Financial activity is an integral part of the organization's management. Its efficiency, complexity and overall quality have a direct impact on the economic life of the enterprise and its net income.
The financial activity of an organization is a set of methods, tools and strategies aimed at financial support of business processes in order to achieve certain results. Thus, the relevant activity of the enterprise provides for the comprehensive management of internal cash flows, ensures the construction and protection of financial reserves.
Financial management activities are carried out by the economic or financial department of the organization. In small enterprises, the accounting department may be responsible for this, as well as persons holding special management positions (commercial director, financial controller, and others).
Main goals:
- timely supply of finance to economic and other branches of the organization;
- attracting financial flows and expanding the capital of the organization;
- timely repayment of debts, work with loans;
- direction of financial flows for the implementation of certain goals;
- analysis of the feasibility of financial costs and the prevention of unnecessary costs.
The construction of the organization's financial activities must necessarily include the following activities:
- creation of authorized capital and its distribution at the enterprise;
- pooling of funds for the implementation of certain goals;
- directing the flow of funds from the main activities of the company to cover production needs;
- fulfillment of financial deductions in accordance with the legislation (salaries of employees, social and tax deductions);
- management of financial resources received as profit from current activities.
There are three main areas of organizational financial activity:
- Financial forecasting and planning.
- Control over production and economic activities.
- Operational financial and economic activities.
Financial planning and forecasting consists in building a clear plan for the financial and economic activities of the enterprise. This work is carried out in two stages. First, experts predict the expected profit from the main activity of the enterprise, taking into account possible risks, difficulties, seasonal components and other factors that depend on the specific sphere of work. As a result, a picture of the expected financial and economic activity of the company is drawn up, close to reality. Further, on the basis of the data obtained, a plan is built directly taking into account market circumstances, the economic environment, taxation, demand, etc.
The process of monitoring and analyzing production and economic activities includes special measures through which analysts, as well as the company's management, seek to eliminate various economic risks that negatively affect the expected results. This includes responding to various economic circumstances, effectively attracting available funds, reducing financial turnover when certain difficulties arise. At the same time, there is no universal set of techniques: each company develops its own methods after studying individual performance indicators for a certain period.
Operational or current financial and economic activities of the enterprise are carried out to ensure its stable solvency, rational distribution of available resources to continue production. This direction provides for the search and application of various techniques for the rapid elimination of various obstacles in the process of economic activity, as well as for ensuring constant income with a focus on its growth.
