Methodology for analyzing the income and expenses of individual entrepreneurs and optimizing their reserves
Abstract. The article is devoted to the methodology development for analyzing the income and expenses of individual entrepreneurs and optimizingtheir reserves usingthe example of plumbing retailing. The purpose of the study is to find ways to maximize income and reserves to reduce costs. The paper presents a detailed analysis of the activities of sole proprietors for 2022-2024, identifies key factors of revenue growth and decline, and suggests measures to optimize income and cost reduction reserves. The main focus is on three areas: reducing material costs, adjusting pricing policies (including dynamic phcing) and expanding the customer base through marketing tools and participation in tenders. The practical significance of the study lies in the fact that the proposed methods allow sole proprietors to increase sales profits by 15-30 million rubles per year without significantly increasing costs. The results can be applied not only in retail, but also in other areas.
Keywords: individual entrepreneur (IE), income assessment, sales profitability, expense optimization, profit growth reserves, marketing strategies, financial analysis.
Highlights:
- a specialized methodology has been developed for analyzing income and expenses of sole proprietors in retail trade, including identifying reserves for profit growth, cost reduction, and recommendations for optimizing activities;
- the methods of A.D. Sheremetand R.S. Sayfulin have been adapted for sole proprietors on the general taxation system (GTS), which is rare in research (usually LLC or sole proprietor are analyzed on the DSN);
- practical application of the methodology usingthe example of sole proprietors in the retail plumbing industry, includes an analysis of revenue dynamics, profitability assessment, and cost structure research;
- offering revenue growth reserves, such as 2% reduction in purchase prices, dynamic pricing, assortment segmentation and margin increases, expansion of the customer base through contextual advertising and participation in tenders;
- the analysis for the income and expenses of an individual entrepreneur on the general tax system with a focus on retail trade was conducted, and practical solutions for increasing profitability were proposed.
Olesya A. SinichenkŠ¾, Yuri A. Kudryashov - Taganrog Institute of Management and Economics, Taganrog, Russia