Revenue - is the main indicator of the economic activity of the enterprise

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meaning, purpose and objectives of the production is to make a profit.Revenue - this means from the sale of products.These funds come at the expense of the organization for giving consumers of goods, works or services provided.Revenue - is not only a major source of revenues.These funds are used and cost recovery.

revenue - is the main indicator of the economic activity of the enterprise.In every economic sector funds from the sale will have a more specific definition.For example, for an industrial enterprise revenue - the sum of sales, for the construction company - expressed in the value of the amount of work that have been made, and for the organization of trade - trade.

Sales organization can be not only the result of operating activities.The company may receive funds from non-sales operations.In particular, revenue could come from the rental of premises, operations with securities.

Funds from sales are only part of the income.They (agents) are used now for the purchase of raw materials, debt, payment of taxes and royalties payments to the various budgets and funds.All funds are received (or deemed to receive) the organization in accordance with the implementation of signed agreements, net of tax deductions - is the net revenue.Part of the money goes for salaries.Thus, the entire amount of the first carried out the necessary deductions, and then left the net income (net revenues).

One of the most important moments in the course of business is considered to be timely receipt of funds from the sale.It attaches great importance to this point due to the fact that it ends in the preparation of the revenue cycle activities.Obtaining funds allows the company to make up for the cost of production and to create conditions in which to start a new cycle of activity.At the same time, for the enterprise are the main means of implementation and a regular source of income.

timely flow of funds provides the financial stability of the organization, eliminates the delay in payments to the banks, the budget, the tax authorities, funds, providers, as well as its own employees.When the late receipt of the proceeds, the company is unable to fulfill its obligations, which could lead to fines, loss of income, and in some cases to stop production.

There are two ways to determine the means of implementation.

for tax reporting can use cash or accrual basis.

In the first case, the revenue is determined by the terms of payment for shipped products, that is, after the transfer of cash (in cash) or non-cash (in a bank) funds for the goods.

accrual method determines the revenue on terms of shipment and presentation of the corresponding settlement documents to the buyer.

Typically, the first method is used in small businesses.Other organizations should follow the accrual basis, taking into account the revenues upon shipment.

In determining the funds from the sale upon execution of works, provision of services or of delivery, tax liabilities are formed in the same moment.Their occurrence does not depend on where in the company the receipt of money from the buyer.This can create a lack of financial resources of the organization.

on revenue size greatly influenced the pricing process.To a large extent determined by the market value of the goods, according to the balance of supply and demand.The price of products manufactured by the enterprise, should be formed so that, when compensation costs remained profits.