Profit by line of business

Profit and loss statement: how much your business earns
Every businessman wants to know his profit and manage it. A tool called the income statement (OPI) helps to calculate it correctly. We tell you what it is, why it…

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On the preparation of an investment declaration by a SEZ participant
In accordance with Part 2 of Art. 13 of the Federal Law of 29.11.2014 No. 377-FZ "On the development of the Republic of Crimea and the federal city of Sevastopol…

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Opportunities for mutual funds for financing in a group of companies
All this is really applicable to mutual funds. A mutual fund, as a tool, has unique properties. However, the high cost of "maintenance" due to the need to comply with…

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Convertible loan as an investment tool
Тtraditionally, investment transactions are realized through ordinary loans or direct investments (creation of a joint venture or purchase of a stake in an existing company). Today we will consider a…

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Control of operations with cash and property
The institution of mandatory control over transactions with money and other property is one of the basic elements of the functioning of the Russian system for countering the legalization and…

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Auditor VS Management company: when which instrument to choose

Let us recall that in addition to the general meeting of its members, the board of directors and the director, the structure of the company’s management bodies can include the Auditor, whose importance for the founder of a medium-sized business has been undeservedly forgotten. But it is precisely the Inspector who can become the eyes and ears of the owner, controlling the activities of a team of hired top managers.

Often, the owner of a business, and even more often the owner of several businesses, thinks – it would be good not to take part in the current operational activities, entrusting routine processes to hired top management. Continue reading

Operating leverage: what happens to profit margins if revenues fall. And if it grows up?

Usually business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company earned, and profit shows how much is left after deducting expenses.

Most likely, if the revenue is higher, then the profit will increase. On the contrary, it also works: if the revenue falls, then the same will happen with the profit. And everything would be very simple if there was a direct relationship between the indicators. But no: the revenue may sink just a little, and this will lead to large losses. Continue reading

Direct and indirect costs or why it is impossible to count net profit by line of business

In companies with several divisions and branches, it is difficult to calculate the profit of each. You can subtract all expenses from all income and get some value. But this approach is not entirely correct. Rather, it would be to understand the direct and indirect costs, calculate the gross profit and only in this way determine the efficiency of the business.

Why exactly and what all these parameters mean – we will consider in this article. Continue reading

The second rule of building a group of companies without signs of artificial fragmentation.

The second rule concerns what tax lawyers and consultants usually call a “business goal”, which taxpayers often start looking for exactly at the moment when they receive a notification about the appointment of an on-site tax audit.

What usually goes wrong:

there is no causal relationship between decisions made to change the legal structure of a group of companies and changes in the effectiveness of business processes; Continue reading

The third rule for building a group of companies without signs of artificial fragmentation.

Let’s turn to business process notation again. Earlier we decided on the inputs, the activity itself, and the outputs (goals). However, in arbitration practice on artificial fragmentation of a business, there are several criteria at once for charges related to management and ownership. Rule # 3 is about management and owners.

What’s wrong here:

in order to avoid interdependence between the companies of the group, so-called proxies are introduced into the ownership structure – nominal, that is, they do not really participate in business processes, packaged in a specific legal entity. Continue reading

Auditor VS Management company: when which instrument to choose
Let us recall that in addition to the general meeting of its members, the board of directors and the director, the structure of the company's management bodies can include the…

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How to get a tax deduction
Mortgages are now in great demand and many banks offer borrowers different conditions. It often happens that you take a mortgage at one percent, then time passes and another bank…

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Building material for the Group of Companies
Medium business cannot successfully exist within a single legal entity. A group of subjects is always required, otherwise it is impossible to resolve individual issues of property, management and other…

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