Nowadays, the concept of return more relevant than ever.And if earlier income was purely entrepreneurial concept, but now we are all in some way connected with it.
In fact, the income - the sum of cash flows or material values of a particular subject (natural persons, legal persons or the state as a whole) for a certain period, which is the result of an activity permitted by law.
In addition, there is a term such as net income.Here, there are many opinions and judgments concerning the interpretation of this concept.Quite often, the definition of net income yield revenue considering deducting all costs.But in this case it will be a profit.
In fact, this indicator is often confused with income, but in practice it is a different concept, and the profit is just the end result of the company.It is calculated as income from which deduct all expenses and mandatory payments.In this case, it refers to the net profit.
What then is the net income?It's all money or material receipts, except for some mandatory payments (VAT, excise duty), as well as other deductions from income.Such a sequence of calculation can be seen in the statement of financial performance.And where else but there, look for the answer to a question about the formation of revenues and profits?
consider these concepts as an example.
For example, the company has sold goods worth X, which will make its income.This is the first category.When the company will deduct from this amount the VAT, we get Y, ie net income.But even when we subtract the cost of (this, incidentally, is the gross margin), embezzlement, labor, delivery, transportation, maintenance of administrative personnel, depreciation, income tax and other charges, we obtain a net profit.In fact, this is the amount of funds that can be disposed of and from which nothing should not be deducted.But if the waste exceed revenues - it would be a loss.
Such an algorithm for the financial accounting.In the tax system, everything looks a little different.Due to the fact that there is any income received payment to an account in a financial accounting system - the first event.That is, if the goods are shipped, its selling price is displayed as earned income, even if the buyer has not paid the order.And if at the expense of the company carried out an advance payment for the goods, but the latter has not yet been shipped, it is the date of transfer of funds will be accounted for as income generation.
If we talk about individuals, namely individuals who are not entrepreneurs, the income - is the aggregate of all cash receipts (wages, more part-time work, gifts, etc.).If you take away from this sum payments in the form of taxes and social contributions, we obtain net income.And when this figure we subtract the cost of food, transportation, clothing and so on, it will remain (if you're lucky) the profits that can be postponed for more interest income.
