Gross income -It is the total income generated by an organization as a result of its activities. Gross income is determined by revenue from the sale of goods or services, as well as taking into account other types of income. This indicator is the main one for determining profit.

What does the term "gross income" mean?

The concept of “gross income” is used by economists and accountants to evaluate the results of an organization’s activities. The gross income indicator makes it possible to assess the effectiveness of the team by calculating profit from it.

Gross income is the total amount of the company's revenue from the sale of:

• the goods and services it produces;
• real estate and other fixed assets;
• intangible assets;
• shares;
• intellectual property rights.

Gross income includes payments received from the rental of equipment or real estate, as well as other types of non-commodity services provided by the company. Gross income also includes other types of income (penalties, fines, irrevocable assistance, bank interest and much more). In trade, gross income is determined by the total revenue from the sale of goods.

For information on what is considered income from sales, see the publication .

For information on non-operating income, see the material .

Formula for calculating gross income

Gross income is determined by the formula:

B dox = C unit × K,

In dokh - gross income;

C ed - the price of a unit of goods or services provided;

K is the quantity of goods sold or services provided. Calculation of gross income allows you to plan the directions of its subsequent distribution in order to ensure the self-sufficiency of the company. This, in particular, makes it possible to adjust selling prices to obtain better economic results.

Moreover, if accounting for commodity assets is carried out at purchase prices according to a quantitative-cost scheme, then the amount of gross income is determined automatically as the credit balance of account 90.1 “Revenue from the sale of goods.” If this condition does not apply, then the amount of gross income should be calculated using one of the formulas presented below.

Gross income in trade

Gross income in trade is calculated using the “ Methodical recommendations on accounting" dated July 10, 1996 No. 1-794/32-5. They (clause 12) provide formulas for calculating gross income for a trading company:

• by total trade turnover;
• taking into account the range of goods sold;
• at a determined average percentage;
• using the assortment of remaining goods.

Each trade organization has the right to use any of these formulas to calculate gross income from its practical activities. Gross income calculated using the average percentage formula is most often used in retail trade. This is the simplest gross income calculation of those listed earlier. To do this, use the gross income formula:

In dox = (ST ov × P avg) / 100,

In dokh - gross income;

ST ov - the amount of trade turnover;

P avg - the average percentage of the premium.

The average percentage is calculated by using the trade margin values ​​according to:

• balances of goods at the beginning of sales Tn o (opening balance of account 42 “Trade margin”);
• goods received Tn p (credit turnover on account 42 for the calculated period);
• disposed goods (damage, return) for the period of sales of Tn in (debit turnover on account 42).

Formula for calculating the average percentage:

P medium = (Tn o + Tn p - Tn v) / (ST ov + O tov) × 100,

About goods - the balance of goods on the settlement date (credit balance of account 41 “Goods” at the end of the billing period).

Let's consider additional formulas for determining the amount of gross income from the sale of goods in more detail.

Additional formulas for calculating gross income from sales of goods

1. Formula for calculating gross income based on total turnover:

Inhalation = STov × RNats / 100,

RNats is the estimated trade margin, which is calculated according to the formula:

RNats = Tovn / (100 + Tovn),

Tovn - trade markup (%)

The formula for calculating gross income based on total turnover is used provided that all groups of commodity values ​​have the same markup percentage. If its size changed in billing period, it is more expedient to use other formulas.

2. Formula for calculating gross income for the assortment of remaining product values:

Inhalation = (Tn o + Tn p - Tn in) - Tn k,

Tn k - markup at the end of the billing period (credit balance of account 42).

3. Formula for calculating gross income for the range of goods sold:

Inhalation = (STov1 × Medium1 + STov2 × Medium2….. STovN × MediumN) / 100,

STov(1...N) - trade turnover for a certain group of goods;

Average (1...N) - the average percentage of markup for each group of commodity values.

This method determining the amount of gross income is used subject to keeping records of commodity values ​​by groups of goods with the same markup percentage.

Gross income of a manufacturing firm

When producing products, a company calculates gross income based on the value received from its sale. Gross income here also characterizes the result of the company’s work on a certain date. To obtain a larger gross income, an analysis of prices, market conditions and demand for similar products is necessary.

Gross income may include not only income from sales of products, but also non-operating income, for example, from transactions with securities and other investment items. This may be income received from equity participation in other organizations, as well as other income in accordance with Art. 250 Tax Code of the Russian Federation.

For income and expenses during production and sales, see the publication .

Results

Any commercial activity is created with the aim of making a profit. Profit is the difference between gross income and costs incurred. The amount of gross income is determined by the formula. There are several formulas for calculating gross income, and each company chooses the option that suits its needs.

This article will discuss gross income: its sources, the formation mechanism, subsequent distribution, planning, and also its connection with profit.

The goal of every commercial enterprise is to take its place in the market, gain consumer trust and gain recognition. All this is necessary to make a profit. Profit depends on gross income. Gross income is important financial indicator inherent in an economic entity.

Formation of gross income

Under gross income understand the amount of funds received by an entrepreneur based on the sale of services/products. The amount depends on the quantity of goods sold/services provided.

Let's try to imagine how gross income is formed:

1. 1. A manufacturing company introduces its products or services to the market.
2. 2. The products begin to be in demand among consumers, as a result of which the company manages to gain a foothold in the market.
3. 3. Consumers buy goods/pay for services.
4. 4. The manufacturing company receives money.

Those funds that enter the treasury of this company as a result of all of the above operations are gross income. However, consumer money is only part of the gross income, because its formation occurs at the expense of all possible income.

What factors influence the amount of gross income

Consumer confidence– one of the main factors determining the amount of income. The more a consumer trusts a company, the more products he will buy.

But there are other very important factors that influence the final amount of income. Among them:

1. 1. Production factor. Extremely important for the consumer quality characteristics product, as well as its price. The production capacity of the enterprise and, as a consequence, the quantity of goods produced also affect gross income.
2. 2. Sales factor. If an enterprise can ensure fast shipment of goods, prompt execution of accompanying documents, compliance with the terms of the contract, and also organize competent sales logistics, then this will have a positive impact on the amount of gross income.
3. 3. Factors that the manufacturer cannot influence. These include:

   Compliance or non-compliance by the buyer with the terms of the transaction;
   - the client has the opportunity to pay for the purchase on time;
   - presence/absence of flaws in the transport support mechanism;
   - weather;
   - delays during loading/unloading.

Components of gross profitability

The firm makes its profit primarily by selling goods or providing services. But, as already noted, trade is not single source funds. Domestic gross income also includes:

• money received as a result of won lawsuits;
• fines, penalties and interest that are some physical or legal entity forced to pay this company;
• valuables that the company accepted for storage in accordance with the concluded agreement;
• part of the funds from the company’s insurance reserve – returned or used for other purposes;
• financial assistance to the enterprise;
• funds received as a result of various interactions (from dividends to interest on debt claims);
• money received from the sale of securities;
• bank interest, insurance proceeds.

How is profit related to gross income?

Their connection is quite close: in other words, they are interdependent. However, income is all receipts resulting from trading operations, while it is income minus costs. Profit is a pure indicator. To find out the profit of an enterprise, you need to subtract all the company's expenses from the amount of gross income.

How to calculate gross income

Gross income is the primary metric used to determine performance entrepreneurial activity for any period. Its value is influenced by the price of the product or service, and also by the number of goods sold/services provided.

The formula for calculating gross income (GI) is as follows:

PV = Unit price * Quantity of goods sold

Gross Income Distribution

Gross income is subject to further distribution in several directions. It is partially used for:

• reimbursement of depreciation charges related to the company's fixed assets;
• payment of mandatory deductions, duties, fines, taxes and interest on loans;
• basic payments wages employees;
• implementation of social payments;
• payment of incentive contributions in favor of valuable employees;
• replenishment of the enterprise's net profit fund.

Theoretically, gross income is the key to self-sufficiency of an enterprise. Gross income enables a business to maintain its existence. Making mandatory payments, financing production (purchases), business development - all this is carried out at the expense of gross income.

Gross income planning strategy

The head of any enterprise pursues certain goals and independently sets the time frame for achieving them. Goals can be short-term or long-term, the main thing is that they exist in principle. Without defining goals, successful activity is unthinkable.

Based on the indicators of past periods, management at the beginning of the next period sets new values ​​for gross income, and at the end of the period compares them with actual indicators.

When calculating target indicators, various duties and value added tax are not taken into account. They relate to government allowances and are not part of equity commercial organization. Periodically they must be transferred to the state.

In addition, the planned indicator of gross income does not take into account occasional income, which may not exist, namely:

• sale of assets (intangible, not related to the company’s operating activities);
• income received as a result of the withdrawal of fixed assets.

Management's ability to plan and ability to establish reasonable prices for products give the company a chance to strengthen its position in the market. When planning gross income indicators, you need to understand that its amount should be enough to cover costs and future expenses. But the main thing is that this indicator must also take into account net profit, which is the goal of any business.

A company's actual gross revenue depends on price and quantity sold goods or services provided. They are the main, but not the only factors determining its value. The amount of income is significantly influenced by the terms of trade, product characteristics, and the capabilities of the manufacturer (seller) and buyer. In addition, gross income is provided not only by sales, but also by auxiliary income, which can be quite significant.

Gross income– an indicator represented by the total income received during commercial activities(sales of goods/services). Gross income is one of the key indicators of the profitability and efficiency of an organization, which can be determined by several calculation methods. Calculation of the indicator makes it possible to timely identify a decrease in the profitability of an enterprise and subsequently optimize its activities, increase trade turnover, reorient production to other groups of goods, etc.

Gross income - calculation of an indicator to improve the efficiency of companies

Sources of formation this indicator are:

• products without financial costs (the so-called monetary expression of the company’s net product);
• alternative sources (bank interest, fines/penalties paid to the enterprise, insurance reserve funds, dividends/income from financing, etc.).

Based on this, gross income is an indicator reflecting the turnover of an enterprise, the size of which depends mainly on the volume of goods/services sold.

The indicator is calculated in several ways, including:

• calculation of the total turnover of the enterprise;
• calculation based on the range of products in circulation;
• calculation based on average interest;
• calculation taking into account the range of remaining products.

Since gross income is the financial base of the organization, calculating the indicator allows you to solve a whole range of problems for the enterprise, including:

• control over the company’s current expenses for business activities;
• creating conditions for self-sufficiency of the organization;
• control over the stable fulfillment of debt obligations to the state (in particular, the payment of taxes);
• control of turnover, profitability and efficiency of the enterprise.

Basic methods for calculating the indicator

Calculation based on turnover. This method is effective if all products of the enterprise are subject to a one percent trade markup. This method calculates the indicator even if the size of the premium has changed several times over a period of time. To do this, establish the size of trade turnover in a separate period when a specific one was in effect.

The calculation formula for this method is as follows:

VD = TO*RN/100, where

VD – gross income generated from the consumption of products;

TO – total volume of trade turnover;

RN – calculated allowance.

Determination of the indicator by product range. The calculation method is used when different trade markups are established for different groups of goods. Determining the indicator requires dividing the total turnover into groups. Grouping of goods is carried out taking into account the same markup indicator.

VD = (TO1*RN1 + TO2*RN2…TOn*RNn)/100, where

TO – trade turnover, divided into groups;

РН – calculated markup, typical for different groups of goods.

Determination of gross income taking into account the average percentage. The simplest way to calculate an indicator, the disadvantage of which is low accuracy. The inaccuracy of the results is associated with the average percentage of gross income, which does not sufficiently objectively reflect the situation at the enterprise. The advantages of the method lie in its versatility - it is suitable for calculating indicators in organizations of any type.

The formula for determining the indicator is as follows:

VD = TO*P/100,

where P is the average percentage of gross income.

Determination of the indicator taking into account the range of product residues. This method has increased accuracy compared to the previous calculation method. However, to determine the gross income indicator, it will be necessary to conduct an inventory of the remaining products for the period in which the calculation is being made.

The calculation method is as follows:

VD = (TNn + TNp - TNv) – TNk, where

TNK is an indicator of the trade markup that applies to residual goods at the end of the reporting period.

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The purpose of functioning of business entities is to make a profit. However, this parameter does not determine the characteristics activity of the enterprise, since it is formed by general criteria income and expenses. The financial result is identified by gross income, the value of which is taken into account in the calculation of total revenue, on the basis of which it is determined net profit. The criterion is considered an important economic indicator, since it allows you to analyze the activities of a business entity and identify factors influencing it.

Gross income of the enterprise. What is this indicator?

The gross income of an enterprise determines the financial result of a business entity, which does not take into account the item of expenses related to tax deductions.

The parameter identifies the amount of excess of the organization's income over expenses, including the costs of ensuring production, including advertising and the sale of products or services. To competently determine gross profit, it is necessary to separate selling and production costs. In progress economic activity During the reporting period, the company may incur expenses that will not be included in distribution costs. These include payment of fines, repayment of debt on loans in which the rate exceeds the standard value, as well as writing off the residual value of real estate after their sale. Such costs are covered by profit, but do not participate in the formation of gross profit.

How is it formed

Formation of gross income

Gross income is formed in several stages:

1. A production process during which the business manager spends funds to ensure it.
2. Conducting activities by a business entity that are not related to the main work, which is a source of replenishment of the company’s current account.
3. Introduction of labor results into the market. The event requires expenses aimed at advertising, transport and economic activities.
4. Increased consumer demand for a product or service.
5. Payment by consumers for purchases, as a result of which the business entity receives the first profit.
6. Accounting, in which specialists compare the costs of ensuring production with the profit received.

All cash, received to the organization’s current account, relate to gross income, their total value forms the value of the parameter.

What influences the value

The gross profit parameter depends on financial indicators:

• the amount of revenue received from the sale of the results of production activities;
• income received as a result of transactions that, in accordance with the company’s accounting policies, do not belong to the main ones;
• the cost of business results, including the amount of distribution costs, taking into account the costs of purchasing raw materials and materials, paying for electricity, rent, advertising and intermediary services, as well as paying wages to employees.

Relationship between cost, gross income and profit

Business entities have the right to add to the list of expense items that depend on specific feature production. The amount of gross profit may be influenced by controllable factors tending to increase indicators:

• volume of products produced or sold;
• conditions of competitiveness;
• quality of performance results;
• range of products or services;
• operation of production assets;
• labor productivity.

Potential and actual gross income

There are also factors that are difficult to predict and control, but they have a direct impact on the parameter. These include:

• amendments to legislative norms;
• reforms of a political and economic nature;
• unscheduled change of counterparties providing transport and resources;
• territorial and geographical features location of the business entity.

Read also: Types and formulas for calculating profitability

Gross income is the difference between sales revenue and the cost of business results. The cost parameter is determined by the costs of raw materials, shop costs and wages of hired workers. To reliably reflect the value, the calculated elements should be taken for a certain time period. The organization's accounting department must develop and approve a regulated list of cost items related to production support and non-operating expenses. This will allow you to accurately determine the amount of costs taken into account in the cost of production.

Accounting

Types of profit

A business entity must take into account the level of gross income. The formula for determining the parameter allows you to carry out calculations that take into account values ​​obtained using the cash method or based on the amount received to the current account by transfer.

Using the cash method allows you to estimate the amount of real funds that were received by the seller for the realized results of labor. However, when providing a counterparty with an installment plan or receiving an advance payment, the parameter may not be assessed reliably, since the profit will be taken into account in the calculations only after receiving the money. When making calculations based on the accrued amount, it is possible to calculate an objective indicator, since its calculations are relevant already at the time of signing the contract or the act of transferring the goods or services to the final consumer. Calculations are carried out without taking into account advance payments. The entire amount of mutual settlements is taken into account at the time of registration of official relations, even if the actual payment will be made later.

How to increase

Company performance indicators

Having understood what gross income in trade is and what impact it has on the profitability of a business entity, you can adjust the parameter towards its increase. Since the indicator is dynamic, its value can be changed by ensuring competent inventory accounting and reducing costs. The head of a business entity should pay attention to ways to increase production efficiency:

• taking advantage of the opportunity to apply tax benefits;
• timely and regular write-off of items classified as bad debts from the balance sheet;
• use of modern software to analyze inventory balances used to support production;
• optimization of the production process;
• ensuring literacy pricing policy, taking into account the general situation on the market, as well as the demand for products;
• modernization of equipment to increase the speed of production of improved quality products;
• control of intangible assets through regulatory criteria.

Types of gross income

In calculations of income capitalization, concepts such as potential and actual gross income are used.

Potential gross income is the income received from the use of real estate, excluding expenses. The parameter depends on the rental rate applied to the property and the area of ​​the property. To calculate it, it is necessary to multiply the area of ​​the property leased by the applicable rental rate established according to regulated standards per square meter.

How to increase profits

Actual gross income is the income of a business entity received from the transfer of real estate for rent, taking into account the possibility of obtaining additional profit as a result of the market use of the property, as well as incurred losses and expenses. Losses may be associated with unused space, as well as with the costs inherent in ensuring the collection of rent.

The base value for the calculation is the potential gross income, which takes into account the profit from the entity’s activities not related to the rental sector, as well as incurred losses and expenses.

Types of profit

There is a distinction between gross and net business profit. The gross parameter takes into account the costs associated with ensuring the work process, and its net equivalent takes into account all production costs.

Gross income is revenue from the sale of goods and services minus their purchase price.

Gross income is generated from trade markups, receipts for services rendered and work performed (delivery of goods to your home, cutting fabrics, assembly and installation of furniture, etc.), other income from non-core activities (sale of surplus equipment, rental of premises and facilities small retail network, income from equity participation in the activities of other enterprises from securities owned by the enterprise, the balance of income and expenses from non-operating transactions, etc.).

Gross income is calculated using the following formula:

VD = N + Su + Pd,

where VD is gross income;

N - amount of trade markup;

Su - cost of services provided;

PD - other income.

Gross income is calculated by two main indicators: absolute amount (in rubles) and level (%).

The level of gross income is calculated as the ratio of the amount of gross income to the absolute amount of retail turnover multiplied by 100%.

Profit

Profit from trading activities is the difference between gross income and distribution costs. Profit is the main indicator of the economic activity of a trading enterprise.

Profit is measured by two main indicators - amount and level. If the amount of profit is less than the absolute amount of distribution costs, then the financial result of the enterprise’s economic activity will be a loss.

Accounting (gross) profit is the difference between gross income and distribution costs. It is known that not all costs of a trading enterprise are included in distribution costs. Part of the costs incurred by the enterprise at the expense of profits is not considered distribution costs. The sum of the enterprise's costs, taken into account as part of distribution costs and attributable to profit, forms economic costs (all actual expenses of a trading enterprise).

Economic profit is the difference between gross income and economic costs. Based on this indicator, one can judge the amount of entrepreneurial income, which indicates the recoupment of expenses of a trading enterprise (entrepreneur) and its ability to self-development.

Profit (loss) from the sale of goods and services is the difference between gross income from the sale of goods and services (excluding VAT) and distribution costs.

Profit from the sale of fixed assets and other property is calculated as the difference between the sale price and the original or residual value of these assets and property, increased by the inflation index.

The composition of income (expenses) from non-operating operations includes: income received from equity participation in the activities of other enterprises, dividends on shares, interest on bonds and other securities owned by the enterprise, income from leasing property, etc. As part of non-operating expenses tax payments attributable to financial results activities of the enterprise (property tax, transport tax, etc.).

Gross (balance sheet) profit is the final result of the economic and financial activities of an enterprise and is calculated as the amount of profit (loss) from the sale of goods, fixed assets, other property and income from non-operating operations, reduced by the amount of expenses for these operations. Gross (balance sheet) profit is subject to distribution between the enterprise and the state budget.

Net profit represents that part of the gross (balance sheet) profit that remains at the disposal of the enterprise after paying income tax.

Taxable income is the portion of gross income that is subject to tax. When calculating taxable profit, amounts taxed at the established rates at the source of their payment are excluded from gross profit. These are income from rent, rental of video and audio cassettes, dividends on shares, interest on bonds and other securities owned by a trading enterprise, income from equity participation in the activities of other enterprises, profit from intermediary operations and transactions.

From the above it follows that profit in trade performs the following main functions: an evaluative indicator of the enterprise’s activity, acts as a source of material incentives for workers, remuneration for section owners, shares in the authorized capital of the enterprise, and also serves as a source of self-financing of the enterprise and replenishment of the state budget.