In each country there is a certain system for the formation and use of funds, expressed in various types of finance. The decisive position in it is occupied by the financial resources of enterprises, which have a significant impact on state economic policy.
The concept and basis of financial resources
The financial resources of the enterprise represent the funds at its disposal, which are intended for the implementation of production costs, the fulfillment of financial obligations and economic incentives for employees. This is a certain set of funds that allow you to perform a wide range of tasks, including the accumulation, consumption and formation of reserve funds. Management of financial resources of an enterprise is most often performed by a financial manager, who is obliged to develop an effective plan for achieving the strategic and tactical goals of the organization.
The list of tasks for the implementation of the finances of a particular organization is based on a specific financial mechanism, which consists of several closely related elements. These include financial methods and levers, information, regulatory and legal support. So financial methods are ways of regulating the economic process by building effective financial relations, and financial levers act as techniques for implementing the appropriate methods.
The legal support of the financial mechanism includes legislative regulations, orders, acts and other legal documentation at the state level. The normative is based on a variety of internal documents - instructions, guidelines, tariff rates, etc. As for the information support of the financial mechanism, these are sources of economic, commercial, financial and other data. This area covers information about the solvency and financial stability of the enterprise and its partners, current prices and rates in various markets, etc.
Functions and sources of financial resources
The content of the finances of a particular organization is disclosed in the functions they perform, which include:
- distribution;
- control;
- serving.
The distribution function of organizational finance is understood as its participation in the distribution of income received in the process of activity. This is the formation and use of cash income and funds of the enterprise, the fulfillment of monetary obligations to personnel, counterparties and creditors.
The control function is to monitor the financial condition of the company and analyze the effectiveness of its activities. There are two ways to implement the control function: through financial characteristics from statistical, accounting and operational reporting, as well as through financial impact carried out through economic incentives and levers (taxes, subsidies, benefits, etc.).
The service function is aimed at disclosing the content of the company's finances. It is also called reproduction, since the movement of income is associated with the renewal of used resources. In the process of economic activity of any company, a continuous flow of income must be ensured, and the final income of the organization and its security depend on how competently the flows of material and monetary resources are formed.
There are the following main sources of financial resources:
- profit;
- depreciation;
- share contributions;
- loans;
- proceeds from the sale of retired property.
The final list of sources of finance for a particular enterprise depends on its field of activity. Often, domestic funds are formed due to the growth of stable liabilities and targeted income from investors. Also, enterprises can form a material stock through various sectors of market relations, receiving it from the sale of shares and bonds, interest on loans provided, payment of insurance premiums and various other financial transactions.
