🔹 1. Expenses (Costs) – Outflows
Main types of expenses:
| Expense Type | Examples |
|---|---|
| ✅ Fixed Expenses | Rent, employee salaries, internet, licenses |
| ✅ Variable Expenses | Raw materials, delivery, advertising, packaging |
| ✅ Initial Expenses | Equipment, furniture, website creation, patents, registration |
| ✅ Unexpected Expenses | Repairs, equipment breakdown, fines |
➡ Tip: Record all expenses monthly – you can use Excel, Google Sheets, or accounting software for this.
🔹 2. Income (Revenues) – Inflows
Types of income:
| Income Type | Examples |
|---|---|
| ✅ Main Income | Revenue from product sales or services provided |
| ✅ Additional Income | Advertising, extra services, affiliate income |
| ✅ One-time Income | Grants, promotions, special orders |
➡ Tip: Track income from each customer or sale – this helps identify your most profitable products/services.
🔹 3. Profit – Net Income
📌 Formula:
Profit = Total Income – Total Expenses
| Situation | Analysis |
|---|---|
| Positive profit (>) | The business is generating a profit |
| Zero or negative profit (<) | Expenses exceed income – need to analyze reasons |
🔹 4. Break-even Point – When You Stop Losing Money
This is the point where your business is neither losing nor making a profit.
📌 Formula:
Break-even = Fixed Expenses / (1 - Variable Expense Percentage)
Knowing your break-even point helps you understand when your business will start making a profit.
🔹 5. Convenient Methods for Analysis:
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📈 Excel / Google Sheets – Create simple tables to track income and expenses.
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🧾 1C or Accounting Software – For managing taxes and financial documents.
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📊 Graphs and Charts – For visual analysis and reporting.
💡 Tips:
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Prepare a monthly financial report.
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Always look for ways to reduce expenses.
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Identify your most profitable products/services and focus on them.
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Monitor the market and competitor actions.