According to accounting, according to the regulation, the classification of income distinguishes several groups:
- By ordinary activities of the organization:
1. proceeds from the sale of goods and products
2. income for work performed
3. revenue related to services
1. Operating (proceeds from the sale of fixed assets for the rental of property)
2. Non-operating (fines and penalties for violation of the terms of contracts, accounts payable with expired statute of limitations, previous years' incomes that were revealed in the current year, compensation for losses, exchange rate difference)
3. Extraordinary (material values that survived after the fire remained after the write-off of fixed assets)
In accounting policies, the order of the enterprise must reflect what relates to other income.
For taxation, the following income classification is provided:
- From the sale of goods, products, works, services, property rights
- Non-operating income (from the rental of property, gratuitous receipt of property, equity)
- Income not taken into account when determining the tax base (for property obtained as collateral for loans and borrowings in the form of a contribution to the authorized capital)
According to the frequency of receipt, all incomes are divided into current and capitalized.
The classification of the enterprise’s income in accounting and tax accounting is somewhat different, that is, part of the income will be taken into account when calculating the organization’s profit balance, but will not be taken into account when determining the tax base of property when calculating the enterprise profit tax.
Amounts of VAT, excise taxes, advances, deposits, repayment amounts of loans, loans and others are not income of the enterprise.
All commercial organizations in practice use the classification of income by industry:
- trading
- production
- for the provision of services.
Each area of activity has its own benefits and income tax rates . And in modern conditions, in addition to the main activity, many enterprises are also engaged in auxiliary activities. And if income is more than 5% of the total, then it is necessary to keep a clear record for each non-core activity.
By type of activity, the income classification of any organization reflects the main, investment and financial activities of the enterprise. Under investment activities understand income from the sale of fixed assets, equity in other organizations, income from deposits and securities. Income from financial activities is associated with the issue of shares, bonds, raising a loan, paying dividends, using interest on deposits.
The classification of budget revenues necessarily provides the administrator code for budget revenues, groups, articles, programs. So, the main administrators of revenues are state authorities, local self-government, the central bank of the country, governing bodies of state non-budget organizations, budgetary institutions that monitor the correct calculation, timely payment, collection and refund of overpaid payments, fines, penalties.
All budget revenues are divided into large groups:
- Tax revenues (for profit, for goods, for property, registration and licensing fees)
- Non-tax revenues (revenues from municipal property, fines, damages, for the sale of land and intangible assets, administrative fees)
- Gratuitous transfers (from non-residents, from state and non-state organizations, from the return of subsidies of previous years)
- Budget Trust Fund Revenues
- Business income