When drawing up plans for the financial activities of an organization, special attention is paid to the balance of its own circulating and borrowed funds (mandatory payments in the planning period). Working capital in the organization is the authorized capital and profit of the enterprise from the main activity. Borrowed funds are current assets received on the balance sheet of the enterprise (bank loans, accounts payable, etc.).
Sources of income of the enterprise
Depending on the economic activity of the enterprise, the sources of income are divided into several types:
- profit received from the sale of manufactured products;
- profit from the sale of own fixed assets;
- profit received from foreign exchange transactions;
- funds received from lending to projects of third-party enterprises;
- depreciation deductions.
When planning financial costs for capital investments (enterprise development), the planned total receipts in a certain period of its own working capital are taken into account, minus the mandatory payments:
- deductions for wages
- income tax;
- payment for consumed energy resources;
- payment for the purchased materials for the main production;
- payments for the lease of property;
- payments on shares and bank loans.
The main source of financing for investments in the enterprise is the development fund, whose activities are aimed at technical re-equipment of production (the acquisition of modern equipment, new technologies) and the capital construction fund.
Also, attracted funds can be used for the development of the enterprise.
Sources of borrowed funds
When using borrowed funds, the amount of necessary funds is calculated, their economic feasibility, because the repayment of loans significantly increases the financial obligations of the enterprise. Loans are repaid after the completion of the project at the expense of the organization's development fund. If funds on the accounts of funds are insufficient, other funds are used, as well as retained earnings of the organization.
Borrowed funds are cash receipts in the form of financial (material) assistance from other enterprises, banks (long-term and short-term loans), individuals (loans), as well as the issue of additional shares (bonds).
Borrowed funds can also include funds that are at the disposal of the enterprise in the short term (rolling current wage arrears, social security contributions, reserve arrears on payments, advance payments of customers).
As a result, the financial plan of the enterprise reflects the relationship between income and expenses, as well as the entire range of relationships between the organization and the state budget (mandatory payments for social insurance, taxes to the country's treasury and the local budget), financial and cooperative relations with the credit and financial system and other organizations and businesses.
