Ruslana Momot 

Faculty: economics

Speciality: Economics of enterprise

Scientific adviser: Andrey Meshkov 

"Recommendations of the management of the profit at the enterprise"

(Summary of research and developments)

Introduction (Motivation)

With the rapid development of market economy the role and place of profit in the economic process is continuously growing. It is the main motivation of business enterprises and ensures the interests of all stakeholders involved in these activities, namely: business, enterprise personnel and state. Profit is not only the stimulus of economic activity of enterprises, but also a major source for their activities. Thus, great importance is the need to develop recommendations to improve the efficiency of formation, distribution of profits and profit–maximization.The main aspects of the essence, significance and importance of profit and the problem of its increase and optimize are the subject of many works of researchers. Among Western economists study income is reflected in the works of Babo, LR Brayley, E. Brighema, A. Gropelli, C. Drury, B. Kolassa, S. Myers, S. Ross, R. Holt. Among domestic researchers were concerned about the problem of profit IA Blank, FF Efimova, SF Pokropivny, VO Protopova, GV Savitskaya, AN Polansky, S. Mocherny, IS Tsal–Tsalko, A. Sheremet, VI Ivashchenko, MS Moky and many others. However, unity of opinion among scholars regarding the role and place of profit management, mechanisms of influence on it as part of enterprise management is not.

Profit is a key indicator of economic activity of enterprises and at the legislative level is defined as the main purpose of creating businesses. The profit is living and developing any business venture, because it is the main source of replenishment of financial resources of enterprises, the formation of centralized and decentralized funds . The profit shapes the budgetary resources of the state, by the expansion of enterprises, financial incentives for employees, the solution of socio-cultural activities, etc. In this regard, obtaining the maximum profit is concerned not only management and labor collectives of enterprises, but the state as a whole. That is why both of questions are important for increase the profitability of businesses. The problem of competent and efficient management of profit is correct at the present stage of development of Ukrainian economy. Mechanism for the effective management of profits should help to improve production efficiency and promote its development. On the majority of Ukrainian enterprises this is the most important aspect, which is given insufficient attention.

Pendency of many of these problematic issues profit management at the enterprises of Ukraine determined the choice of topic work.

The purpose and objectives of the study

The aim is to reflect and develop the theoretical foundations and develop guidelines for management and maximization of profits of enterprises through improvements in policies of its formation and distribution.

To achieve this goal, the following tasks:

1. Disclosure of the nature and characteristics of profit–management company;
2. Defining the role and nature of cost–management system in the management of enterprise profits;
3. Analysis of legal aspects of the formation of profit in the enterprise;
4. Assessment of existing methods of profit–management;
5. Study the current state of formation and distribution of profits of enterprises in Ukraine;
6. Analysis of the profit-management and the cost–management of a concrete example of the company;
7. Providing scientific and practical recommendations on management of profit;
8. Providing advice on the formation and distribution of profits in the enterprises of Ukraine in general and in selected enterprises;
9. Calculation of the effectiveness of the advice.

Object and subject of study

The object of research is the process of shaping and improving the mechanism of profit management at the company.

The subject of the study are the main features and methods for managing earnings in the enterprise.

Methods of investigation

Methodological basis of work is presented a set of general scientific and special methods used in the knowledge of the socio–economic processes and phenomena, namely: scientific generalization, comparison, systems analysis and methods of analysis and synthesis, of general scientific abstraction, induction and deduction in the development of recommendations of profit–management at the company. Information base for research consists of scientific papers by foreign and Ukrainian economists on the financial management of enterprises, the economic aspects of managing revenues and expenditures of the enterprise, strategic management and planning, analysis, formation and use of profits. We used the analytical and information materials published in Ukrainian and foreign periodicals, materials provided by computer network Internet.

Scientific novelty

This work is dedicated to improving the redundant system profit–management, development of a new mechanism for profit management in an integrated manner, as well as the transfer of the identified patterns in the modern business environment.

Conclusion

In a market economy, net income is the basis for economic and social development of the enterprise. Steady increase in net income — is a stable source of funding for production development (reinvested earnings) dividend payments, the creation of reserve funds to meet social and material needs of employees, charitable activities. Net income — a key indicator to assess the operational and financial activities of enterprises, because it reflects the degree of activity and financial health, as well as the effectiveness of management.

Analysis and targeted planning indicators such as revenue and profitability is an integral part of enterprise strategy management profit. Implementation of the strategy profit management is carried out directly in the process of financial-economic activities, providing ongoing solvency of enterprises through the Financial Planning.

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