Effective management of income, expenses and financial results of the enterprise

Сулима, Мар'яна Олександрівна and Гвінсадзе, А.А. (2024) Effective management of income, expenses and financial results of the enterprise Європейський науковий журнал Економічних та Фінансових інновацій, 1 (13). pp. 188-199. ISSN 2617-8648

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Abstract

The effective operation of each business entity is measured by the amount of its profit. Undoubtedly, revenue, other income from operating activities, as well as income and expenses from financial and investment activities are also important. Now, more than ever, in the context of martial law, economic and political instability, it is important to assess them correctly and to effectively manage income, expenses and financial results. The article examines the essence of income, expenses and financial results. The study also summarizes modern approaches to the recognition of the economic categories “income”, “expenses” and “financial results”, considers classifications of these economic categories, and indicates methods and features of income and expense management at an enterprise. Thus, having studied the economic characteristics of enterprise income, the author identifies various approaches to the interpretation of this term. Based on the systematization of scientific approaches to the concept of “expenses”, it is concluded that expenses are a reduction in economic benefits during the reporting period in order to carry out its core business. It is found that cost management has a significant impact on the financial condition of an entity, so in order to optimize costs, an enterprise must build a clear control system. Meanwhile, income is an increase in economic benefits due to an increase in assets or a decrease in liabilities, which increases equity. Except, of course, for the increase or decrease in capital due to transactions related to contributions from founders. The methods of income and expense management at an enterprise according to both National Accounting Regulations (Standards) and International Financial Reporting Standards are considered. The importance of building a clear system of management of income, expenses and financial results at the enterprise is emphasized.

Item Type: Article
Uncontrolled Keywords: income; expenses; financial results; management system; management methods; accounting; analysis; control, NAS; IFRS
Subjects: Статті у базах даних > Index Copernicus
Статті у періодичних виданнях > Фахові (входять до переліку фахових, затверджений МОН)
Divisions: Факультет економіки та управління > Кафедра фінансів
Depositing User: Мар'яна Олександрівна Сулима
Date Deposited: 10 Oct 2024 12:34
Last Modified: 10 Oct 2024 12:34
URI: https://elibrary.kubg.edu.ua/id/eprint/49820

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