1. First, make up the company's losses in previous years;
2. Secondly, withdraw the statutory surplus reserve fund. According to the provisions of the Company Law, the withdrawal ratio shall not be less than 65,438+00% of the profits realized in that year;
3. After withdrawing the statutory surplus reserve fund, you can withdraw any surplus reserve fund;
4. Finally, distribute the surplus profits.
Financial management of the company:
1. Company's revenue management: it involves the confirmation, measurement and reporting of revenue to ensure the authenticity and legality of revenue;
2. Cost control: including the management of direct costs and indirect costs, aiming at improving the cost-effectiveness of the company;
3. Asset management: it involves the management of fixed assets, current assets and intangible assets to ensure the effective utilization and preservation and appreciation of assets;
4. Debt management: including the management of short-term liabilities and long-term liabilities, controlling financial risks and maintaining financial stability;
5. Cash flow management: ensure that the company has enough cash flow for daily operations and investment activities;
6. Budget management: including budget preparation, execution and monitoring, is an important tool for the company's financial management;
7. Financial analysis: through the analysis of financial statements, evaluate the company's financial status and operating results;
8. Tax planning: make rational use of tax policies, reduce the tax burden and improve the after-tax profit of the company;
9. Internal control: establish and improve the internal control system to prevent financial risks and improve the reliability of financial information;
10. Investment decision: It involves capital budget, investment project evaluation and risk management to ensure the rationality and profitability of investment.
To sum up, the company's income distribution is first used to make up for past losses, and then the statutory surplus reserve fund which is not less than 65,438+00% of the current year's profit is extracted according to law, and then any surplus reserve fund is extracted, and finally the remaining profits are distributed, thus ensuring the company's financial stability and protecting the rights and interests of stakeholders.
Legal basis:
Company Law of the People's Republic of China
Article 166
When the company distributes the after-tax profit of the current year, it shall withdraw 10% of the profit and include it in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn.
If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.
After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting. After-tax profits of the company after making up losses and drawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 35 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held.
If the shareholders' meeting, shareholders' general meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company. The company's shares held by the company shall not be distributed.