PROFIT MANAGEMENT AT THE ENTERPRISE

Abstract

In the article it is stressed that profit is the main source of enterprises’ own financial resources, as well as a means to ensure expanded reproduction. It serves as an indicator of the efficiency for both the production processes of individual enterprises and the  economy as a whole. All this determines the urgency of issues related to improving the efficiency of the enterprise’s profit management. The authors analyze different approaches of the interpretation of the definition of term "profit". The most accurate definition is one, according to which profit is the amount at which the income exceeds the costs associated with them. In addition, profitability serves as a qualitative indicator, a measure of the effectiveness of the business entity. The main functions of profit were determined as distributive, valuing and stimulating. Profit management is defined as the process of developing and making managerial decisions on all major aspects of its formation, distribution and use. The purpose of profit management was to determine the ways of its most effective formation and optimal distribution, aimed at ensuring the development of the enterprise and its market value growth. Accordingly, the main tasks of managing profits were formed. Moreover, the authors have structured the process of managing the company's profit taking into consideration the stages of its formation and distribution Also, the article analyzed the main components of the mechanism of managing the profit of the enterprise. At the end, a comparative analysis of the conceptual approaches to the enterprise’s profit management were conducted.