Selling expenses are one of the components of all costs of any enterprise. The possibility of expanding production in the future, improving technologies and equipment, or trivially increasing profits largely depends on the rationality of spending financial resources in terms of commerce. Therefore, the accounting department of the organization should conduct a thorough analysis when taking into account this type of cost.
Selling expenses include those costs associated with the transportation and further sale of finished products. Cost planning allows not only to understand how rational they are, but also to identify reserves for improving this area in the enterprise. This will help regulate the company's budget and increase revenue.
There are separate items of expenses that are strictly regulated by legislative acts.
Accounting for business expenses at the enterprise must comply with the main principles. So, the reflection of costs in the financial statements should be complete, all information should be true and accurate, and most importantly, the document should be drawn up on time, and the reports should be ready at a specific date indicated by the management. The timeliness of the submission of the report plays a crucial role for the effectiveness of the subsequent analysis. In addition, all business expenses reflected in the documentation should be supported by relevant documents or primary information. Without them, any entry in the accounting statement is considered invalid.
So, the structure of commercial costs includes the costs of the enterprise for the sale of products, including attracting potential consumers through advertising. Currently, there are many ways to advertise a particular company and its products. The most common methods are to notify the target audience of updates via television, the Internet and SMS mailing. In addition to advertising costs, an enterprise may spend money on the purchase of containers and cargo transportation if these services are provided by third parties.
Most types of products are able to deform during loading, unloading, transportation, or under the influence of natural factors. Selling expenses include a cost item such as biodegradation. Each enterprise, at its discretion, sets the standards within which products can be written off. These are the so-called norms of natural attrition. Their value is valid throughout the reporting year, after which it is revised.
Cost accounting for an advertising campaign also depends on certain limits. The Ministry of Finance sets a specific percentage of revenue, which is the maximum cost for these purposes. If the amount of money intended for the implementation of the advertising policy meets the established limit, then the specialist shall reflect it in the column "Selling expenses". Otherwise, the difference between the amount of funds spent and the limit received is calculated, and then the amount of profit is reduced by the value of this difference.
If we talk about modern accounting, it is most likely focused on government audit services, mainly on the tax authority. Far from always compiled reports are true, including in the article "Selling expenses". This state of affairs suggests that enterprises are not interested in the rational use of their resources and identifying reserves to increase profits.