INTRODUCTION

The subject of study in this course work is profit.

Profit is the most important category of the market economy and one of the most important indicators of the enterprise.

In the transition to a market economy, the main goal of all commercial enterprises is to make a profit, i.e. such income that would exceed the expense, and with a more stable position of the enterprise in the market, the main goal becomes profit maximization.

For the successful and efficient functioning of the enterprise, to meet the needs of employees of the enterprise, consumers, social needs, funds are needed. Such a source of funds for a commercial enterprise is profit. But in order to exist on the market for more than a dozen years, an enterprise must be able to competently manage profits and manage its profits. This is the relevance of this topic.

The purpose of this course work is to study the nature and types of profit, as well as the mechanisms of profit management in the enterprise.

Profit of an entrepreneurial organization and its types

There are many interpretations of the term "profit", which depend on the area or scope of this term.

In a market economy, the concept of "profit" is associated with remuneration for entrepreneurial activity: profit is the difference between revenue and all costs for the production and financial activities of the enterprise. The profit of the enterprise characterizes the excess (if vice versa, then the loss) of revenue over expenses, is the main indicator of performance and reflects the purpose of entrepreneurship.

The concept of "profit" must be considered taking into account its multidimensionality, from three points of view:

• 1. Profit as an economic category;
• 2. Profit as a financial result;
• 3. Profit as a form of cash savings.

Profit as an economic category is a set of economic, distribution, financial relations that develop over the formation, distribution and use of a part of the newly created value, which acts as an increment in the amount of funds advanced for the implementation of economic activities, or as an excess over those incurred in the course of this activity and related with it the costs of production.

Profit, as a financial result, is the economic result of the economic activity of the enterprise expressed in monetary terms. However, the importance of profit as a generalizing qualitative indicator should not be exaggerated.

And, finally, profit as a form of monetary savings of an enterprise is a source of financial resources directed to consumption and accumulation.

Consider the classification of types of profit on various grounds, table. one.

Tab. 1 - Classification of types of profit according to various criteria

The general concept of "profit" refers to its most diverse types, currently characterized by several dozen terms. All this requires a certain systematization of the terms used. Below is a more detailed classification of certain types of enterprise profit:

• 1. According to the sources of profit formation in the context of the main activities of the enterprise, the following are distinguished:
  • operating income,
  • investment;
  • financial activities.

It may seem that this classification is a repetition of the previous one, but this opinion is erroneous. Only the first positions of the systematization of profits on these grounds coincide, since operating profit is the result of operating (production and marketing or the main for this enterprise) activity.

With regard to investment activities, its results are reflected partly in profit from non-operating operations (in the form of income from participation in joint ventures, from holding securities and from deposits), and partly in profit from the sale of property (such a sale of assets is of the nature disinvestment and is the subject of investment activity of the enterprise).

• 2. According to the composition of the elements that form profit, there are:
  • margin,
  • Gross (balance);
  • The company's net income.

These terms usually mean a different degree of "cleaning" the net income received by the enterprise from the costs incurred by it in the course of economic activity.

So, marginal profit characterizes the amount of net income from operating activities (gross income of the enterprise from this activity, reduced by the amount of tax payments due to it) minus the amount of variable costs.

Gross profit characterizes the amount of net income from operating activities minus all operating expenses, both fixed and variable (balance sheet profit, respectively, is the difference between the total net income of the enterprise and the total amount of its current costs). Simply put, gross profit is defined as the difference between the proceeds from the sale of goods, products, works, services (minus VAT, excises and similar obligatory payments) and the cost of goods, products, works and services sold.

Gross profit is calculated by the formula:

Net profit characterizes the amount of balance sheet (or gross) profit, reduced by the amount of tax payments due to it. Net profit remains at the disposal of the enterprise.

Net profit is calculated by the formula:

• 3. By the nature of taxation of profits, there are:
  • taxable;
  • the non-taxable part of it.

Such a division of profit plays an important role in the formation of the tax policy of the enterprise, as it allows us to evaluate economic alternative operations from the standpoint of their final effect.

• 4. According to the nature of the inflationary "cleansing" of profits, there are:
  • nominal view;
  • real look.

Real profit characterizes the size of its nominal amount received, adjusted for the inflation rate in the corresponding period.

• 5. For the considered period of formation, the following are distinguished:
  • profit of the previous period (i.e. the period preceding the reporting period),
  • profit of the reporting period;
  • profit of the planned period (planned profit).

Such a division is used for the purposes of analysis and planning to identify the relevant trends in its dynamics, build an appropriate basis for calculations, etc.

• 6. According to the regularity of formation, there are:
  • The profit generated by the company on a regular basis
  • so-called "extraordinary" profit.

An example of an extraordinary profit is the profit received from the sale of one of the branches of the enterprise.

• 7. According to the nature of use in the composition of profit remaining after taxes and other obligatory payments (net profit), they distinguish:
  • the capitalized part;
  • part consumed.

Capitalized profit characterizes that amount of it, which is aimed at financing the growth of the company's assets, and consumed profit - that part of it that is spent on payments to owners (shareholders), personnel or social programs of the enterprise.

• 8. According to the value of the final result of management, there are:
  • positive profit (or actual profit);
  • negative profit (loss).

It should be noted that this list of types of profit is not exhaustive and does not reflect the whole variety of types of profit used in scientific terminology and business practice.

Profit acts as the main motive for entrepreneurial activity. The entrepreneur is more willing to engage in any activity, the greater the amount of profit that this activity brings. Economists use the term "profit" to refer to the difference between a firm's total revenue and its costs.

Prior to production, property rights belong to the owners of economic resources (landowners, capitalists, workers). In the process of production, the right to use the factors of production is transferred under certain conditions to the entrepreneur, who must provide the owners of resources with income in the form of land rent, interest and wages. As a result, there are two types of monopoly on each of the factors of production: the monopoly of property and the monopoly of management. The monopoly of ownership of economic resources is realized in the corresponding income (rent, interest, wages). The monopoly of the entrepreneur on these resources is a temporary monopoly of management and the form of its implementation is entrepreneurial income.

Entrepreneurial income- part of the profit from entrepreneurial activity, which entrepreneurs themselves receive for risk, innovation, organization of production and labor. Entrepreneurial income, on the one hand, is a reward for demonstrated entrepreneurial abilities, and on the other hand, the result of the final distribution of the enterprise's profits.

Entrepreneurial income includes:

normal profit. If its value is insufficient, then the entrepreneur will engage in another, more profitable business or abandon entrepreneurial activity altogether in order to receive wages, working for hire;

economic income, i.e., income received in excess of normal profit. This part of entrepreneurial income is a function of economic profit. Recall that economic profit is the difference between the gross income (revenue) of the firm and its economic costs (the sum of both external and internal costs). Sometimes it is also called superprofit.

Quantifying entrepreneurial income at the micro level is somewhat difficult. Recall that the accounting and economic interpretation of profit do not coincide. For an accountant, entrepreneurial income is identified with the retained earnings of the enterprise for the reporting period. The economist, on the other hand, interprets profit more narrowly, considering only economic profit as income.

Entrepreneurship as a specific factor of production is the property of the entrepreneur, it has a certain form of implementation - in the form of entrepreneurial income. Entrepreneurial income is the main goal of entrepreneurial activity.

Profit in the economy performs a number of important functions:

It is the engine of economic development. In a market economy, it is from profit, or rather from its size, that it depends what benefits and in what quantity will be produced, since each entrepreneur is looking for the quantity of goods and the price at which he can get the maximum profit;

Promotes efficient resource allocation. Resources are allocated to firms and industries based on the latter's ability to pay. The willingness of firms to pay for economic resources is, in turn, determined by their profitability. Only the company whose products are in demand will be profitable. Efficient allocation of resources means that they are directed to the production of exactly the products that society needs today;

Stimulates innovation. The expectation of profit motivates the entrepreneur to innovate. Today, all effective enterprises, all successful entrepreneurs and managers are engaged in innovative activities. Entrepreneurial firms that are the first to master effective innovations have the opportunity to receive additional income and maximize their profits.

Profit acts as the main motive for entrepreneurial activity. The entrepreneur is more willing to engage in any activity, the greater the amount of profit that this activity brings. Economists use the term "profit" to refer to the difference between a firm's total revenue and its costs.

Prior to production, property rights belong to the owners of economic resources (landowners, capitalists, workers). In the process of production, the right to use the factors of production is transferred under certain conditions to the entrepreneur, who must provide the owners of resources with income in the form of land rent, interest and wages. As a result, there are two types of monopoly on each of the factors of production: the monopoly of property and the monopoly of management. The monopoly of ownership of economic resources is realized in the corresponding income (rent, interest, wages). The monopoly of the entrepreneur on these resources is a temporary monopoly of management and the form of its implementation is entrepreneurial income.

Entrepreneurial income- part of the profit from entrepreneurial activity, which entrepreneurs themselves receive for risk, innovation, organization of production and labor. Entrepreneurial income, on the one hand, is a reward for demonstrated entrepreneurial abilities, and on the other hand, the result of the final distribution of the enterprise's profits.

Entrepreneurial income includes:

normal profit. If its value is insufficient, then the entrepreneur will engage in another, more profitable business or abandon entrepreneurial activity altogether in order to receive wages, working for hire;

economic income, i.e. income received in excess of normal profit. This part of entrepreneurial income is a function of economic profit. Recall that economic profit is the difference between the gross income (revenue) of the firm and its economic costs (the sum of both external and internal costs). Sometimes it is also called superprofit.

Quantifying entrepreneurial income at the micro level is somewhat difficult. Recall that the accounting and economic interpretation of profit do not coincide. For an accountant, entrepreneurial income is identified with the retained earnings of the enterprise for the reporting period. The economist, on the other hand, interprets profit more narrowly, considering only economic profit as income.

Entrepreneurship as a specific factor of production is the property of the entrepreneur, it has a certain form of implementation - in the form of entrepreneurial income. Entrepreneurial income is the main goal of entrepreneurial activity.

Profit in the economy performs a number of important functions:

It is the engine of economic development. In a market economy, it is from profit, or rather from its size, that it depends what benefits and in what quantity will be produced, since each entrepreneur is looking for the quantity of goods and the price at which he can get the maximum profit;

Promotes efficient resource allocation. Resources are allocated to firms and industries based on the latter's ability to pay. The willingness of firms to pay for economic resources is, in turn, determined by their profitability. Only the company whose products are in demand will be profitable. Efficient allocation of resources means that they are directed to the production of exactly the products that society needs today;

Stimulates innovation. The expectation of profit motivates the entrepreneur to innovate. Today, all effective enterprises, all successful entrepreneurs and managers are engaged in innovative activities. Entrepreneurial firms that are the first to master effective innovations have the opportunity to receive additional income and maximize their profits.

Sources of profit

K. Marx in "Capital" presented a scheme for the production of surplus product or surplus value. In the process of production, the worker creates by his labor a value greater than the value of the necessary product. The product produced by the worker in excess of the necessary product is called surplus, and its value is called surplus value. According to Marx, this surplus value is profit, and its source is the unpaid surplus labor of hired workers. In other words, the Marxist interpretation of profit is based on the exploitation of wage workers. The surplus value includes the exploitation of hired labor, and the return on capital, and the payment for land, and the reward of the entrepreneur for risk, innovation and the organization of production. Part of the profit received as a result of economic activity is the income of the owner of the means of production or the entrepreneur as the organizer of production.

According to Marx's theory, entrepreneurial income- a converted form of profit, which is the remuneration of the capitalist.

Modern economic thought considers profit as income for entrepreneurial activity, understanding it as a payment for risk, innovation and business organization. The explanations are as follows:

risk. In a static economic system characterized by immutable parameters, uncertainty and risk are minimized. There is no room for profit in such an economy. In a dynamic economy, the future is always uncertain: consumer tastes, economic conditions, resource prices, etc. may change. In other words, such an economy is characterized by significant uncertainty, and entrepreneurial activity in such conditions is inevitably fraught with risk, which generates economic profit;

The organization of all resources in a single production process is carried out by the entrepreneur.

The entrepreneur himself provides a special resource - entrepreneurial ability and has the right to count on entrepreneurial income, like other owners of resources on the corresponding income: wages, rent and interest.

Entrepreneurial income includes normal and economic profits.

In modern economic theory the receipt of economic profit is associated with two main factors:

• entrepreneurial risk;
• its monopoly power in the market.

It is necessary to reveal the influence of these factors on obtaining economic profit and show their fundamental differences.

In a dynamic economy, uncertainty factor and the future cannot be accurately predicted. Therefore, the entrepreneur takes the risk and responsibility for making decisions. Hence, part of economic profit can be considered as revenue per adoption this risk entrepreneur.

Distinguish between insured and non-insurable risks. Insured- these are the risks of fire, flood, accident, etc., which can be insured against by paying insurance premiums to insurance companies. They cannot be considered a source of economic profit, since insurance payments only compensate for the damage caused by the insured event.

The source of economic profit is uninsurable risks- these are, first of all, risks associated with cyclical and structural changes in the economy as a whole, i.e. with the action of factors external to the entrepreneur(changes in government economic policy; inflation rate; unemployment rate; tastes, preferences and fashion of buyers; market conditions, etc.). In addition, uninsurable risks include risks associated with the entrepreneur's own initiative and dependent on it (introduction of new technology, renewal and expansion of the product range, development of new markets, etc.).

important source of economic profit is also the existence of markets of imperfect competition, firms have monopoly market power. The monopolist can limit production and raise the price in order to obtain monopoly profit.

Monopoly market power allows the entrepreneur to reduce uncertainty and its consequences, since the monopolist and oligopolists largely control the market.

There are important socio-economic differences between the two reviewed sources of economic profit- the risk of the entrepreneur and monopoly market power.

When an entrepreneur assumes risks associated with the action of factors external to him or with his own initiative, he performs the functions necessary for society: he takes into account changes in the state of the economy, market conditions, fashion, demand for products; introduces new equipment and progressive technology, improves the quality of products and expands their assortment, etc. The solution of these problems contributes to the development of the economy as a whole, to an increase in the standard of living of the population.

If an entrepreneur receives economic profit as a result of using his monopoly market power, limiting the volume of production and raising prices for products, then he performs functions that are negative for society, since as a result, resources are not distributed efficiently in the economy, unemployment and inflation increase, and the standard of living of the population decreases. .

The desire for maximum profit is the main goal of the company in the conditions of the market mechanism. It has an impact on the distribution of resources, and on scientific and technological progress, and on the efficiency of social production. At the same time, we should not forget about the negative impact of the desire of firms for profit, especially in the conditions of the prevalence of markets of imperfect competition, on the fair distribution of income in society, on the state of the environment, on unemployment, etc. Therefore, the natural desire of firms for profit should be accompanied by the government's socially oriented economic policy.

Small and medium-sized companies in Russia are an integral part of the economy. Domestic entrepreneurs are actively developing new market niches and successfully scaling up their existing business. It is clear that the organization and conduct of one's business implies taking into account many features and subtleties in the management of the company, the key position among them is accounting for income and expenses.

Entrepreneurial income and its components

One of the main forms of business is individual entrepreneurship. The number of merchants in the Russian Federation today reaches 3.8 million people. The day will come when small business will become the growth point of the Russian economy.

The global goal of any business is to generate income. Actually, income is considered to be a payment for the pooling of material and labor resources, for the risk of doing business, as well as for monopoly power. From the point of view of economic theory, financial receipts can be considered as a combination of two components:

• profits that "finance" the conduct of this particular type of business. Such receipts are included in the internal costs of the organization and are called "normal profit";
• profit received in addition to the "normal profit", that is, the difference between the revenue received and the organization's costs (both external and internal). This component of entrepreneurial income is called "economic profit".

Entrepreneurial income is not complete without innovation, stimulates economic development, rationally allocates resources

Entrepreneurial income and its functions

The IP income has a rather serious mission, since its receipt contributes to innovative processes, the optimal allocation of resources and, finally, initiates economic development.

The introduction of innovations in the business process allows you to reduce the unit costs per unit of production, ensuring the receipt of large amounts of profit. Engineering services, the use of logistics technologies give the company a lot of advantages over competitors.

Further, when planning production indicators, the businessman relies on a stable demand for manufactured products. And the attracted resources are used to produce relevant goods, thereby ensuring their effective distribution.

Finally, income is a "health indicator" of the enterprise, determining what and in what volumes will be produced.

To develop business, to bring innovations in production, to promote the rational distribution of resources - these are the tasks of entrepreneurial income.

Close to ideal business development formula: at least 25% of income is directed to expanding production and conquering new markets

IP income

“How much do you earn?” is by no means an idle question. A lot of things depend on the amount of income received: both the amount of deductions and the possibility of applying the tax regime with attractive conditions.

The income of an entrepreneur is recognized as all cash receipts from the sale of goods, the provision of services, the performance of work, as well as the gratuitous receipt of property. IP revenue is formed by the following items:

1. Payment for the performance of work or the provision of a service.
2. Profit received from trade.
3. Sale of assets, securities or property of an individual entrepreneur, confirmed by documents on property rights.
4. Extraordinary profit.

Personal income is the basis for calculating taxes from an entrepreneur. The procedure for determining it depends on the chosen tax regime.

Table: the amount of tax payments depending on the tax regime

The applicable tax regime determines the maximum possible income and options for confirming it. For example, for the main (OSNO) and simplified regimes (STS), as well as for the agricultural tax payment regime (UAT), cash receipts are actual and without restrictions on the maximum value. For the patent regime (PSN), the possible income is set, and for the imputed income regime (UTII), its maximum value is determined.

Often, different regimes are used for different lines of business, for example, along with the OSNO they use UTII and PSN, then the amount of imputed and possible income is added to the total income.

The amount of net income remaining at the disposal of the entrepreneur depends on the chosen tax payment system.

Is it possible to consider the contribution of personal funds of an individual entrepreneur as income?

Income is what a businessman receives from his activities, an economic benefit that is expressed in cash or in kind. Depositing personal funds is not considered income, so this operation is not taxed.

Maximum IP income

USN, ESHN, PSN, UTII can be applied subject to clear conditions: the number of employees in the company, the maximum amount of income received, a certain list of activities.

The patent regime has an upper limit on business income. Receipt of income in the amount of more than 1 million rubles (the law of the subject may establish a different limit on the amount of income - up to 10 million rubles) deprives the individual entrepreneur of the right to apply the patent regime for paying taxes. Then the entrepreneur can switch to a simplified or basic mode.

The possibility of choice has appeared since 2017, before that, the excess automatically meant the transition to OSNO.

The income limit for the simplified regime is set at 112.5 million rubles based on the results of nine months of the year in which the organization submits a notice of transition (346.12 of the Tax Code of the Russian Federation).

The preservation of a convenient special taxation regime in a diversified company will be facilitated by separate accounting for income and expenses for each direction. Thanks to him, income in the areas of business will remain within the specified limits.

Also, contributions to the Pension Fund of the Russian Federation, as well as to the Social Insurance Fund, are associated with the maximum income of individual entrepreneurs. For those whose income does not exceed 300 thousand rubles a year, the total amount of payments (for 2018) is 32,385 rubles:

• Pension insurance - 26,545 rubles.
• Medical insurance 5 840 rubles.

If you managed to earn more than 300 thousand rubles, then in addition to 32,385 rubles you will pay 1% of income in excess of the established amount.

Note that the amount of insurance premiums will grow from year to year. So, in 2019, entrepreneurs will have to pay 36,238 rubles. (29 354 + 6 884), and in 2020 - 40 874 (32 448 + 8 426). These figures are directly spelled out in Art. 430 of the Tax Code of the Russian Federation.

Income received and expenses incurred are reflected in the Book of Accounting for Income and Expenses of IP

Documents confirming the income of IP

Quite often, entrepreneurs have to confirm their income. Reporting to the state, in the declaration for the tax period, the businessman shows his income. A tax return with a visa of regulatory authorities is an official confirmation of the income of individual entrepreneurs applying OSNO, STS, ESHN.

An entrepreneur paying taxes in the UTII or PSN regime takes the imputed or possible income, respectively, as the basis for calculating taxes. In reality, revenue is different from income, on which tax deductions are calculated. Therefore, some businessmen do not understand what income, and most importantly, how to confirm IP on UTII or PSN.

As documentary evidence of receipts, entrepreneurs on PSN can present:

• a patent, confirming a receivable income;
• an income ledger that records the income that is actually earned.

An individual entrepreneur applying UTND enters into the declaration the income calculated for the type of activity. Thus, it does not reflect the actual income of a self-employed citizen. And it is not necessary to keep a book of accounting for financial transactions for this mode. This means that supporting documents for businessmen applying the single imputed tax regime are primary documents or the Book of Accounting for Financial Transactions.

But often an entrepreneur needs a certificate of income, because it is very convenient to present one paper to different companies. However, the question arises, how should a businessman compose it and who should validate it? The form and procedure for issuing such a certificate has not yet been determined by regulatory documents. But you can resolve the issue by filling out such a paper and signing it with your own hand. Try to get a similar certificate from the tax office that accepts IP reports.

To get a certified income statement, an individual entrepreneur on UTII or PSN will have to be smart

IP costs that can be attributed to expenses

All costs incurred for the implementation of business processes, documented (agreement, invoice, acceptance certificate, payroll), are called expenses. Costs are classified into groups:

• material costs;
• everything related to wages;
• deductions for depreciation;
• other costs.

The first group includes:

• the cost of raw materials and materials used in the manufacture of products;
• costs for non-depreciable property - tools, fixtures and inventory;
• spending on components and semi-finished products;
• payment for fuel, water and energy;
• payment for the work and services of third parties related to the business.

The cost of materials, non-depreciable property, semi-finished products, fuel of all kinds, services of third parties are included in the expense group "Material expenses"

The second group usually consists of:

• staff salaries, including compensation and incentive payments;
• remuneration paid under contracts, as well as copyright.

The salary of the entrepreneur is not included in the costs.

Wages of hired personnel, as well as remuneration under concluded contracts and payment for copyrights are included in the “Payment” group of expenses

The third group includes:

• deductions for own property;
• deductions for the results of intellectual activity used in business and other objects of copyright acquired for a fee.

For the purposes of tax accounting, the cost of equipment must be at least 100 thousand rubles. and have a service life of more than one year.

Deductions for own property, as well as deductions for the results of intellectual property used in business, are included in the “Depreciation deductions” expense group

The last group includes costs associated with:

• product advertising;
• obtaining certificates;
• business trips;
• warranty and post-warranty service;
• expenses for fire safety and necessary working conditions;
• lease payments;
• purchase of special literature and information bases.

The “Other” group includes expenses for fire safety, for ensuring the required working conditions, for advertising, obtaining permits, travel expenses, lease payments

Keeping records of income and expenses

The book of accounting for financial transactions of a merchant is used to record the ongoing processes, accounting for incoming funds and cash payments. Entries in the book are made on the basis of "primary". The amount of incoming and outgoing amounts is fixed in rubles (in ruble equivalent by recalculation on the date of actual receipt of income). Information about the conducted business transactions is drawn up in Russian. If there are primary documents in a foreign language, they are translated into Russian. When a businessman is engaged in several activities, a separate ledger is kept for each of them.

Most often, income and expenses are recorded on a cash basis, that is, on the date the money is received. There are features of cost accounting, for example, the cost of materials (cost and acquisition costs) are reflected in the period when income from the sale of manufactured products was received. The same applies to the costs of a firm whose activity depends on the season, and income and expenses relate to different tax periods.

To pay an imputed tax and a patent, you do not need to know the actual income, so the businessman himself develops the form of documents for internal accounting. The status of documents is assigned on the basis of the order of the individual entrepreneur.

Such a book of accounting for business transactions, as a rule, reflects:

• Title of the document;
• place and date of its compilation (beginning of maintenance);
• data of the compiler (full name of the entrepreneur, his TIN and registration number);
• the period for which the document was drawn up;
• IP signature.

Records of business transactions and documents are kept in chronological order. They should include the following information:

• date and serial number of the record;
• name of the business transaction;
• name, number and date of the transaction document;
• monetary measure of income or expense.

Income and cost accounting programs

Documenting the current operations of a businessman, or rather, the business processes carried out by him, allows accounting. Although no one forced merchants to organize accounting, the effect obtained from such events speaks for itself. Graphic and numerical illustration of the most important parameters of activity, the possibility of planning financial results, control of labor resources and material assets - this is just a small list of functionality. Establishing automated accounting for receipts and expenditures is also useful for small businesses.

The program of automated accounting of income and expenses saves the entrepreneur from routine accounting work

The most famous paid program is "1C: Enterprise Accounting", it has many configurations for various forms of IP. The shareware program "Sibus" is also popular, suitable for individual entrepreneurs on the simplified tax system. The free programs "BukhSoft: Simplified System", "Business Pack", "IP USN" usually use IP on the USN.

At any enterprise, management, tax and accounting records should be kept, all of them are inextricably linked. The use of automated accounting systems allows you to control key business indicators, including with graphical support of information, as well as promptly prepare the necessary reporting documentation.