencies

In spite of the fact that in most cases, various non-standard moments that can influence the company's operation, most often lead to losses (in one or another size), with a certain share of luck and having a properly formed insurance, they can also cause profit. For example, there is a situation in which the insured equipment is damaged. The case suits the insurance company described in the contract, and it pays all the funds it needs. At the same time, the damaged technique was either not needed at all, or it was planned to be replaced. As a result, the amount of insurance payments can significantly exceed the money that the company could receive for the implementation of unnecessary fixed assets.

Net income

Net cash income of enterprises is the difference between the costs incurred by the company due to force majeure situations, as well as the profits that have been left after everything was realized, and the tax has already been paid. It is on this money that the firm can count and use them to encourage employees, upgrade, expand and so on. They can also be divided between the owners of the company (if there are several). All pure income is summed up from non-core, operating, as well as profit, received from the main activity of the company.

A good example: there is a company that produces goods. Then she realizes it and gets money for it. The next step is to pay taxes and, as an option, incur certain costs associated with force majeure situations. That is, the goods are sold, the money is obtained, then taxes are paid. Then, for example, there is a flood, and from the funds calculated in the previous paragraph, repairs are carried out, and only what remains will be considered a net income of the company.

Results

From all that has been said above, it follows that the financial activity of an enterprise in terms of obtaining funds for the performance of its functions is divided into several stages, on each of which it is possible to calculate certain types of income. They can both carry useful statistical information, and be taken into account in the future for subsequent calculations, determining future capabilities of the company and so on.

The income of the enterprise is the basis on which all activity rests. It is the sense of functioning of a legal entity (at least, most of them). Of course, there are also such companies that do not place the receipt of income as their main duty. Nevertheless, they also have a profit from charitable foundations, from performing some non-core work and so on.