ACCOUNTING AND ANALYSIS AS TOOLS FOR MANAGING A COMPANY’S PROFITS

Inna Berzhanir Uman National University, 2, Sadova Str., Uman, 20300, Ukraine https://orcid.org/0000-0001-7035-1170

Keywords: Management, Analysis, Profit, Accounting

Abstract

The aim of this article is to systematize and summaries the theoretical aspects of corporate profit management, as well as to develop practical recommendations for its improvement.

The research has established that, in the current economic climate, business entities operate in a complex competitive environment, where financial performance is the key factor determining their viability and prospects for development. Profit plays a significant role in the system of financial indicators, as it characterizes the final outcome of an enterprise’s economic activity.

This is precisely why profit plays a crucial role in the system of financial indicators, as it reflects the final outcome of business operations and determines a company’s ability to invest, modernize its facilities, expand production, and maintain an adequate level of competitiveness. This is why the issues of generating, allocating, and effectively utilizing profit are vital to ensuring the stability of a company’s operations.

The dynamics of profit volumes of Ukrainian enterprises have been analyzed, and the factors causing these changes have been investigated. It has been established that the total volume of losses has also increased, a situation characterized by a severe economic shock caused by the full-scale invasion by the Russian Federation in 2022, as enterprises reduced production volumes, logistics faced serious obstacles, and demand and exports also declined significantly. The profitability of Ukrainian enterprises was also analyzed across individual sectors.

This paper examines the components of a profit management system, specifically: profit planning, cost management, break-even management, corporate dividend policy, profit distribution management, and tax optimization. The application of these components will enable the adoption of well-considered and effective management decisions aimed at the entity’s development.

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Author Biography

Inna Berzhanir, Uman National University, 2, Sadova Str., Uman, 20300, Ukraine

PhD (Economics), Associate Professor

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