The budget of income and expenses of any enterprise is divided into two main parts, revenue and expenditure. Revenues and expenses are special economic aspects of the distribution of a part of GDP or single economic categories, each of which is responsible for a certain part of the development of the enterprise. Revenues are the financial base of the organization’s activities, and expenses are the satisfaction of social and production needs.
The budget of revenues and expenses of a state-level organization implies several legal issues, which are stipulated in the relevant documents and requirements. The budget code of the Russian Federation established a procedure in which it is indicated that the income of budgetary organizations from entrepreneurial activity is subject to mandatory accounting, for which the budget of the income and expenses of this enterprise is responsible. The budget of revenues and expenses of the Russian Federation represents the unity of state legislation, various forms of reporting and budget classification of the system, and some other aspects of state activity.
The main condition for the effectiveness and sufficient functioning of the entire budget process is the timely regulation of the sources of income of the enterprise and analysis of the goals of necessary expenses. A well-formed budget of income and expenses makes it easier to verify budget data, estimates, dynamics of expenses and income of the enterprise. For convenience, a certain classification is provided, which allows you to compare income and expenses for the submitted reports.
The budget of income and expenses, as well as the redistribution of profit, occupies almost the main place in accounting. Moreover, its main function is to reflect and determine the financial results of the entire enterprise for the past period. At the same time, the income of the enterprise is understood as the growth of economic benefits resulting from the receipt of assets, leading to an increase in the financial well-being of this organization. The expenses of organizations are the reduction of economic benefits due to the loss of assets, leading to a decrease in the financial capital of this enterprise. The budget of income and expenses is based on the main principles of accounting or the temporary certainty of the facts of organizational and economic activity.
An important moment in the organization of accounting for budget funds is the rule of assessing the value of income and expenses. In this case, the amount of revenue is nothing other than the cost received by the organization in exchange for the goods, products or services it offers. Types of income and expenses depending on the lines of activity are divided into expenses and income from ordinary activities and from other income. At the same time, the balance of income and expenses is a very fragile substance, since it can vary significantly in different limits even within one month.
Based on these and other principles and rules, the budget of income and expenses can help identify the financial result of the enterprise for the past period. According to the basic principle of accounting - the principle of temporary certainty of the facts of organizational and economic activity, it is possible to determine the financial position of an enterprise at the moment with the least accuracy, and according to the rule of recognition and determination of expenses and income, the desired value can be calculated without errors.
The budget of the income and expenses of the enterprise is an important component of the proper development of any enterprise, which carries the most important information about the reliability and profitability of this organization.