The economic essence of the financial work of the organization. Functions of the finance of the enterprise Basic principles of organizing the financial activities of the enterprise

Internal sources

Additional contributions to the authorized capital

Profit remaining at the disposal of the firm

Depreciation deductions

Additional issue and sale of shares

Getting free financial assistance

Other external sources of formation of own financial resources

As part of internal sources, the main place belongs to the profit remaining at the disposal of the enterprise, which is distributed by decision of the governing bodies for the purpose of accumulation and consumption.

Profit- this is the monetary expression of savings created by enterprises of any form of ownership. As an economic category, it characterizes the financial result of the enterprise. The profit allocated for accumulation is further used for the development of production; profit directed to consumption is used to solve social problems.

Profit has two functions:

firstly, the main source of financial resources for expanding reproduction;

secondly, the source of state budget revenues.

The economic interests of the state, business entities and each employee are concentrated in profit. Profit characterizes all aspects of the financial and economic activities of enterprises, so the growth of profits of economic entities indicates an increase in financial reserves and strengthening the financial system of the state.

The end result of the production and financial and economic activities of economic organizations is the receipt of balance sheet profit, which includes profit from the production and sale of the main products (works, services), from the sale of other products, as well as the balance (balance) of profits and losses from non-sales operations (fines, penalties, forfeits, etc.).

An important role in the composition of internal sources is also played by depreciation deductions, which are a monetary expression of the cost of depreciation of fixed assets and intangible assets and are an internal source of financing for both simple and expanded reproduction.

In the composition of external (attracted) sources of formation of own financial resources, the main role belongs to additional emission valuable papers, through which there is an increase in the share capital of the company, as well as attracting additional share capital, through additional contributions to the authorized capital.

For some enterprises, an additional source of formation of their own financial resources is the gratuitous financial assistance provided to them. In particular, these can be budget allocations on a non-refundable basis, as a rule, they are allocated to finance government orders, certain socially significant investment programs or as state support for enterprises whose production is of national importance.

Other external sources include tangible and intangible assets transferred to enterprises free of charge and included in their balance sheet.

In a market economy, the production and economic activity of an enterprise is impossible without the use of borrowed funds, which include:

bank loans;

borrowed funds of other enterprises and organizations;

funds from the issue and sale of bonds of the enterprise;

funds from extrabudgetary funds;

budget allocations on a returnable basis, etc.

Attracting borrowed funds allows the company to accelerate the turnover of working capital, increase the volume of business operations performed, and reduce work in progress. However, the use of this source leads to certain problems associated with the need for subsequent servicing of debt obligations assumed. As long as the amount of additional income secured by attracting borrowed resources covers the cost of servicing the loan, the financial position of the enterprise remains stable.

If these indicators are equal, the question arises of the advisability of attracting borrowed sources of financial resources formation, as they do not provide additional income. In a situation where the cost of servicing accounts payable exceeds the amount of additional income from its use, the deterioration of the financial situation is inevitable in the form of:

Reducing profits due to the need to direct a significant part of the proceeds from the main activity for settlements on previously received loans (the company actually begins to work not for itself, but for its creditors); further increase in debt due to the need to attract new loans to service those received earlier;

Loss of financial independence of the enterprise due to the impossibility of timely settlement of its obligations;

Financial resources are used by enterprises in the process of production, investment and financial activities. They are constantly in motion and in monetary form remain only in the form of cash balances on settlement accounts in banks and in the cash desk of the enterprise.

Structure and sources of financial resources of the enterprise

Financial sources of the enterprise

Involved funds

Enterprise income

Profit from operating activities

Authorized fund

Budget subsidies

sinking fund

Loans from banks and organizations

Profit from financial operations

Insurance claims

Reserve and other funds

Revenue from other activities

Production Development Fund

Cash and cash funds of the enterprise

The following concepts are often mistakenly perceived as single: cash, financial resources and cash funds.

Cash- this is a broader concept than financial resources, which make up only a part of the funds in the turnover of the enterprise. Financial resources are the monetary expression of newly created value.

The difference between cash and financial resources is clearly seen in the example of the company's revenue from the sale of products. The total amount of revenue is the amount of money received in the bank account of the enterprise. Of this amount of cash, a significant part is made up of working capital advanced in the production process to pay for raw materials, materials, fuel, electricity, and only the residual part, which is net proceeds in the form of gross income, is a source of financial resources.

cash funds- this is only a part of financial resources, the most stable and formed in the form of funds for targeted use.

An important aspect of the financial activity of an enterprise is the formation and use of various monetary funds in the process of carrying out production and economic activities. With their help, economic activities are provided with the necessary funds, as well as expanded reproduction; financing of scientific and technological progress; development and implementation of new technology; economic incentives; settlements with the budget, banks.

The funds generated by enterprises can be divided into four groups:

1. own funds;

2. funds of attracted funds;

3. loan funds;

4. operating cash funds.

Equity funds include: authorized capital, additional capital, reserve capital, investment fund, currency fund, etc. The investment fund is a source of increase authorized capital firms, since investments in the development of production increase the property of the firm. The currency fund is formed at enterprises that receive foreign exchange earnings from export operations and buy foreign currency for import operations.

Funds of borrowed funds include: consumption fund, dividend payments, deferred income, reserves for future expenses and payments. These are miscellaneous funds. They are of a dual nature. On the one hand, these funds are in the turnover of the enterprise, and on the other hand, they belong to its employees (dividends and consumption fund).

The consumption fund is a fund of money formed by net profit firms. It is intended mainly to meet the material needs of the enterprise's employees, to pay dividends (in joint-stock companies), to pay fines in some cases, penalties for violations due to the fault of the enterprise.

Debt funds are bank loans, commercial loans, factoring, leasing and other borrowed funds. In a market economy, no enterprise can do without borrowed funds. The variety of funds makes it possible to use them in various situations.

Operational cash funds of the enterprise, which form the fourth group of cash funds, are created periodically. This group includes the following funds: for the payment wages, for the payment of dividends, for payments to the budget, and so on. Twice or once a month a fund is formed to pay wages. Usually once a year (less often than once a quarter) a fund must be formed to pay dividends to shareholders on shares. Periodically, the enterprise organizes a fund for payments to the budget of various deductions.

In addition to those indicated at the enterprise, other funds of funds can be created: for repaying bank loans, mastering new equipment, research work, deductions from a higher organization.

Financial work in an enterprise is a specific activity aimed at timely and full provision enterprises with financial resources to meet its reproductive needs, active investment activity and fulfillment of all its financial obligations to the budget, tax service, banks, other enterprises and own employees.

Financial relations represent the construction of rational schemes of relations between an enterprise and business partners and with all financial institutions of the state.

Common to all financial relations is that they are expressed in monetary terms and represent a set of payments and receipts of funds, as well as the fact that they arise as a result of certain business transactions initiated by the enterprise itself. Therefore, the correct, rational organization of the finances of an enterprise is the main factor in its successful production and economic activity.

The subject of financial work at the enterprise are:

a) financial relations, namely, the construction of rational schemes for the enterprise's relations with business partners and with all financial institutions of the state, as a prerequisite for the formation of its primary income;

b) financial flows, namely, ensuring their sufficiency, timeliness and synchronization, as mandatory prerequisites for the financial balance of the enterprise, its financial well-being.

Possible areas of influence on financial relations and financial flows are usually represented by three enlarged groups:

1) financial planning;

2) operational and managerial work;

3) control and analytical work.

Financial planning is the process of substantiating the need of an enterprise for financial resources and balancing it with possible sources of coverage.

main goal financial planning in practice is a timely and complete financial support implementation of the production and economic programs planned by the enterprise, as well as maximization of the volumes of profits.

Operational and managerial work in the field of finance of an enterprise involves constant monitoring of the quantitative and qualitative characteristics of its financial relations and financial flows. The main goal of operational and managerial work is a constant positive impact on the performance of any financial transaction and business transaction committed by the enterprise and maintaining its business reputation at the proper level.

The achievement of this goal contributes to the solution of the following tasks:

Ensuring timely payments of the enterprise to the budget, budgetary and extra-budgetary funds of the state, timeliness of its settlements with suppliers of raw materials, fuel, energy, which are the first signs of its solvency;

The study of market conditions, supply and demand curves as an objective basis for making informed marketing and pricing decisions;

Ensuring the acceleration of the turnover of working capital as the most important way to reduce the current financial needs of the enterprise;

Creation and maintenance of optimal volumes of production stocks of the enterprise, guaranteeing the continuity of the production process;

Management of receivables and payables of the enterprise as a prerequisite for compliance with payment discipline;

Preparation of information on the receipt of funds, their expenditure and certificates on the progress of the implementation of indicators financial plan, about the financial condition of the enterprise as an objective information base for the preparation of management decisions.

Each of these tasks are elements of financial tactics.

Control and analytical work aims at an objective assessment economic efficiency, profitability and expediency of each transaction and business operation of the enterprise. All their technology is subject to control and analysis: from checking the legality, compliance with current financial regulations to clarifying their impact on the image and business reputation enterprises.

Control and analytical work is designed to track the performance of indicators of financial, cash, credit plans, as well as profit plans and give an objective assessment of these processes as a starting point for improving the activities of the enterprise in the future.

At present, in the context of the development of market relations, regardless of the choice of scheme for building financial service enterprises, the organization of financial work in any industry and at enterprises of different organizational and legal status should be based on the following principles: economic independence, self-financing, liability, interest in the results of activities, the formation of financial reserves.

The principle of economic independence assumes that the enterprise independently, regardless of the organizational and legal form of management, determines its economic activity, the direction of investment of funds in order to make a profit. V market economy significantly expanded the rights of enterprises, commercial activities investments, both short-term and long-term. The market stimulates enterprises to search for more and more new areas of capital investment, the creation of flexible industries that meet consumer demand. However, one cannot speak of complete economic independence. The state determines certain aspects of the activities of enterprises, such as depreciation policy. So, the relationship of enterprises with budgets of different levels, extra-budgetary funds is also regulated by law.

The principle of self-financing means full payback of costs for the production and sale of products, investment in the development of production at the expense of own funds and, if necessary, bank and commercial loans. The implementation of this principle is one of the main conditions for entrepreneurial activity, which ensures the competitiveness of the enterprise. The main own sources of financing for enterprises in the Republic of Belarus include: depreciation, profit, deductions to the repair fund.

But the total amount of funds of enterprises is insufficient for the implementation of serious investment programs. Currently, not all enterprises and organizations are able to fully implement this principle. Enterprises and organizations in a number of sectors of the national economy, producing products and providing services necessary for the consumer, for objective reasons, cannot ensure their sufficient profitability. These include individual enterprises of urban passenger transport, housing and communal services, Agriculture, defense industry, extractive industries. Such enterprises receive allocations from the budget on different terms.

The principle of liability means the existence of a certain system of responsibility for the conduct and results of economic activity. financial methods implementation of this principle is different for individual enterprises, their managers and employees of the enterprise. In accordance with Belarusian legislation, enterprises that violate contractual obligations (terms, product quality), settlement discipline, allow untimely repayment of short-term and long-term loans, redemption of bills, violation of tax legislation pay penalties, penalties, fines. In case of inefficient activity, the bankruptcy procedure may be applied to the enterprise. For the heads of the enterprise, the principle of liability is implemented through a system of fines in cases of violation of tax laws by the enterprise. A system of fines is applied to individual employees of the enterprise, deprivation of bonuses, dismissal from work in cases of violation labor discipline, admitted marriage.

The objective necessity of the principle of interest in the results of activities is determined by the main goal of entrepreneurial activity - making a profit. The interest in the results of economic activity is equally inherent in the employees of the enterprise, the enterprise itself and the state as a whole. At the level of individual workers, the implementation of this principle should be ensured by decent wages at the expense of the wage fund and profits directed to consumption. For an enterprise, this principle can be implemented as a result of the implementation by the state of an optimal tax policy and the observance of economically justified proportions in the distribution of net profit to the consumption fund and the accumulation fund. The interests of the state are ensured by the profitable activities of enterprises.

The principle of providing financial reserves is associated with the need to form financial reserves to ensure entrepreneurial activity, which is associated with risk due to possible fluctuations in market conditions. In a market economy, the consequences of the risk fall directly on the entrepreneur, who independently makes decisions, implements the developed programs with the risk of non-return of invested funds. The financial investments of an enterprise are also associated with the risk of receiving an insufficient percentage of income compared to inflation rates or more profitable areas of capital investment. Finally, there may be direct miscalculations in development production program.

Financial reserves can be formed by enterprises of all organizational and legal forms of ownership from net profit, after paying taxes and other obligatory payments to the budget.

At the same time, it is advisable to keep the funds allocated to the financial reserve in liquid form so that they generate income and, if necessary, can be easily converted into cash capital.

Financial work at an enterprise is a specific activity aimed at timely and complete provision of an enterprise with financial resources to meet its reproductive needs, active investment activities and fulfill all its financial obligations to the budget, tax service, banks, other enterprises and its own employees.

Financial relations represent the construction of rational schemes of relations between an enterprise and business partners and with all financial institutions of the state.

Common to all financial relations is that they are expressed in monetary terms and represent a set of payments and receipts of funds, as well as the fact that they arise as a result of certain business transactions initiated by the enterprise itself. Therefore, the correct, rational organization of the finances of an enterprise is the main factor in its successful production and economic activity.

Schematically, the financial relations of the enterprise are presented in Figure 1.1.

Rice. 1.1. Financial relations of the enterprise

The subject of financial work at the enterprise are:

a) financial relations, namely, the construction of rational schemes for the enterprise's relations with business partners and with all financial institutions of the state, as a prerequisite for the formation of its primary income;

b) financial flows, namely, ensuring their sufficiency, timeliness and synchronization, as mandatory prerequisites for the financial balance of the enterprise, its financial well-being.

Possible areas of influence on financial relations and financial flows are usually represented by three enlarged groups:

1) financial planning;

2) operational and managerial work;

3) control and analytical work.

The relationship of the three named areas of financial work in the enterprise and their general focus on financial relations and financial flows is illustrated in Figure 1.2. .

Rice. 1.2. Directions and subject of financial work at the enterprise

Note. Source: own development based on

Financial planning is the process of substantiating the need of an enterprise for financial resources and balancing it with possible sources of coverage.

The main goal of financial planning in practice is the timely and complete financial support for the implementation of the production and economic programs planned by the enterprise, as well as maximizing the volume of profits.

Operational and managerial work in the field of finance of an enterprise involves constant monitoring of the quantitative and qualitative characteristics of its financial relations and financial flows. The main goal of operational and managerial work is a constant positive impact on the effectiveness of any financial transaction and business transaction performed by the enterprise and maintaining its business reputation at the proper level.

The achievement of this goal contributes to the solution of the following tasks:

Ensuring timely payments of the enterprise to the budget, budgetary and extra-budgetary funds of the state, timeliness of its settlements with suppliers of raw materials, fuel, energy, which are the first signs of its solvency;

The study of market conditions, supply and demand curves as an objective basis for making informed marketing and pricing decisions;

Ensuring the acceleration of the turnover of working capital as the most important way to reduce the current financial needs of the enterprise;

Creation and maintenance of optimal volumes of production stocks of the enterprise, guaranteeing the continuity of the production process;

Management of receivables and payables of the enterprise as a prerequisite for compliance with payment discipline;

Drawing up information on the receipt of funds, their expenditure and certificates on the progress of the financial plan indicators, on the financial condition of the enterprise as an objective information base for the preparation of management decisions.

Each of these tasks are elements of financial tactics.

The control and analytical work aims at an objective assessment of the economic efficiency, profitability and expediency of each transaction and business operation of the enterprise. All their technology is subject to control and analysis: from checking the legality, compliance with current financial regulations to clarifying their impact on the image and business reputation of the enterprise.

Control and analytical work is designed to track the performance of indicators of financial, cash, credit plans, as well as profit plans and give an objective assessment of these processes as a starting point for improving the activities of the enterprise in the future.

At present, in the context of the development of market relations, regardless of the choice of the scheme for building the financial service of an enterprise, the organization of financial work in any industry and at enterprises of different organizational and legal status should be based on the following principles: economic independence, self-financing, liability, interest in the results of activities, formation of financial reserves .

The principle of economic independence assumes that the enterprise independently, regardless of the organizational and legal form of management, determines its economic activity, the direction of investment of funds in order to make a profit. In a market economy, the rights of enterprises, commercial activities, investments, both short-term and long-term, have significantly expanded. The market stimulates enterprises to search for more and more new areas of capital investment, the creation of flexible industries that meet consumer demand. However, one cannot speak of complete economic independence. The state determines certain aspects of the activities of enterprises, such as depreciation policy. So, the relationship of enterprises with budgets of different levels, extra-budgetary funds is also regulated by law.

The principle of self-financing means full payback of costs for the production and sale of products, investment in the development of production at the expense of own funds and, if necessary, bank and commercial loans. The implementation of this principle is one of the main conditions for entrepreneurial activity, which ensures the competitiveness of the enterprise. The main own sources of financing for enterprises in the Republic of Belarus include: depreciation, profit, deductions to the repair fund.

But the total amount of funds of enterprises is insufficient for the implementation of serious investment programs. Currently, not all enterprises and organizations are able to fully implement this principle. Enterprises and organizations in a number of sectors of the national economy, producing products and providing services necessary for the consumer, for objective reasons, cannot ensure their sufficient profitability. These include individual enterprises of urban passenger transport, housing and communal services, agriculture, the defense industry, and extractive industries. Such enterprises receive allocations from the budget on different terms.

The principle of liability means the existence of a certain system of responsibility for the conduct and results of economic activity. The financial methods for implementing this principle are different for individual enterprises, their managers and employees of the enterprise. In accordance with Belarusian legislation, enterprises that violate contractual obligations (terms, product quality), settlement discipline, allow untimely repayment of short-term and long-term loans, redemption of bills, violation of tax legislation pay penalties, penalties, fines. In case of inefficient activity, the bankruptcy procedure may be applied to the enterprise. For the heads of the enterprise, the principle of liability is implemented through a system of fines in cases of violation of tax laws by the enterprise. A system of fines, deprivation of bonuses, dismissal from work in cases of violation of labor discipline, marriage is applied to individual employees of the enterprise.

The objective necessity of the principle of interest in the results of activities is determined by the main goal of entrepreneurial activity - making a profit. The interest in the results of economic activity is equally inherent in the employees of the enterprise, the enterprise itself and the state as a whole. At the level of individual workers, the implementation of this principle should be ensured by decent wages at the expense of the wage fund and profits directed to consumption. For an enterprise, this principle can be implemented as a result of the implementation by the state of an optimal tax policy and the observance of economically justified proportions in the distribution of net profit to the consumption fund and the accumulation fund. The interests of the state are ensured by the profitable activity of enterprises.

The principle of providing financial reserves is associated with the need to form financial reserves to ensure entrepreneurial activity, which is associated with risk due to possible fluctuations in market conditions. In a market economy, the consequences of the risk fall directly on the entrepreneur, who independently makes decisions, implements the developed programs with the risk of non-return of invested funds. The financial investments of an enterprise are also associated with the risk of receiving an insufficient percentage of income compared to inflation rates or more profitable areas of capital investment. Finally, there may be direct miscalculations in the development of the production program.

Financial reserves can be formed by enterprises of all organizational and legal forms of ownership from net profit, after paying taxes and other obligatory payments to the budget.

At the same time, it is advisable to keep the funds allocated to the financial reserve in liquid form so that they generate income and, if necessary, can be easily converted into cash capital.

The financial relations of commercial organizations are built on certain principles related to the basics of economic activity. In modern educational literature until a clear understanding of modern principles organization finance organizations. So, Pavlova L.N. refers to the principles of financial implementation: planning and consistency, target orientation, diversification, strategic orientation / 52, p. 38 /. Romanovsky M.V. believes that the principles modern organization finance of enterprises are: planning, financial ratio of terms, interdependence of financial indicators, flexibility, minimization of financial costs, rationality, financial stability/ 78, pp. 430-431 /.

In our opinion, the principles listed above are of a particular nature and are more applicable when developing a specific financial strategy and evaluating the results of financial activities and financial condition organizations. Therefore, we share the point of view of Drobozina L.N. and we believe that the main principles of the organization of finance are: economic independence, self-financing, material interest, liability, provision of financial reserves / 76, p. 81-84 /.

The principle of economic independence cannot be realized without financial independence. Organizations, regardless of the legal form, independently determine the scope of economic activity, sources of financing, directions for investing funds in order to make a profit. The market stimulates commercial organizations and to the search for new areas of capital investment, the creation of flexible industries that meet consumer demand.

In order to obtain additional profit, organizations can make financial investments of a short-term and long-term nature in the form of acquiring securities of other enterprises, the state, participating in the formation of the authorized capital of other economic entities. However, the state regulates certain aspects of their activities (regulation of the relationship of organizations with the budget, off-budget funds, tax regulation, the definition of depreciation policy, currency regulation, etc.).

The principle of self-financing. The implementation of this principle is one of the main conditions for entrepreneurial activity, which ensures the competitiveness of an economic entity. Self-financing means full self-sufficiency of costs for the production and sale of products, performance of work and provision of services, investment in the development of production at the expense of own funds and, if necessary, bank and commercial loans.

Share own sources in the total volume of investments of Russian enterprises is more than 70%, which corresponds to the level of developed market countries. However, the total amount of funds is quite low and does not allow the implementation of serious investment programs. Currently, not all organizations are able to implement this principle, because. for objective reasons, they cannot ensure the profitability of their products (works, services). These include enterprises of passenger transport, housing and communal services, agriculture, defense industry, extractive industries. Such enterprises, to the extent possible, receive state support in the form of additional funding from the budget on a returnable and non-refundable basis.

The principle of material interest - the objective necessity of this principle is ensured by the main goal of entrepreneurial activity - making a profit. Interest in the results of entrepreneurial activity is manifested not only by its participants, but also by the state as a whole. At the level of individual employees of the enterprise, the implementation of this principle can be ensured by a high level of remuneration. For an enterprise, this principle can be implemented as a result of the state's implementation of an optimal tax policy, an economically sound depreciation policy, the creation of economic conditions for the development of production. The enterprise itself can contribute to the implementation of this principle by observing economically justified proportions in the distribution of newly created value. The interests of the state can be observed by the profitable activities of enterprises, the growth of production and the observance of tax discipline. Currently, due to the reform tax system there are prerequisites for the implementation of this principle.

The principle of liability means the existence of a certain system of responsibility for the conduct and results of financial and economic activities. Financial methods for implementing this principle are different and are regulated Russian legislation. Enterprises that violate contractual obligations, settlement discipline, terms of repayment of loans received, tax laws, etc., pay penalties, fines, forfeits. Bankruptcy proceedings may be applied to unprofitable enterprises that are unable to meet their obligations.

Heads of enterprises for violation of tax laws bear administrative responsibility, a system of fines is applied to individual employees of enterprises and organizations in cases of marriage, deprivation of bonuses, dismissal from work in cases of violation of labor discipline.

This principle is currently implemented most fully.

The principle of providing financial reserves is dictated by the conditions of entrepreneurial activity, which is associated with certain risks of non-return of funds invested in business. In the conditions of market relations, entrepreneurs are forced to sell their products with the risk of not receiving money on time. Financial investments of enterprises are also associated with the risk of non-return of invested funds, or income below the expected one. Finally, there may be direct economic miscalculations in the development of the production program. The implementation of this principle is the formation of financial reserves and other similar funds that can strengthen the financial position of the enterprise at critical moments of management.

Financial reserves can be formed by enterprises of all organizational and legal forms of ownership from net profit, after paying tax and other obligatory payments to the budget from it. Joint stock companies are required to form a financial reserve in accordance with the legally established procedure. In practice, due to low financial opportunities, not all enterprises form financial reserves required for their financial sustainability.

All the principles of organizing the finances of enterprises are in constant development and for their implementation in each specific economic situation, their own forms and methods are used, corresponding to the state of the productive forces and production relations in society.

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Academy of Labor and Social Relations

Department of Finance and Credit

Course work

"The Essence and Principles of Organization of Finance of Enterprises"

Performed: 2nd year student

Faculty of Finance

evening education

Platonova N.A.

Checked: assistant professor Panov G.A.

Finance is economic category existing in various socio-economic formations. The essence of finance, their role in social reproduction is determined by the economic structure of society, the nature and functions of the state.

Enterprise finance is the basis unified system state finances. This is determined by the fact that they directly serve the process of creating and distributing the total social product and national income. It is in this area of ​​finance that the bulk of income is formed, which are subsequently redistributed through various channels in the national economic complex and serve as the main source of income. economic growth and social development of society. From the state of the finances of enterprises various forms property depends on the provision of centralized monetary funds with financial resources.

All changes in the finances of enterprises are associated with changes in the financial system of the state. Enterprise finance plays an important role not only in the financial system, but in general in ensuring its effective economic and social development.

This role is manifested in the fact that the financial resources concentrated by the state and used by it to finance various social needs are mainly formed from the finances of enterprises.

Enterprise finance can serve as the main tool state regulation economy. With their help, the regulation of the reproduction of the produced product is carried out, the financing of the needs of expanded reproduction is ensured on the basis of the optimal ratio between the funds allocated for consumption and accumulation. The finances of enterprises are used to regulate sectoral proportions in a market economy, contribute to the acceleration of the development of individual sectors of the economy, the creation of new industries and modern technologies.

The role of enterprise finance is great, and ensuring the normal state of the economy and public life, since, due to their specific features, they carry out the process of distribution and redistribution of national income and national wealth at three main levels: the national level, the level of enterprises, and the level of production teams.

Direct connection of enterprise finance with all phases of production process determines their high potential activity and wide possibility of influencing all aspects of management. Therefore, enterprise finance is an important tool for economic stimulation, control over the country's economy and its management.

The existence of enterprise finance is associated with the presence of commodity-money relations. The sale of products and services is carried out by buying and selling for money at prices that reflect the value of the goods. But money itself is not finance. This is a special commodity by means of which the value of all other commodities is determined and expressed and their circulation takes place. Finance is economic relations carried out through the circulation of money, i.e. money relations.

A necessary condition for the emergence of financial relations is the movement of value in the process of creating, distributing and using the total social product, national income and national wealth.

Enterprise Finance- a relatively independent sphere of systemic finance of the state, covering the range of monetary relations associated with the formation, distribution and use of financial resources of enterprises based on the management of their cash flows.

Company is an independent business entity with the rights legal entity producing products, goods, providing services, performing works, engaged in various types economic activity, the purpose of which is to meet social needs, profit and capital growth.

The finances of enterprises are directly related to production and reflect the state of the country's economy.

The main goal of enterprise finance is to form the necessary amount of financial resources for their further use in the course of the enterprise's economic activity and to ensure the efficiency of the development of all stages of its production and commercial activities.

The financial resources concentrated by the state and used by it to finance various social needs are formed mainly from the finances of enterprises

The finances of enterprises form the financial basis for ensuring the continuity of the production process aimed at meeting the demand for goods and services

· The tasks of the social development of society are being implemented through the formation of resources for the needs of consumption

The regulation of the reproduction of the produced product is carried out, the financing of the needs of expanded reproduction is provided on the basis of the optimal ratio between the funds allocated for consumption and accumulation

The finances of organizations are used to regulate sectoral proportions in a market economy

The finances of organizations make it possible to use the money savings of households by providing them with the opportunity to invest in profitable financial instruments emitted by some of them.

· Servicing the individual circulation of funds, ie. changing forms of value. In the process of such a circulation, the monetary form of value turns into a commodity form, after the completion of the production process and the sale of the finished product, the commodity form of value again appears in its original monetary form (in the form of proceeds from the sale of goods, products, works, services).

· Allocation of proceeds from sales to the fund for reimbursement of material costs, including depreciation, wage fund and net income in the form of profit.

· Redistribution of net income for payments to the budget and profit left at the disposal of the enterprise for production and social development.

Use of the profit remaining at the disposal of the enterprise for the formation of consumption, accumulation, reserve fund, etc.

· Monitoring compliance with the correspondence between the movement of material and monetary resources in the process of individual circulation of funds, i.е. for the state of solvency, financial independence of the enterprise from external sources of financing.

Under the forms of manifestation of finance is understood the content of financial relations arising between various subjects of economic activity.

Financial relations are not all monetary relations, but only those that constitute precisely the content of the finances of enterprises.

Financial relations that determine the content of the category of enterprise finance arise:

· Between the enterprise and its founders at the time of the formation of the authorized capital regarding its effective use, payment of dividends and interest.

· Between enterprises and organizations in the process of production and sale of products.

· Between the enterprise and the budget for all types of payments to the budget.

between the enterprise and financial system state with funding from the budget and off-budget funds, in cases stipulated by the current legislation.

· Between the enterprise and its employees, arising in the process of formation and distribution of monetary income of the enterprise.

· Between the enterprise and the bank when paying interest on loans, providing other banking services.

· In the process of investing in shares and bonds of other enterprises, receiving dividends and interest on them.

Financial relations with other enterprises and organizations include relations with suppliers, buyers, construction and installation and transport organizations, post and telegraph, foreign trade and other organizations, customs, enterprises, organizations and firms of foreign states. This is the largest group in terms of cash payments. The relationship of enterprises with each other is related to the implementation finished products and acquisition material assets for business activities. The organization of these relations has the most direct impact on the final results of production activities.