In practice, any company, whether the newspaper group or private construction company, there is such a thing as the estimated profit.It is extremely important in the calculation of income and expenses of the legal entity.
Estimated profit - is the estimated income of the company, net of cost of works intended to cover the development of the organization, paying its staff and improve its social sphere.Its dimensions are calculated either at the conclusion of any new agreement or negotiated between the customer and the company in advance.The second case is usually used when the standard industry-wide estimate profits can not cover all of the above costs for the company's development and material stimulation of employees.
estimated profit is not intended to cover overheads (indirect or unforeseen) costs of the enterprise.They usually are calculated separately.Then, these costs are included in the budget and are paid on a par with any other necessary expenses.
estimated profit calculated as a percentage within the rules adopted by the law.The basis for the calculation is taken wages, which according to regulations must be at least 65% of the estimated profit.You should also consider the average cost of the work and the rate of the enterprise.
In large enterprises (for example, construction companies) for the settlement of the business relationship between the customer and company-builder, a special package of documents.
estimated documentation - a full set of necessary papers with data on the project, all of its detail on the planned costs and expected profits.It specifies the prices for all kinds of work by an enterprise, as well as a detailed description of most of these works with graphic drawings and diagrams.
Regulatory estimated profits in many industries is still not well established by Russian law.Therefore, in all cases of dispute, the company away from the accepted standards and appoint a contractual value of their work.For example, on large construction sites where a lot of people working, wages per worker is below average, so the construction company has the right to raise the estimated profits for its future activities.
So, estimated profit, or as it is sometimes called, "net income" is the income of the company with any project, the funds of which are directed at improving further its work.Its size is determined by the state, regional and local standards (standards established within the company, the average wage, and so on).The value of the estimated profits do not have to explain.After all, if it does not, the company would have lost the opportunity to develop, workers would lose wages, and the whole industry came to decline.Therefore, it is important to calculate the estimated profit to maintain an optimal balance in the company, its development, relations between it and the customer.
