Nowadays, the concept of profitability is more relevant than ever. And if earlier income was a purely entrepreneurial concept, now we are all somehow connected with it.
In essence, income is the sum of cash receipts.or material values of a specific entity (individuals, legal entities or the state as a whole) for a certain period, which is the result of any activity permitted by law.

In fact, this indicator is oftenconfused with income, but in practice these are different concepts, and profit is just the end result of the enterprise. It is calculated as the income from which all expenses and obligatory payments have been deducted. In this case refers to the net profit.
What then is the net income?These are all monetary or material receipts, with the exception of some mandatory payments (value added tax, excise duty), as well as other deductions from income. Such a calculation sequence can be seen in the Statement of Financial Results. And where, if not there, to seek an answer to the question of the formation of income and profit?
Consider these concepts by example.

Such an algorithm concerns financial accounting.In the tax system, everything looks a little different. Due to the fact that in her income is any cash flow to the account, and in the financial accounting system - on the first event. That is, if the goods are shipped, then its sale value is displayed as income received, even if the buyer has not yet paid the order. And if the advance payment for the goods has been made to the firm’s account, but the latter has not yet been shipped, then the date of the transfer of funds will be considered as income.
