Commercial expenses and the need to analyze them

Commercial expenses are one of the components of all costs of any enterprise. From the rationality of spending financial resources in the area of commerce, the possibility of expanding production in the future, improving technology and equipment, or a banal increase in profits depends to a large extent. Therefore, the accounting department of the organization should conduct a thorough analysis when accounting for this type of costs.

Commercial expenses include those costs of the enterprise that are associated with the transportation and further sale of the finished product. Cost planning allows not only to understand how rational they are, but also to identify reserves for improving this direction in the activities of the enterprise. This will help to regulate the company's budget and increase revenues.

There are separate items of expenditure that are strictly regulated by legislative acts.

The accounting of commercial expenses at the enterprise should correspond to the main principles. Thus, the reflection of costs in the financial statements should be complete, all information - truthful and accurate, and most importantly, the preparation of the document should be done on time, and reporting - be ready for a certain date specified by management. Timeliness of the report is crucial for the effectiveness of subsequent analysis. In addition, all commercial costs reflected in the documentation must be supported by appropriate documents or primary information. Without them, any entry in the accounting sheet is considered invalid.

So, the composition of commercial costs includes the costs of the enterprise for the sale of products, including the attraction of potential consumers through advertising. Currently, there are many ways to advertise a particular company and products. The most common methods are to alert the target audience about the news via television, the Internet and SMS. In addition to advertising costs, the company can spend money on the purchase of packaging and transportation of goods, if these services are provided by third-party organizations.

Most types of products are able to deform in the process of loading-unloading, transportation or under the influence of natural factors. Commercial expenses also include such an expense item as biological loss. Each enterprise, at its discretion, establishes standards within which products can be written off. These are the so-called norms of natural attrition. Their value is valid for the entire reporting year, after which it is revised.

Accounting for the cost of an advertising campaign also depends on certain limits. The Ministry of Finance establishes a specific percentage of revenue, which represents the maximum amount of costs for these purposes. If the amount of money intended for the implementation of the advertising policy corresponds to the established limit, the specialist reflects it in the column "Commercial expenses". Otherwise, the difference between the amount of money spent and the limit received is calculated, and then the profit is reduced by the amount of this difference.

If we talk about modern accounting, then it is most likely focused on public inspection services, mainly on the tax authority. Far from always compiled reports correspond to reality, including in the article "Commercial expenses". This state of affairs suggests that enterprises are not interested in rational use of their available resources and in identifying reserves for increasing profits.