1 essence and functions of the organization's finances. Essence and organization of enterprise finance
INTRODUCTION
The finances of commercial organizations and enterprises, being the main link in the financial system, cover the processes of creating, distributing and using GDP in value terms. They function in the sphere of material production, where the total social product and national income are mainly created.
The financial conditions for managing have undergone significant changes, which have resulted in the liberalization of the economy, changes in ownership, large-scale privatization, changes in the conditions of state regulation, and the introduction of a system of taxation of commercial organizations and enterprises. All this led to an increase in the role of distribution relations. ultimate goal entrepreneurial activity became a profit while maintaining equity.
In the course of business activities of commercial organizations and enterprises, certain financial relations arise related to the organization of production and sale of products, the provision of services and the performance of work, the formation of their own financial resources and the attraction of external sources of financing, their distribution and use.
Thus, the direct connection between the finances of enterprises and all phases of the reproduction process determines their high potential activity and the wide possibility of influencing all aspects of management.
The relevance of the topic is confirmed by the fact that enterprise finance is an important tool for economic stimulation, control over the country's economy and its management. The possibility of meeting the social needs of society and improving the financial condition of the country depends on the state of the finances of enterprises.
The object of the study is the finances of enterprises. The subject of research is their essence and functions.
aim term paper is the study of the essence of enterprise finance. To achieve this goal, the following tasks were set and solved:
To study the essence of enterprise finance
Consider their functions and role
Analyze the principles of organization of enterprise finance
In the first chapter, the essence of enterprise finance is determined, their functions are studied.
The second chapter is devoted to the organization of enterprise finance. Here its principles and factors influencing the organization of the finance of enterprises are considered.
In the conclusion, all the presented material is summarized, and reasonable conclusions are drawn.
CHAPTER 1. ESSENCE AND FUNCTIONS OF ENTERPRISE FINANCE
1.1. Financial relations of enterprises
Finances of commercial enterprises and organizations are financial or monetary relations that arise in the course of entrepreneurial activity in the process of forming equity capital, trust funds of funds, their distribution and use.
According to its economic content, the entire set of financial relations can be grouped into the following areas:
- between founders at the time of the establishment of the enterprise - associated with the formation of equity and in its composition of the authorized (stock, share) capital. Specific ways of education authorized capital depend on the organizational and legal form of management. In turn, the authorized capital is the initial source of the formation of production assets, the acquisition of intangible assets;
- between enterprises and organizations- associated with the production and sale of products, the emergence of newly created value. These are financial relations between the supplier and the buyer of raw materials, materials, finished products, etc., relations with construction organizations in the implementation of investment activities, with transport organizations in the transportation of goods, with communications enterprises, customs, foreign firms, etc. These relations are the main ones, since the final financial result of commercial activity largely depends on their effective organization;
- between companies and their departments(branches, workshops, departments, brigades) - regarding the financing of expenses, distribution and use of profits, working capital. This group of relations influences the organization and rhythm of production;
- between a company and its employees- when distributing and using income, issuing and placing shares and bonds of the enterprise, paying interest on bonds and dividends on shares, collecting fines and compensation for material damage caused, withholding taxes from individuals. The efficiency of the use of labor resources depends on the organization of this group of relations;
- between the enterprise and the higher organization, within financial and industrial groups, within the holding, with unions and associations, of which the enterprise is a member. Financial relations arise during the formation, distribution and use of centralized trust funds and reserves, financing of targeted industry programs, conducting marketing research, research work, holding exhibitions, providing financial assistance on a returnable basis for the implementation of investment projects and replenishment of working capital. This group of relations is associated, as a rule, with the intra-industry redistribution of funds and is aimed at supporting and developing enterprises;
- between commercial organizations and enterprises- associated with the issue and placement of securities, mutual lending, equity participation in the creation of joint ventures. The possibility of attracting additional sources of financing for entrepreneurial activity depends on the organization of these relations;
- between enterprises and the financial system of the state- when paying taxes and making other payments to the budget, forming off-budget funds, the provision of tax benefits, the application of penalties, financing from the budget;
- between enterprises and the banking system- in the process of keeping money in commercial banks, obtaining and repaying loans, paying interest on a bank loan, buying and selling foreign currency, and providing other banking services;
- between enterprises and insurance companies and organizations- when insuring property, certain categories of employees, commercial and entrepreneurial risks;
- between enterprises and investment institutions- during the placement of investments, privatization, etc.
Each of the listed groups of relations has its own characteristics and scope. However, they are all bilateral in nature, and their material basis is the movement of funds. The movement of funds is accompanied by the formation of its own and in its composition the authorized capital of the enterprise, the circulation of the enterprise's funds begins and ends, the formation and use of cash funds and reserves.
1.2. Functions of enterprise finance
The essence of finance is most fully manifested in their functions. In the economic literature, there is currently a wide variation in the definition of functions, both in terms of their number and content. There is unity in only two functions : distributive and control .
Many literary sources indicate the following functions: the formation of capital, income and cash funds; providing function; resource-saving, etc. Obviously, the listed functions in their content have the same nature and purpose - providing the necessary sources of financing for the activities of the enterprise. Most economists recognize that enterprise finance performs three main functions: the formation of capital and enterprise income; distribution; control.
When financed first function there is a formation of the initial capital of the enterprise, its increment; attraction of funds from various sources in order to form the volume of financial resources necessary for entrepreneurial activity.
distribution function manifests itself in the distribution of the gross domestic product in value terms, the formation of funds of funds, the determination of the main cost proportions in the process of distributing income and financial resources, ensuring the optimal combination of interests of individual producers, enterprises and organizations and the state as a whole.
Objective basis control function - cost accounting of costs for the production and sale of products, performance of work, provision of services, formation of income and cash funds of the enterprise and their use. With the help of this function, control over the formation of the company's own capital, the formation and targeted use of cash funds, and changes in financial indicators is carried out.
At the heart of finance are distribution relations that provide sources of funding for the reproduction process (distribution function) and thus link together all phases of the reproduction process: production, exchange and consumption. However, the amount of income received by the enterprise determines the possibilities for its further development. Efficient and rational management of the economy predetermines the possibilities for its further development. And vice versa, disruption of the uninterrupted circulation of funds, the growth of costs for the production and sale of products, the performance of work, the provision of services reduce the income of the enterprise and, accordingly, the possibility of its further development, competitiveness and financial stability. In this case, the control function of finance indicates the insufficient impact of distribution relations on production efficiency, shortcomings in the management of financial resources, and the organization of production. Ignoring such evidence can lead to the bankruptcy of the enterprise.
Financial control over the activities of an economic entity is carried out by:
A direct economic entity through a comprehensive analysis of financial indicators, operational control over the progress of financial plans, timely receipt of proceeds from the sale of products (works, services), obligations to suppliers of inventory items, customers and consumers of products, the state, banks and other counterparties;
Shareholders and owners of a controlling stake by controlling the effective investment of funds, making profits and paying dividends;
Tax authorities that monitor the timeliness and completeness of the payment of taxes and other obligatory payments to the budget;
Control and Auditing Service of the Ministry of Finance of the Russian Federation, which controls the financial and economic activities of enterprises and organizations using budgetary funds;
Commercial banks when issuing and repaying loans, providing other banking services;
Independent audit firms during audits.
A positive financial result of the economic activity of commercial organizations and enterprises indicates the effectiveness of the applied forms and methods of managing financial resources, and, conversely, a negative result or its absence indicates shortcomings in the management of financial resources, organization of production and the possibility of bankruptcy of the enterprise.
1.3. The role and place of enterprise finance in common system finance and economy of the country
The finances of enterprises and sectors of the economy are the initial basis of the country's financial system, since they cover the most important part of all monetary relations in the field of social reproduction, where the country's social product is created. The possibility of meeting the social needs of society, improving the financial situation of the country depends on the state of the finances of enterprises. The finances of enterprises carry out the process of distribution and redistribution of the value of the social product at three main levels:
On a nationwide (national);
At the enterprise level;
At the level of production teams.
Distributing and redistributing value at the national level, the finances of enterprises provide the formation of the country's financial resources used to form the budget and extra-budgetary funds.
Enterprise level- they provide the sphere of material production with the necessary financial resources and funds for the continuous process of expanded reproduction.
At the level of production teams with the help of finance, monetary funds are formed - wages, material incentives, programs for the social development of enterprise teams are implemented.
Important role finances play in ensuring a balance in the national economy between material and monetary funds intended for the purposes of consumption and accumulation. The stability of the ruble largely depends on the degree of security of such a balance. money turnover, the state of payment and settlement discipline in the national economy
The direct connection between the finances of enterprises and all phases of the reproduction process determines their high potential activity and the wide possibility of influencing all aspects of management. They serve as an important tool for economic stimulation and control and management of the country's economy.
CHAPTER 2. ORGANIZATION OF THE FINANCE OF ENTERPRISES
2.1. Principles of organization of enterprise finance
In the economic literature there is no unity about the principles of organizing finance. Their number differs significantly in different economic textbooks and teaching aids. Most authors believe that the financial activity of enterprises is based on the following principles: economic independence; self-financing; liability; in performance results; formation of financial reserves; exercising control over financial and economic activities.
Economic independence assumes that regardless of the organizational and legal form of management, the enterprise independently determines its economic activity, the direction of investment of funds in order to make a profit. In a market economy, the rights of enterprises in the field of 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 regulates certain aspects of the activities of enterprises. Thus, the relationship between enterprises and budgets is regulated by law. different levels, off-budget funds; the state determines the depreciation and tax policy.
Self-financed 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. The implementation of this principle is one of the main conditions for entrepreneurial activity, which ensures the competitiveness of an economic entity. In developed market countries, at enterprises with a high level of self-financing, the share of own funds exceeds 70%.
To main own sources business financing in Russian Federation include profit and depreciation. But the total amount of own funds is not sufficient for the implementation of serious investment programs. Currently, not all enterprises are able to fully implement this principle. Enterprises of a number of sectors of the national economy, producing products and providing services necessary for the consumer, for objective reasons, cannot ensure its sufficient profitability. These include individual enterprises of urban passenger transport, housing and communal services, agriculture, and the defense industry. Such enterprises receive allocations from the budget on different terms.
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 implementation of an optimal tax policy by the state, 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 formation of a consumption fund and an accumulation fund. The interests of the state can be observed by the profitable activities of enterprises, the growth of production and the observance of tax discipline. It is obvious that at present there are weak prerequisites for the implementation of this principle: the existing taxation system is of a pronounced fiscal nature, due to the difficult economic situation in the country, many commercial organizations and enterprises do not fulfill their obligations to their employees to pay wages on time and Finally, the decline in production does not allow ensuring the interests of the state, the completeness and timeliness of paying taxes to the budget.
The principle of liability means the presence 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 by Russian law. 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 bear administrative responsibility for violation of tax legislation in accordance with the Legislation of the Russian Federation. 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, associated with certain risks of non-return of funds invested in the business. In the conditions of market relations, the consequences of the risk fall on the entrepreneur, who voluntarily and independently implements the program developed by him at his own peril and risk. In addition, in the economic struggle for a buyer, entrepreneurs are forced to sell their products with the risk of not returning 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 payment of tax and other obligatory payments to the budget from it.
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.
2.2. Factors affecting the organization of enterprise finance
The organization of the finances of enterprises is influenced by two factors: the organizational and legal form of management and sectoral technical and economic features.
Organizational and legal form of management determined by the Civil Code of the Russian Federation, according to which legal entity an organization is recognized that owns, manages or manages separate property and is liable for its obligations with this property. It has the right on its own behalf to acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and defendant in court. Entity should have an independent balance or estimate. Organizations may be legal entities: 1) pursuing the extraction of profit as the main goal of their activities - commercial organizations, 2) who do not have profit making as such a goal and do not distribute profit among the participants - non-profit organizations.
Commercial organizations are created in the form of business partnerships and companies, production cooperatives, state and municipal unitary enterprises.
Financial relations arise already at the stage of formation of the authorized (share) capital of an economic entity, which from an economic point of view is the property of an economic entity on the date of its creation. A legal entity is subject to state registration and is considered established from the moment of its registration.
The organizational and legal form of management determines the content of financial relations in the process of formation authorized (share) capital. The formation of the property of commercial organizations is based on the principles of corporatism. The property of state and municipal enterprises is formed on the basis of state and municipal funds.
Business partnerships and companies . Members full partnership create an authorized capital at the expense of the contributions of participants, and in essence the authorized capital of a general partnership is a share capital. By the time of registration of a general partnership, its participants must make at least half of their contribution to the share capital. The rest must be paid by the participant within the terms specified in the founding document. If this rule is not observed, the participant is obliged to pay to the partnership 10% per annum from the amount of the unpaid part of the contribution and compensate for the losses incurred. A participant in a full partnership has the right, with the consent of the other participants, to transfer his share in the share capital or part of it to another participant in the partnership or to a third party.
The founding agreement of a limited partnership stipulates the conditions on the amount and composition of the share capital, as well as the size and procedure for changing the shares of each of the general partners in the share capital, the composition, terms for making contributions and liability for breach of obligations. The procedure for the formation of the authorized capital is similar to the procedure for its formation in a full partnership. The management of the activities of a limited partnership is carried out only by general partners. Participants-contributors do not take part in business activities and are in essence investors.
Authorized capital limited liability company stu is also formed at the expense of the contributions of its participants. The minimum amount of the authorized capital in accordance with the law is set at 100 minimum wages on the day of registration of the company and must be paid at the time of registration by at least half. The rest must be paid during the first year of the company's operation. In case of violation of this procedure, the company must either reduce its authorized capital and register this reduction in the prescribed manner, or terminate its activities through liquidation. A member of the company has the right to sell his share in the authorized capital to one or more members of the company or to a third party, if this is stipulated in the charter.
The authorized capital is formed in the same way. additional liability companies.
open and closed joint-stock companies form the authorized (share) capital based on the par value of the shares of the company. The minimum amount of the authorized capital of an open joint-stock company, in accordance with the current legislation, is set at 1,000 minimum salaries on the day of registration of the company. The authorized capital is formed by placing ordinary and preferred shares. The share of preferred shares in the total amount of the authorized capital should not exceed 25%: Public subscription for shares of an open joint stock company is not allowed until the authorized capital is paid in full. This restriction is directed against the creation of fictitious joint-stock companies. When establishing a joint-stock company, all its shares must be distributed among the founders. At the end of the second and each subsequent financial year, if the value of net assets is less than the authorized capital, the joint-stock company is obliged to declare and register in the prescribed manner the reduction of its authorized capital. If the value of the specified assets of the company becomes less than the minimum authorized capital determined by law, the company is subject to liquidation. An open joint stock company has the right to conduct an open subscription to the shares they issue and to carry out their free sale on the stock market. Shares of a closed joint stock company are distributed only among its founders. The authorized capital of a closed joint stock company cannot be less than 100 minimum salaries established at the time of its registration.
Production cooperatives and unitary enterprises. In such business areas as production, processing and marketing of industrial and agricultural products, trade, household service etc., the preferred form of entrepreneurial activity is production cooperative. The property of a production cooperative consists of shares of its members in accordance with the charter of the cooperative. A production cooperative may create indivisible funds at the expense of a certain part of the property, if this is stipulated in its charter. By the time of registration of the cooperative, each of its members is obliged to pay at least 10% of their share contribution, and the remaining part - within a year from the date of registration.
A fundamentally different order of formation unitary enterprises(state and municipal enterprises) They can be created on right of economic management by decision of the authorized state or municipal body and, accordingly, the property is in state or municipal ownership. A unitary enterprise is managed by a head appointed by the owner or his authorized representative. The size of the statutory fund of a unitary enterprise must not be less than the amount specified in the law on state and municipal unitary enterprises. The authorized capital must be fully paid up by the time of registration of the unitary enterprise.
Unitary enterprises based on the right of operational management (state-owned enterprises) are created by decision of the Government of the Russian Federation. Their property is state property. Enterprises have the right to dispose of their property only with the consent of the owner.
The issue of profit distribution is also solved differently. The profit of commercial organizations, remaining after its distribution in the general established order, is distributed among the participants on the principles of corporatism. The profit of unitary enterprises after paying income tax and other obligatory payments remains entirely at the disposal of the enterprise and is used for production and social development.
Branch technical and economic features. Industry specifics affect the composition and structure of production assets, the duration of the production cycle, the features of the circulation of funds, the sources of financing for simple and expanded reproduction, the composition and structure of financial resources, the formation of financial reserves and other similar funds.
Thus, in agriculture, natural and climatic conditions dictate the need for the formation of financial reserves, both in cash and in kind; natural conditions determine the natural cycle of development of plants and animals and, consequently, the circulation of financial resources, the need for their concentration by certain periods, which in turn causes the need to attract borrowed funds.
Enterprises and institutions of transport carry out financial and economic activities on the principle of combining state regulation and market relations. The finished product to be sold in transport is the transport process itself. Thus, the production and sale of products coincide in time and the circulation is carried out in two stages instead of three. The costs of social labor associated with the transportation of products increase its value by the amount of transportation costs, which, in addition to additional new value, also contain a surplus product. In transport, the share of fixed production assets is large, the reproduction of which requires significant funds. Features of payments for transport services, reproduction of fixed assets determine the need for centralization of part of the funds at the level of the Ministry of Railways with their subsequent redistribution, which is reflected in the financial plan of the transport enterprise.
Organizations and enterprises in the sphere of commodity circulation, being a link between the production of products and their consumption, contribute to the completion of the circulation of a social product in a commodity form and thereby ensure its continuity. The specificity of trade is the combination of production operations (sorting, packaging, packaging, processing and storage of agricultural products, etc.) with operations associated with a change in the form of value, i.e. directly with the sale of products. The cost of purchased goods is not included in the costs of trade enterprises. A trading enterprise buys already produced goods, spending only on bringing them to consumers. There are peculiarities in the composition and structure of working capital, a significant part of which is invested in inventories. A feature of the sectoral structure of fixed assets is a combination of own and leased fixed assets. All these features are taken into account in the formation of financial resources and their use.
The finances of construction organizations also have a number of significant features due to the technical and economic features of the construction industry. The construction industry is characterized by a long production cycle compared to industry, a large share of work in progress in the composition of working capital. The need for working capital has large fluctuations both for individual objects and for technological cycles, which affects the structure of sources of financing working capital. The implementation of the construction of objects in various climatic and territorial zones determines the individual cost of objects and leads to an uneven receipt of revenue. Financing of construction is carried out on the basis of the estimated cost of construction and installation works. Features of pricing in construction determine the normative procedure for profit planning.
2.3. Organization of the financial work of the enterprise
The financial work of the enterprise in modern conditions acquires a qualitatively new content, which is associated with the development of market relations. In a market economy, the most important tasks of financial services are not only the fulfillment of obligations to the budget, banks, suppliers, and their employees, but also the organization of financial management.
Financial management is a system of optimal management of cash flows arising in the course of financial and economic activities of the enterprise in order to achieve the set goal and maximize profits.
The object of management in financial management is cash flow of an economic entity. It involves the development of a rational financial strategy and tactics of the enterprise based on the analysis of financial statements, predictive estimates of cash receipts and payments, their dependence on changes in the structure of the assets and liabilities of the enterprise.
This changes the previous ideas about the structure of the financial service and its place in the enterprise management system. The specific structure of the financial service depends on the organizational and legal form of management, the size of the enterprise, the volume of production, the amount of cash flow. The functions of the financial service include:
■ participation in the development and implementation of the business plan;
■ development of a financial development program;
■ definition of credit policy;
■ management of cash flows resulting from current (main), investment and financial activities;
■ development of monetary policy;
■ implementation of financial planning;
■ making settlements with suppliers, buyers, commercial banks, budget and other contractors;
■ providing insurance against financial and other risks;
■ analysis of financial and economic activities;
■ control over targeted and efficient use of funds.
Depending on the size of the enterprise, its industry affiliation, and the goals set, the listed functions can be detailed and expanded.
CONCLUSION
The finances of enterprises form the financial basis that ensures the continuity of the production process aimed at meeting the demand for goods and services. A part of the financial resources formed by the enterprise is directed to consumption purposes, thus, with the help of the finances of enterprises, the social tasks of the development of society are decentralized.
The finances of enterprises can serve as the main instrument of state regulation of the 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, to create new industries and modern technologies. Enterprise finance provides an opportunity to use citizens' money savings to invest in profitable financial instruments issued by individual enterprises.
The finances of enterprises in the sectors of the national economy are the initial basis of the entire financial system of the country. They occupy a decisive position in this system, since they cover the most important part of all monetary relations in the country, namely: financial relations in the field of social reproduction, where a social product is created, national wealth and national income are the main sources of the country's financial resources. Therefore, the possibility of satisfying the social needs of society and improving the financial condition of the country depends on the state of the finances of enterprises.
LIST OF USED SOURCES
1. Civil Code Russian Federation. Parts one and two. - M.: Prospekt, 1998
2. The Tax Code of the Russian Federation (Part One)" dated July 31, 1998 N 146-FZ (as amended on December 28, 2010) // Collection of Legislation of the Russian Federation, N 31, 08/03/1998, article 3824.
3. Federal Law "On Joint Stock Companies" dated December 26, 1995 No. 208-FZ (as amended on December 28, 2010) // Rossiyskaya gazeta. - 1995. - No. 248
4. Finance of enterprises. Nikolaeva T.P. - M.: MMIEIFP, 2003. - 158 p.
5. Finance: Textbook for universities / Ed. Prof. L.A. Drobozina. - M.: UNITI, 2001. - 527 p.
6. Finance of organizations (enterprises): Textbook for universities / N.V. Kolchina, G.B. Polyak, L.M. Burmistrova and others; Ed. Prof. N.V. Kolchina. - 3rd ed., revised. And extra. - M.: UNITY-DANA, 2005. - 368 p.
7. Finance of organizations (enterprises) / Ed. N.V. Kolchina. – 4th ed., revised. And extra. - M.: UNITY-DANA, 2009. - 383 p.
8. www.consultant.ru
Finance: Textbook for universities / Ed. Prof. L.A. Drobozina. - M.: UNITI, 2001 - S. 77
Finance of organizations (enterprises) / Ed. N.V. Kolchina - M.: UNITY-DANA, 2009 - P.9
Finance: Textbook for universities / Ed. Prof. L.A. Drobozina. – p. 80
Tax Code of the Russian Federation (part one)" dated July 31, 1998 N 146-FZ (as amended on December 28, 2010)
Enterprise finance. Nikolaeva T.P. - M.: MMIEIFP, 2003. - P. 15
Finance of organizations (enterprises) / Ed. N.V. Kolchina - P.16
Finance: Textbook for universities / Ed. Prof. L.A. Drobozina.– P. 85
Finance: Textbook for universities / Ed. Prof. L.A. Drobozina. – p. 86
Completed:
Checked:
Volgograd 2010
Introduction……………………………………………………………………….....….3
Chapter 1. Theoretical aspects of enterprise finance ………………...……...5
1.1. Essence, functions and organization of enterprise finances…..………....5
1.2. Financial resources of the enterprise……………………………….……..…8
1.3. The essence of financial management and the need for its application in the activities of the enterprise………………………………………...13
1.4. financial planning at the enterprise………………………..……19
Chapter 2 25
2.1. general characteristics enterprises, organizational structure and main activities ………………………………………………….….25
2.2. Financial and economic analysis of the activities of the enterprise LLC "Roga and Kopyta"………………………………………………………………………….…27
Chapter 3 Ways to improve the organization of finance ……...…………...… 40
3.1. The main ways to strengthen the finances of the enterprise ………………...….40
3.2. Forecast of the financial condition of the enterprise ……………………..…. 47
Conclusion…………………………………………………………………....…… 51
List of used literature………………………….…………..………53
INTRODUCTION
Finance is a system of economic relations for the formation and use of funds of funds based on the distribution and redistribution of national income.
For modern development economy this topic is very relevant, since the economy can develop efficiently and sustainably only if the main macroeconomic proportion (between consumption and accumulation) natural level, determined by the socio-economic conditions of social production (development of productive forces, the specific needs of society, etc.).
The purpose of the course work is to study the essence and functions of enterprise finance in a market economy, suggesting ways to strengthen the financial condition.
The work solves a number of problems: to characterize the essence and functions of the finances of the enterprise, to analyze the finances of the enterprise, to suggest ways to improve the finances of the enterprise.
The object of scientific research will be the economic state of society with limited liability Horns and Hooves (hereinafter - LLC Horns and Hooves).
The subject is the finances of the enterprise in the course of economic activity.
Research methods - historical and logical, analysis and synthesis, induction, deduction, expert assessments.
The work consists of an introduction, 3 chapters, 7 paragraphs, a conclusion and a list of references.
In the process of preparing and writing this work, the works of recognized experts in the field of financial analysis and financial management were used and summarized, legislative materials RF and international law on this topic, materials periodicals, scientific and methodological literature, theoretical materials, statistical collections and articles from the Internet, as well as analytical studies based on the balance sheet and other reporting forms.
Chapter 1. Theoretical aspects of enterprise finance
1.1. Essence, functions and organization of enterprise finance
In the process of developing market relations, non-state forms of economic management arose: joint-stock companies (open or closed type), partnerships, cooperatives. These enterprises are characterized by a special way of generating funds for their operation, by forming an authorized capital or an authorized fund.
The process of functioning of any enterprise is cyclical. Within one cycle, the necessary resources are attracted, they are combined in the production process, the products are sold and the final financial results are obtained. In a market economy, there is a shift in priorities in the objects and targets of the management system of the economic object. At the same time, the enlarged and relatively independent economic objects that make up the scope of application of general management functions are cash (more precisely, financial resources), labor resources, means and objects of labor. In a centrally planned economy, the priorities in the management of these objects, as a rule, were not placed. This approach was understandable and quite natural. The total planning, centralization, and limited resources inherent in this type of economy provided for the introduction of their rigid funding.
In a market economy, these restrictions are largely removed (limits are canceled, the role of centralized supply is reduced, etc.), and effective management involves optimizing the resource potential of an enterprise. In such a situation, the importance effective management financial resources. The financial well-being of the enterprise as a whole, its owners and employees depends on how efficiently and expediently they are transformed into fixed and working capital, as well as into means of stimulating the workforce. Under these conditions, financial resources are of paramount importance, since this is the only type of enterprise resource that can quickly be transformed into any other type of resource. The role of financial resources is important at all levels of government, however special meaning it acquires in terms of enterprise development.
Finance - a system of economic relations in the course of which the formation, distribution and use of centralized and non-centralized funds of funds take place in order to perform the functions and tasks of an economic entity and ensure conditions for expanded reproduction and meet the social needs of personnel. Simplifying the above, we can say that the finances of enterprises are monetary relations associated with the formation and distribution of financial resources, which are formed from such sources as: own and equivalent funds; mobilized in the financial market as a result of operations with securities; arriving in the order of redistribution (2, p.15).
Enterprise finance is the main element in the structure of the state financial system.
The concept of "finance" is usually associated with the process of cash flow. This process takes place not only on a social scale, but also in the distribution of profits at the enterprise, the transfer of tax payments to the state budget revenues, and the formation of various monetary funds.
Common to numerous and diverse financial processes and
operations is that they all have a monetary form of expression. money character - main feature financial sphere.
However, finance is not money itself, but monetary relations through which the distribution and redistribution of the value of the gross social product takes place. As a result, monetary incomes and savings are formed by enterprises and the state, which are used for expanded reproduction and satisfaction of social and other needs of society (5, p. 20).
In the structure of financial relations, the finances of enterprises occupy a decisive position, as they serve the main link in social production, where material wealth is created. As part of the finance of enterprises, the following groups of monetary relations can be distinguished:
Associated with the formation and use of target funds of funds at the enterprise (authorized fund, production development fund, incentive funds, etc.);
Arising between enterprises (in connection with the payment and receipt of fines in case of violation of contractual obligations, making share contributions by members of the association, their participation in the distribution of profits, etc.);
Formed by enterprises with insurance organizations (in connection with the formation and use of various kinds of insurance funds);
Formed by enterprises with banks (in connection with obtaining bank loans, repaying them and paying interest on them, as well as in the case when an enterprise provides the bank with its free cash for temporary use for a certain fee);
Arising from enterprises with the state (in connection with the payment of
tax budget, transfer of funds to various off-budget funds);
Developing in enterprises with their higher management structures (16, p. 17).
The essence of finance as an economic category is reflected in their functions. There are two main views on this issue in the financial literature.
1. The finances of enterprises perform 2 functions: distribution and control.
2. Finances have 3 functions: generation of income (accumulation of capital; implementation of expenses (distributive); efficiency control (28, p. 21).
The second position interprets the distribution function more broadly.
Through the financial mechanism, the distribution of finance occurs, that is, the formation of funds of funds and their use according to intended purpose(statutory fund, production development fund, material incentive fund, reserve fund, etc.).
The controlling function of finance allows you to find out how timely and fully financial resources are received by the relevant funds, whether they are used effectively. Financial information acts as a tool for implementing the control function of finance. It consists in financial indicators, which are contained in the accounting, statistical and operational reporting of the enterprise. Financial indicators allow you to see the various aspects of the enterprise and evaluate the results of economic activity.
Thus, in terms of economic essence, the finances of enterprises represent monetary relations in the formation and use of cash income and funds of enterprises.
The material carrier of financial relations is the financial resources at the disposal of enterprises and are intended to meet its production and social needs. Financial resources are presented in the form of profits, taxes, social insurance contributions, reserve and insurance funds (17, p. 45).
1.2. Enterprise financial resources
The financial resources of the enterprise are cash income, savings and receipts that are at the disposal of the enterprise. They are designed to fulfill financial obligations to the budget, banks, insurance and other organizations. In addition, financial resources serve to implement the costs of expanded reproduction, and are also used to provide economic incentives for employees of the enterprise. They are also material carriers of financial relations and are used in stock and non-stock forms (26, p. 78).
The sources of formation of financial resources are the own funds of the enterprise and attracted by it from various sources.
Initially, the formation of financial resources occurs at the time of the establishment of the enterprise, when the authorized capital is formed. Its value shows the size of those fixed and circulating funds that are invested in the production process.
According to Article 14 of the Law, "the authorized capital of a company is made up of the nominal value of the shares of its participants. The size of the company's authorized capital must be at least 100 times the minimum wage established by federal law on the date of submission of documents for state registration of the company. The amount of the company's authorized capital and the nominal value of the shares of the company's participants is determined in rubles. The authorized capital of the company determines the minimum amount of its property that guarantees the interests of its creditors. "
According to Article 15 of the Law, "a contribution to the authorized capital of a company may be money, securities, other things or property rights, or other rights having a monetary value."
According to Article 17 of the Law, "an increase in the authorized capital of a company is allowed only after its full payment ... can be carried out at the expense of the company's property, and (or) at the expense of additional contributions from the company's participants and (or), if this is not prohibited by the company's charter, at the expense of contributions third parties accepted into the company".
According to Article 18 of the Law, "an increase in the authorized capital of a company at the expense of its property is carried out by a decision of the general meeting of participants in the company, adopted by a majority of at least two-thirds of the votes of total number votes of the company ... The decision to increase the authorized capital of the company at the expense of property can be made only on the basis of data financial statements company for the year preceding the year during which such a decision was made ... The amount by which the company's authorized capital is increased at the expense of the company's property should not exceed the difference between the value of the company's net assets and the amount of the company's authorized capital and reserve fund.
The increase in the authorized capital of the company at the expense of additional contributions of its participants and contributions of third parties accepted into the company is regulated by Article 19 of the Law. "The general meeting of the company's participants by a majority of at least two-thirds of the votes of the total number of votes of the company's participants ... may decide to increase the authorized capital of the company by making additional contributions by the company's participants. Such a decision should determine the total cost of additional contributions, and also establish a single for all members of the company, the ratio between the value of the additional contribution and the amount by which the nominal value of its share is increased. This ratio is established on the basis that the nominal value of the share of a member of the company may increase by an amount equal to or less than the value of his additional contribution.
At the time of registration of the company, the authorized capital must be paid by its participants at least half. The remaining unpaid part of the authorized capital of the company is subject to payment by its participants during the first year of the enterprise's operation. If the company violates this obligation, then it must either declare a decrease in its authorized capital and register its decrease in the prescribed manner, or terminate its activities through liquidation.
Article 30 of the Law governs the provisions related to the creation of reserve and other funds of the company.
In the future, financial resources are formed mainly at the expense of profit and depreciation. Along with them, the sources of financial resources are: proceeds from the sale of retired property, various targeted revenues, payment for the maintenance of children in preschool institutions, mobilization internal resources in construction, etc.
Significant financial resources, especially for newly created and reconstructed enterprises, can be mobilized in the financial market. In this case, the sale of shares, bonds, and other types of securities issued by this enterprise, as well as borrowed funds in the form of various loans, is used.
In addition, enterprises can receive financial resources in the form of redistribution (in the form of insurance compensation payments from insurance companies, associations, concerns and sectoral structures in which they are included). The main financial resources are classified as follows:
Formed at the expense of own and equivalent funds. Formed at the expense of income (profit from financial transactions, profit from core activities and other types of income) and receipts (depreciation, proceeds from the sale of retired property, shares and other contributions of members of the labor collective);
Mobilized in the financial market (sale of own shares and other types of securities, credit investments);
Arriving in the order of redistribution (insurance compensation for emerging risks, dividends and interest on securities of other issuers, budget subsidies, other types of resources) (14, p. 86).
The financial resources formed from various sources enable the enterprise to invest in a new production in a timely manner, to ensure, if necessary, the expansion and technical re-equipment of the existing enterprise, to finance Scientific research, developments and their implementation.
Financial support for reproduction costs can be carried out in three forms: self-financing, lending and public financing (26, p. 54).
Self-financing is based on the use of the company's own financial resources. If its own funds are insufficient, it can either reduce some of its expenses, or use the funds mobilized in the financial market on the basis of securities transactions.
Lending is a method of financial support for production costs, in which costs are covered by a bank loan provided on the basis of repayment, payment, and urgency.
State financing is made on a non-refundable basis at the expense of budgetary and non-budgetary funds. Through such financing, the state purposefully redistributes financial resources between the production and non-production spheres, sectors of the economy and territories of the country, between forms of ownership, individual groups and strata of the population, etc.
In practice, all of the listed forms of cost financing can be applied simultaneously. The main thing is to achieve the optimal ratio between them for a given period. This is possible only on the basis of an active financial strategy pursued by the financial services of the enterprise. The ratio between own and borrowed funds is considered optimal if it is 2:1. In other words, own financial resources should exceed borrowed ones by 2 times. In this case, the financial position of the enterprise is considered stable.
The use of financial resources is carried out by the enterprise in many areas, the main of which are:
Payments to organizations of the financial and banking system in connection with the fulfillment of financial obligations (payment of taxes to the budget, payment of interest to banks for the use of loans, repayment of previously taken loans, insurance payments);
Investing own funds in capital expenditures to expand production and its technical renovation;
Investing financial resources in securities of other companies purchased on the market;
The direction of financial resources for the formation of monetary funds of an incentive and social nature;
Use of financial resources for charitable purposes, sponsorship (29, p. 41).
To ensure uninterrupted financing of the production process, financial reserves are of great importance. In the conditions of transition to a market economy, their role increases significantly. Financial reserves are able to ensure the continuous circulation of funds in the reproduction process, even in the event of huge losses or the occurrence of unforeseen events. Financial reserves can be created by enterprises themselves at the expense of their own financial resources (self-insurance), their management structures (on the basis of standard deductions), specialized insurance organizations (insurance method) and the state (reserve funds).
At the expense of financial resources, financial funds are formed, the purpose of which is to prepare conditions that ensure the satisfaction of constantly changing social needs.
1.3. The essence of financial management and the need for its application
With the transition to a market economy, the role of financial services in finding financial sources for the development of an enterprise increases. The search for effective directions for investing financial resources, operations with securities, timely attraction of borrowed funds become the main ones in managing the finances of an enterprise, forming the so-called "financial management". Management of financial resources, cash flows of an enterprise is one of the key elements of the entire system of modern management, which has a special priority for today's Russia. Financial management is a type of professional activity aimed at managing the financial and economic functioning of an enterprise based on the use modern methods. It includes:
Development and implementation of the financial policy of the enterprise using various financial instruments;
Decision-making on financial issues, their concretization and development of implementation methods;
Information support through the preparation and analysis of the financial statements of the enterprise;
Evaluation of investment projects and formation of an investment portfolio, assessment of capital costs, financial planning and control;
Organization of the apparatus for managing the financial and economic activities of the enterprise (2, p. 23).
Methods of financial management allow you to assess the risk and profitability of a particular method of investing money, the efficiency of the enterprise, the rate of capital turnover and its productivity.
The task of the financial management of an enterprise is the development and practical application of methods, means and tools to achieve the goals of the enterprise as a whole. At the same time, the following goals are achieved: profit maximization, the achievement of a stable rate of return in the planned period, and an increase in the enterprise's income. Ultimately, all these goals are focused on increasing the income of business owners (17, p. 96).
The tasks of financial management include finding the optimal balance between short-term and long-term goals for the development of an enterprise and decisions made within the framework of financial management. For example, a firm may refuse to invest in the renewal of fixed capital in order to obtain high current profits, but subsequently this will affect the competitiveness of its products and lead to a decrease in the profitability of production, and hence to a deterioration in the position of the enterprise in the market.
In long-term financial management, first of all, risk and uncertainty factors are taken into account. Ultimately, the main thing in the financial management of an enterprise is making decisions to ensure the most efficient movement of financial resources between the enterprise and its sources of financing, both external and internal.
Managing the flow of financial resources, expressed in cash, is a central issue in the financial management of the enterprise. The flow of financial resources is cash:
Obtained as a result of the financial and economic activities of the enterprise;
Acquired in the financial markets through loans;
Returned to the enterprise as a payment for invested capital in the form of interest and dividends;
Invested and reinvested in the development of economic activity of the enterprise;
Aimed at the payment of tax payments (9, p. 23).
The functions and methods of financial management can be divided into 2 blocks: a block for managing external finances and a block for internal accounting and financial control.
The external finance management block involves the implementation of the company's relations with legal and economic-independent market entities acting as clients, lenders, suppliers and buyers.
The internal accounting and financial control unit includes control over the maintenance of production records, cost estimates, control over the payment of wages and taxes, collection and processing of accounting data for internal financial management and for the provision of reporting data, preparation and control over the correctness of financial statements ( balance sheet, profit and loss statement, cash flow statement, etc.), analysis of financial statements and the use of its results for external and internal audit, assessment of the financial condition of the enterprise for the current period and its use for making operational management decisions and in planning purposes.
The most important decisions made in the field of financial management of an enterprise relate to the issues of optimizing the structure of assets, determining the need for their replacement or liquidation, developing methods and means for implementing investment policy, determining the need for financial resources, and managing a portfolio of securities.
The investment policy involves 2 types of financial management: long-term and short-term, which have their own character traits. Short-term investment decisions are aimed at determining the capital structure of the enterprise for the current period, which is reflected in its balance sheet. Long-term investment decisions, called strategic ones, are aimed at ensuring the successful functioning of the enterprise in the future. They require the use of modern methods of analysis to select the optimal directions and ways of development of the enterprise for the future, taking into account the objective laws and specifics of the development of the economy (18, p. 76).
Decisions on the choice of sources of financing are very important for an enterprise. It is necessary to develop and implement a policy for the optimal combination of own and borrowed funds to ensure the most efficient functioning of the enterprise, develop and implement a capital raising policy on the most favorable terms and develop an optimal dividend policy.
Financial management is such an organization of financial management by financial services that allows you to attract additional financial resources on the most favorable terms, invest them with the greatest effect, and carry out profitable operations in the financial market by buying and reselling securities.
The choice of a source for covering the costs of an enterprise with a lack of its own financial resources depends on the purpose of investing funds. To cover the short-term and medium-term need for working capital, it is advisable to use loans from credit institutions. When making large capital investments in the expansion, technical re-equipment or reconstruction of production, you can attract a long-term loan or use the issue of securities.
It is equally important for an enterprise to rationally use free financial resources, to find the most effective directions for investing funds that bring additional profit to the enterprise. It is important to be able to anticipate the dynamics economic processes and professionally master the technique of financial transactions.
When investing money in securities, financial services employees must comply with a number of requirements in order to achieve the highest return on such operations. These requirements are:
When buying shares (bonds) of other enterprises, it is necessary to invest only excess financial resources, and the enterprise must always have cash in case of upcoming payments. Cash can be either in the form of a cash reserve in the bank account of the enterprise, or embodied in highly liquid government securities;
Before purchasing shares (bonds) of any enterprise, it is necessary to comprehensively study its activities, analyze the dynamics of its financial results. It is better not to rely on your own analysis, but to get advice from reliable experts. It is not recommended to make a transaction, having only confidential, unverified information about the state of affairs of the enterprise whose securities are planned to be purchased. You can not buy shares of firms that do not publish reports on their income;
It is necessary to invest in the securities of several enterprises, and it is better if they represent different sectors of the economy. The investment of all financial resources in only one object may be unsuccessful if this enterprise fails or finds itself in a difficult economic situation;
It is necessary to regularly study the financial statements of those enterprises in whose shares (bonds) funds are invested. When considering reporting data, one should not be limited only to indicators of balance sheet and net profit, its distribution, the size and level of dividends; it is necessary to determine and study the dynamics of such coefficients as the rate of return on equity capital, the level of profitability, the rate of turnover of advanced funds, the ratio of own and borrowed funds, etc. The state of affairs at the enterprise of interest to the investor must be compared with the general situation in the corresponding sector of the economy;
It is not recommended to refuse to purchase shares (bonds) only because of low interest dividends. Sometimes it is better to go for relatively low dividends, if the stability and long-term nature of their receipt is confirmed. For example, in countries with developed market economies, securities with a fixed income are the most popular among investors. Investing funds is considered appropriate if the rate of return on investment exceeds the percentage paid by the credit system for the use of temporarily free funds (26, p. 29).
The role of financial policy in enterprise management is determined by the fact that it affects all aspects of its economic activity - scientific, technical, production, logistics, marketing - and reflects in a concentrated form the influence of numerous internal and external factors. Within the framework of the unified financial policy of the enterprise, the sources of financial resources and their distribution within the firm are determined.
It is difficult to determine specific forms and methods of conducting financial policy. Although within individual firms there are significant differences in the use of specific forms and methods of financial policy, we can talk about its general features, principles and tools. The most important of them: the distribution and redistribution of profits, financing and lending to the activities of various departments, determining the structure and nature of intra-company financial transactions and settlements on them.
1.4. Financial planning at the enterprise
The financial plan of the enterprise is interconnected with other aspects of planning the economic activity of the enterprise. These include plans for the sale of products, for raw materials, for production, for advertising, for capital investments, for attracting (returning) funds, for distributing income, as well as cost estimates (4, p. 32).
The immediate basis of the financial plan is the forecast calculations for the sale of products to the consumer or its marketing plan, based on orders, forecasts of demand for products and goods, levels of selling prices for them, and other factors of market conditions. On the basis of sales indicators, production volumes, costs of manufacturing products, carrying out work and providing services, as well as profits and other indicators are calculated.
The purpose of the financial plan of the enterprise, on the one hand, is the forecast of the medium-term financial prospects, and on the other hand, the determination of the current income and expenses of the enterprise. The financial plan is compiled by the enterprise for the year with distribution by quarters. It reflects income and expenses by items and proportions in the distribution of funds.
In addition to the balance of income and expenses, the financial plan contains calculations of a number of fundamental indicators: profits from industrial activities, depreciation deductions for the restoration of fixed assets, receipts of funds in the order of long-term and medium-term lending, bank interest on loans, financial results from other activities, etc.
The composition of the indicators of the planned balance of income and expenses of the enterprise is a certain system that allows, within each planning period, to determine the sources of costs, their ratios, the degree and direction of use, distribution of sources and balance.
Thus, the remaining part of the enterprise's profit after paying taxes is used for the needs of the enterprise, including the creation of a financial reserve, financing of capital investments and an increase in working capital, interest payments to banks for the credit resources they provide, dividends to founders and for other purposes.
The financing of capital investment costs is carried out at the enterprise through depreciation deductions for the full restoration of fixed assets, involvement in the investment process of excess stocks of equipment, machinery and materials, profits allocated for reinvestment, and from other sources.
Of exceptional importance for the success of financial management of an enterprise is the analysis of the implementation of the plans, first of all, the analysis of financial reporting indicators, that is, the identification of relationships and interdependencies between various indicators of its financial and economic activities included in the reporting. The results of the analysis allow interested persons and organizations to make decisions based on an assessment of the current financial situation and activities of the enterprise in previous years and its capabilities for the coming years.
Financial reporting is an important financial management tool. The main forms of financial reporting are: balance sheet, statement of income, statement of changes in financial position and statement of cash flows, and notes to the financial statements.
The most important types of analysis for the purposes of financial management are the study of reporting, horizontal, vertical, trend analysis of reporting, as well as the analysis of financial ratios.
The main reporting ratios used in financial management are:
Liquidity ratios: current liquidity ratio, urgent liquidity ratio and net working capital;
Business activity ratios (efficiency of resource use): assets turnover, receivables turnover, equity turnover;
Profitability ratios: profitability of all assets of the enterprise, profitability of sales, return on equity;
Capital structure ratios: ownership ratio, financial dependence ratio, creditor protection ratio (1, p. 9).
An important tool of financial management is not only the analysis of the level and dynamics of these ratios in comparison with a certain base, but also the determination of the optimal proportions between them in order to develop the most competitive financial strategy.
When conducting a financial analysis of the enterprise's activities, it is also necessary to take into account the dynamics of its financial stability indicators, since the strength of the enterprise's finances acts as a criterion for its market position. The key to the survival of an enterprise is its stability. In order for an enterprise to operate effectively in the market and develop, it first of all needs the stability of cash receipts sufficient to pay off suppliers, creditors, employees, local authorities, and the state. After all calculations and fulfillment of obligations, profit is also needed, the volume of which should not be lower than planned.
Despite the simplicity and efficiency of financial ratios, when making financial decisions, it is necessary to take into account the limitations of these indicators. When conducting a financial analysis of the economic activity of an enterprise, the following points should be taken into account.
An analysis of the company's cash flow should be based on complete and reliable information reflected in the financial statements, some of which is mandatory, and some is used for the successful organization of the activities of a financial manager.
The most important components of the analysis of the company's cash flow - analysis of the turnover of fixed assets, working capital and financial results.
When analyzing fixed assets, the starting point is their monetary value, including the initial, replacement, residual and market value. The fixed assets of the enterprise, as well as the turnover on their implementation, are subject to taxation. At the same time, enterprises receive tax incentives for the renewal of fixed assets. The reproduction of fixed assets includes their input, disposal and growth. Of great importance is the process of expanded reproduction of fixed assets, which means their expansion and renewal on a new technological basis. The reproduction of fixed assets is provided by capital investments in the form of real investments
In the analysis of working capital, the main place is occupied by inventories. Their evaluation is usually carried out at the average actual purchase prices (13, p. 16).
The main part of the costs of production and sale of products, works and services is related to the cost, production and distribution costs. Part of the costs is related to financial results. The list of costs included in the cost is determined normative documents. Due to cost savings, rational use of material resources, an increase in profits is ensured.
The receipt of proceeds from the sale of products largely depends on the procedure for settlements between the supplier and the consumer, the forms of settlements are established by them in the agreement or contract. The most common payments are by payment orders, less often by checks and letters of credit.
With non-cash payments, the shipment and payment of goods do not coincide in time, which leads to the appearance of accounts payable or receivable, which is subjected to a thorough analysis.
Efficient use of working capital means the acceleration of their turnover and release from circulation, which is an additional source of growth in working capital.
The purpose of entrepreneurial activity is to make a profit, therefore, the final stage in the analysis of the company's cash flow is the analysis of financial results.
The financial plan of the enterprise provides for the interconnection of financial indicators, the distribution of income and the formation of cash funds. The strategic financial plan is one of the company's trade secrets. Planning of financial resources and investments guarantees the fulfillment of obligations to the budget, banks and provides financing for entrepreneurial activities.
We concretize the theoretical postulates on the example of the limited liability company "Horns and Hooves".
Chapter 2
2.1. General characteristics of the enterprise, organizational structure and main activities
The object of this analysis is the enterprise - OOO "Roga i Kopyta". Legal form - Limited Liability Company. The form of ownership is private property.
The enterprise also has 2 separate subdivisions in Volgograd and Astrakhan. Addresses of separate subdivisions: 400078, Volgograd, Kuznetsova st., 20, 414040 Astrakhan, st. Communist, d.23 / st. Raskolnikov d.6 "a"
Roga i Kopyta LLC is a regional representative of CJSC PF SKB Kontur in the Volgograd region, the head Service Center for servicing subscribers of the Kontur-Extern System (developer of CJSC PF SKB Kontur, Yekaterinburg), operating on the basis of License B030 No. 0053.
Reason for activity: Agreement with CJSC "PF" SKB Kontur ", License issued by CJSC "PF "SKB Kontur" for the right to conduct activities as the Registration Center of the "Kontur-Extern" system in the Volgograd region
Implementation of the System on the territory of the Volgograd region was started in October 2003, and since January 2004 it has been operating in the commercial operation mode. During this time, more than five thousand enterprises of Volgograd and the region have connected to the System, which have transferred more than 200,000 electronic documents using the System.
The main document management services in the System are:
Submission of tax and accounting reports
Information about the state of the personal account
Non-formalized workflow
Submission of reports to the PF
Submission of reports to the statistical authorities
The purpose of the activity of LLC "Horns and Hooves"
· Registration of subscribers in the "Kontur-Extern" System.
· Maintaining the efficiency of the tax authorities in relation to the "Kontur-Extern" System.
· Search for subsidiary remote registration centers (subsidiary UCRs) on the territory of the Volgograd region.
· Consulting support for subscribers of the "Kontur-Extern" system by telephone hotline and by e-mail.
Rendering additional services related to the development of job descriptions and regulations for working with confidential information at the workplace of a subscriber of the Kontur-Extern system.
· To assist in the promotion of the products of CJSC PF SKB Kontur, as well as to study the territory of the Volgograd region in order to identify new customers.
Organizational structure Roga and Hooves LLC is as follows
Rice. 1. Organizational structure of Horns and Hooves LLC
2.2. Financial and economic analysis of the activities of the enterprise LLC "Roga and Kopyta"
Liquidity and solvency assessment
The purpose of this analysis is to determine the ability of the enterprise to pay its short-term obligations during the year. A detailed analysis of the liquidity and solvency of an enterprise can be carried out using absolute and relative indicators. (3, p. 78)
Important for the calculation of a number of analytical coefficients is the indicator of the value of own working capital, which characterizes that part of the enterprise's own capital, which is the source of coverage of current assets. The value of own working capital is numerically equal to the excess of current assets over current liabilities, so any changes in the composition of its components directly or indirectly affect the size and quality of this value. As a rule, a reasonable increase in own working capital is considered as a positive trend, but there may be exceptions. (3, p.13) For example, the growth of this indicator due to an increase in bad debtors is unlikely to improve the qualitative composition of own working capital. We take Table 1 as the basis for calculations (data for calculations are taken from Appendix 2-5) .
The absolute liquidity ratio shows what part of the short-term debt the organization can repay in the near future. Characterizes the solvency of the organization on the date of the balance sheet. (20, p. 74) this enterprise the value of the absolute liquidity ratio at the beginning of 2009 is 0.067, at the end of 2008 this indicator decreased by 0.06 and amounted to 0.007. The coefficient value of 0.007 indicates that the available cash and securities are not enough to cover the current liabilities of the enterprise.
The quick liquidity ratio is used to repay urgent liabilities. (20, p. 42) At the beginning of 2009, the indicator was 0.092, by the end of the next year it changed to -0.085 and the indicator is 0.007, the general conclusion is that this dynamics negatively affects the solvency of the enterprise, i.e. to. coefficient less than 0.6. This indicates a high financial risk associated with the fact that the company is unable to pay its bills.
The current liquidity ratio is used to assess the financial stability of the enterprise. (20, s, 13) For this enterprise, the indicator at the beginning of 2008 is 1.23, over the next year there is a slight increase in the coefficient by 0.07 and at the beginning of 2009 it is 1.30, this value is enough for the indicator to be normal, Thus, the conclusion is that the enterprise has enough working capital to cover its short-term obligations. The company is financially stable.
The current liquidity ratio is less than the standard, which demonstrates the lack of current assets to cover short-term liabilities.
The data in table 4 indicate a low level of liquidity of the constituent elements of current assets; it is significantly below the established normative values for all indicators.
The general liquidity ratio is used when choosing the most reliable partner on the basis of reporting. (20, p. 16) At the beginning of 2009, the indicator was 0.42, then there is a slight deterioration by 0.03, and at the end of 2009 the indicator is 0.39 General conclusion : this indicator is not normal for this enterprise.
In explanation of the above calculations, we present the following description. The coverage ratio reflects whether the company has enough working capital to pay off its short-term liabilities during the year. The generally accepted standard for the value of this indicator is in the range from 1 to 2. (20, p. 18) I.e. we can say that this company does not have enough working capital to pay off short-term liabilities, this once again confirms the current liquidity ratio.
Summarizing the calculation data of the quick liquidity ratio, we can say that even with the help of receivables, the company is not able to pay its debts, which also confirms the unstable financial situation.
In the conditions of the Russian economy, the expediency of assessing the liquidity of enterprises through the coefficients of general and current liquidity raises doubts. It seems that in most cases, liquidity assessment is more reliable and objective only in terms of cash. However, there are positive moments in the work of the enterprise, this can be seen from the analysis of the change in coefficients: for the analyzed period, the standard was not achieved, but growth was outlined, in particular, the absolute liquidity ratio increased slightly by the end of the period, but increased. This means that the company will be able to repay all its debt obligations in the future.
Assessment of business activity of the enterprise and profitability
For implementation this direction various indicators characterizing the efficiency of the use of material, labor and financial resources can be calculated. The main ones are production indicators, return on assets and turnover indicators. These indicators are of great importance for assessing the financial position of the enterprise, since the rate of turnover of funds, i.e. the speed of their transformation into a monetary form, have a direct impact on solvency, in addition, an increase in the rate of turnover of funds is reflected in an increase in the production potential of the company, which generally affects the efficiency of the entire production. (6, p. 12)
The results of calculating the return on assets indicate that this fact (decrease in the turnover of fixed assets) may be associated with obsolescence and wear and tear of production equipment, i.e. we can say that the technical level of fixed assets of the object under study is at a low level.
To clarify the conclusions about the turnover of funds and the financial condition in general of this researched subject, we will consider a number of particular indicators of the turnover of current assets and current liabilities (table 5).
Table 5 Evaluation of business activity
| Coefficient / calculation formula | Changes |
||
| 1 | 2 | 3 | 4 |
| Sales proceeds (line 010 f. No. 2) | 1268 | 4066 | 2798 |
| Net income (line 140-line 150) | 168 | 594 | 426 |
| Return on assets (line 010f. No. 2 / (line 120 beginning + line 120 end) / 2) | 634 | 2033 | 1399 |
| Turnover of funds in settlements (in turnover) (line 010f. No. 2 / line 240) | 0 | 214 | 214 |
| Turnover of funds in settlements (in days) (360 days / item 4) | 0 | 1,68 | 1,68 |
| Inventory turnover (in turnovers) | 0,48 | 1,52 | 1,04 |
| Inventory turnover (in days) (360 days / item 6) | 750 | 236,84 | -513,16 |
| Short-circuit turnover (in days) (((line 610 + line 620) beginning + (line 610 + line 620) end / 2) 360 / line 020 f. No. 2) | 0 | 0 | 0 |
| Duration of the operating cycle (clause 5+clause 7) | 750 | 238,52 | -511,48 |
| The duration of the financial cycle (clause 9-clause 8) | 750 | 238,52 | -511,48 |
| Repayment of DZ (((line 240beginning + line 240end) / 2) / line 010f. No. 2) | 0,007 | 0,002 | -0,005 |
| Equity turnover ((line 010f. No. 2/(line 490beginning + line 490end)/2) | 2,91 | 9,36 | 6,45 |
| Total capital turnover (line 010f. No. 2 / average balance sheet total) | 0 | 0 | 0 |
Having considered the data in Table 5, it should be noted that the turnover of current assets has increased. In general, this trend is positive, but in the case when this turnover is due to an increase in funds.
Based on the above indicators, we will analyze the indicators characterizing the main stages of the circulation of funds, during production activities enterprises. These indicators are: the duration of the operating cycle and the duration of the financial cycle. The decrease in the duration of the operating cycle can be seen as a positive trend.
Obviously, different types of current assets have different liquidity, which is understood as the time period required to convert this asset into cash, and the costs of ensuring this conversion. Only cash has absolute liquidity. In order to pay suppliers' invoices on time, the company must have a certain level of absolute liquidity. As studies of the liquidity of this enterprise showed, the object under study has a rather low solvency, due to a small share of cash in assets, so a small additional cash inflow could be extremely useful.
The efficiency of the economic activity of the enterprise and the economic feasibility of its operation is directly related to its profitability. (21, p. 18) Consider the structure of working capital (table 6).
Table 6 Structure of working capital, thousand rubles
The load factor shows the amount of working capital per unit of products sold: according to table 6, it can be seen that in 2009 this indicator increased.
As a result, after analyzing the values of the given coefficients, we can conclude that working capital was used most efficiently in 2009.
Important for the enterprise is also an indicator of the availability of own working capital. It is calculated as the ratio of the amount of working capital to total amount working capital. (21, p. 19)
In the process of analysis, it is necessary to study in more detail the composition, structure and dynamics of fixed capital.
Long-term assets, or fixed capital, are investments of funds with long-term goals in real estate, bonds, stocks, mineral reserves, joint ventures, intangible assets, etc. (21, p. 22)
Table 8 Composition and dynamics of fixed capital
The profitability of production and assets is an important characteristic of the efficiency of the use of the company's assets and capital. The main indicators of profitability are: product profitability, profitability of core activities, return on equity, and others,
Table 9 Calculation of profitability
The profitability indicators calculated in all variants are positive values, which characterizes the enterprise as financially stable and profitable.
In addition, there are indicators that allow you to judge and evaluate the composition and structure of fixed assets:
1. Renewal coefficient (K update), characterizing the share of new funds in their total value at the end of the year:
To update = the cost of received fixed assets / the cost of fixed assets at the end of the period.
2. Term for renewal of fixed assets (T update):
T obn = the cost of fixed assets at the beginning of the period / the cost of received fixed assets.
3. Retirement rate (Kv):
Kv = value of retired fixed assets / cost of fixed assets at the beginning of the period.
4. growth rate (K pr):
K pr = the cost of the increase in fixed assets / their value at the beginning of the period. (5, p.18)
We will summarize the analysis of the use of the OS in Table 10.
Table 10 Analysis of the use of fixed assets
Analysis of the calculated coefficients shows that in 2009. the structure of fixed capital did not increase, tk. the coefficients of renewal and growth are equal to zero, the disposal of fixed assets has not occurred.
Unlike the concepts of "solvency" and "creditworthiness", the concept of "financial stability" is broader, as it includes an assessment of various aspects of the enterprise's activities. (8, p. 16)
A general indicator of the financial stability of an enterprise is an excess or lack of sources of financial resources for the formation of reserves and costs. (8, p. 16)
Important indicators characterizing the financial stability of the enterprise are:
The coefficient of financial autonomy (independence) or the share of equity in its total amount;
Financial dependency ratio (share of borrowed capital in the total balance sheet currency);
Shoulder of financial leverage or coefficient of financial risk.(8, p.20)
Consider these indicators in table 11.
ZZ (stocks and costs) = stocks + VAT on acquired values;
SOS (own working capital) = capital and reserves - non-current assets;
CF (functioning capital) = capital and reserves + long-term liabilities - non-current assets;
| Indicators | At the beginning of 2009 | At the end of 2009 |
| 33 (p.210+p.220) | 861 | 2951 |
| SOS (p.490-p.190) | 178 | 691 |
| KF (p.490+p.590-p.190) | 178 | 691 |
| VI (p.490+p.510+p.520-p.190) | 178 | 691 |
| Fs \u003d SOS - ZZ | -683 | -2260 |
| Ft \u003d KF - ZZ | -683 | -2260 |
| Fo \u003d VI - ZZ | -683 | -2260 |
VI (value of sources) \u003d capital and reserves + long-term liabilities + loans and credits - non-current assets.
The index Фс has a negative value at the beginning of 2008 and amounts to -683, at the end of 2009 it does not change, so the stock of this enterprise is not enough for its own working capital. Indicator Ft and Fo - these indicators also have a negative value.
Conclusion: according to table 11, we can conclude that the financial condition of this enterprise is unstable (all F<0).
Let's consider the calculation and analysis of market stability coefficients according to Table 12.
Table 12 Calculation of indicators of market (financial) stability
| Index | For the beginning of the year | At the end of the year | Change |
| 1 | 2 | 3 | 4 |
| U1-coefficient of the ratio of borrowed and own funds (line 610 + line 620 / line 490) | 4,28 | 3,31 | -0,97 |
| U2 - coefficient of provision with own sources of financing (p. 490-p. 190 / p. 290) | 0 | 0 | 0 |
| U3 - financial independence ratio (p. 490 / p. 300) | 0,19 | 0,23 | 0,04 |
| U4 – funding ratio (line 490/line 590+line 610+line 620) | 0 | 0 | 0 |
| U5 - financial stability ratio (p. 490 / p. 300) | 0,19 | 0,23 | 0,04 |
As Table 12 shows, at the beginning of 2009 the ratio of borrowed own funds is 4.28, for the next year the indicator decreased by 0.97 and amounted to 3.31, which does not satisfy the normal limit (U £ 1). Consequently, the value of the indicator is influenced by the following factors: low turnover of enterprise funds, unstable demand for products sold, lack of established supply and marketing channels. This indicator should be considered in conjunction with the equity ratio U2. For this enterprise, U2 is equal to 0. The indicator does not meet the standard value, so the organization depends on borrowed sources of funds in the formation of its current assets. The value of the financial independence ratio U3 at the beginning of 2009 equal to 0.19, during the next year the indicator increased by 0.04 and amounted to 0.23, but the indicator is below the critical point, which indicates an unfavorable financial situation. This conclusion confirms the value of the funding ratio. The Financial Strength Ratio is well below a worrying limit. Thus, all indicators of financial stability do not meet the recommended values and their dynamics is negative.
The higher the level of the first indicator and the lower the second and third, the more stable the FSP.
Thus, the analysis of the coefficients and the assessment of the dynamics of their changes allows us to draw the following conclusions: the company depends on external investors, is unable to maintain the level of its own working capital and replenish working capital from its own sources. The company is financially unstable.
Chapter 3. Ways to improve the organization of finance
3.1. The main ways to strengthen the finances of the enterprise
Due to the fact that at present the finances of enterprises are in a crisis, the priority task for the state and enterprises is to strengthen the finances of enterprises and, on this basis, to stabilize the finances of the state. Without its implementation, other tasks cannot be solved. The main ways to strengthen the finances of enterprises are related to the optimization of the funds used by them and the elimination of their deficit.
The most important areas for improving financial work at enterprises are as follows:
Systematic and ongoing financial analysis of their activities;
Organization of working capital in accordance with existing requirements in order to optimize the financial condition;
Optimization of enterprise costs based on the analysis of the interaction of the relationship "costs-revenue-profit";
Optimization of profit distribution and selection of the most effective dividend policy;
Optimization of the property structure and sources of its formation in order to prevent an unsatisfactory balance sheet structure;
Development and implementation of the strategic financial policy of the enterprise.
The main goal of financial analysis is to obtain several key (most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors. At the same time, the analyst and the manager (manager) may be interested in both the current financial condition of the enterprise and its immediate or long-term prospects, that is, the expected parameters of the financial condition.
The efficiency of the use of working capital depends on many factors that can be divided into external factors that have an impact regardless of the interests of the enterprise, and internal factors that the enterprise can and should actively influence. At the present stage of economic development, the main external factors include such as the non-payment crisis, high taxes, high bank loan rates. The crisis in the sale of manufactured products and non-payments lead to a slowdown in the turnover of working capital. Therefore, it is necessary to produce those products that can be sold quickly and profitably, stopping or significantly reducing the output of products that are not in current demand. In this case, in addition to the acceleration of turnover, the growth of receivables in the assets of the enterprise is prevented.
An important condition for improving the efficiency of the use of working capital is the rational organization of inventories. The main ways to reduce inventories are as follows:
Rational use;
Elimination of excess stocks of materials;
Improvement of rationing;
Improving the organization of supply.
An important role belongs to improving the organization of warehouse management.
Reducing the time spent by working capital in work in progress is achieved by improving the organization of production, improving the equipment and technology used, improving the use of fixed assets, especially their active part, saving on all items of working capital.
The stay of working capital in the sphere of circulation does not contribute to the creation of a new product. Excessive diversion of them into the sphere of circulation is a negative phenomenon. The most important prerequisites for reducing the investment of working capital in this area are:
Rational organization of sales of finished products;
Application of progressive forms of payment;
Timely execution of documentation and acceleration of its movement;
Compliance with contractual and payment disciplines.
A necessary condition for making a profit is a certain degree of development of production, which ensures the excess of proceeds from the sale of products over the costs of its production and marketing. The components of the main factor chain that generates profit - "costs - output - profit" - should be under constant attention and control. This problem is solved on the basis of the organization of cost accounting according to the direct costing system, the importance of which increases in connection with the transition to a market economy. The features of this system are:
Separation of costs into fixed and variable;
Connection of production and financial accounting;
Multi-stage income statement preparation;
Development of a methodology for economic-mathematical and graphical presentation and analysis of reports for forecasting net income.
The mechanism for distributing profits must be constructed in such a way as to contribute in every possible way to increasing the efficiency of production and to stimulate the development of new forms of management.
One of the most important problems of profit distribution, both before the transition to market relations and in the conditions of their development, is the optimal ratio of the share of profit accumulated in budget revenues and remaining at the disposal of business entities. An economically justified system of profit distribution should first of all guarantee the fulfillment of financial obligations to the state and ensure the production, material and social needs of enterprises to the maximum. After payment of all mandatory payments, net profit remains, part of which can be directed to the production and social development of the company, and the other part to the payment of interest on bonds, as well as to the reserve fund. Payments to employees in the form of monetary rewards or shares are possible in accordance with a certain percentage provided for by the charter. The remaining net profit is used to pay dividends to shareholders. The Board of Directors, based on the financial condition of the company, the competitiveness of its products and development prospects, makes a decision on the specific ratio of the amount of net profit distributed in the indicated areas. It is possible that in certain periods the profit will not be directed to the payment of dividends to shareholders, but in a larger amount will go to the production and social development of the labor collective and other purposes.
The financial condition of the enterprise is characterized by the placement and use of funds (assets) and the sources of their formation (liabilities). To prevent an unsatisfactory balance sheet structure, it is necessary to monitor the change in the structure of property and the sources of its formation and take measures aimed at improving the structure: the optimal ratio of own and borrowed funds of the enterprise, reducing the share of receivables and payables, reducing unjustified stocks of material resources, etc.
In the conditions of market relations, there is an objective need to determine trends in the financial condition, orientation in financial opportunities and prospects, and assess the financial condition of other economic entities. The company needs to develop an internal financial strategy. It includes different ways and actions to achieve the main strategic goal, namely:
· formation of financial resources and centralized strategic management of them;
Identification of decisive areas and focusing on their implementation of efforts, maneuverability and the use of reserves by the financial management of the enterprise;
Ranking and phased achievement of goals;
· compliance of financial actions with the economic condition and material capabilities of the enterprise at each time interval;
Creation and preparation of strategic reserves;
taking into account the economic and financial capabilities of their competitors;
· identification by the head of the threat from competitors, mobilization of the main forces to eliminate it and a skillful choice of directions for financial transactions;
Maneuvering and fighting for the initiative to achieve decisive superiority over competitors.
The financial strategy is developed taking into account the risk of non-payments, inflation surges and other force majeure circumstances. It should correspond to production tasks and, if necessary, be adjusted and changed. Control over the implementation of the financial strategy ensures the verification of revenues, their economical and rational use. Well-established financial control helps to identify internal reserves, increase the profitability of the economy, increasing cash savings.
The strategy for achieving private goals is the skillful use of financial transactions aimed at ensuring the implementation of the main strategic goal.
The objectives of the financial strategy are:
Study of the nature and patterns of formation of finance in market conditions of management;
Development of conditions for the preparation of possible options for the formation of financial resources of the enterprise;
Determination of financial relationships with suppliers and buyers, budgets of all levels, identification of reserves and mobilization of enterprise resources for the most rational use of production capacities, fixed assets and working capital;
Providing the enterprise with financial resources;
Ensuring the effective investment of temporarily free funds of the enterprise in order to obtain maximum profit;
Determination of ways to implement a successful financial strategy and strategic use of financial opportunities, comprehensive training of enterprise personnel to work in market conditions.
3.2. Forecast of the financial condition of the enterprise
After conducting a financial analysis of the enterprise, we can offer the following.
For financial recovery, the enterprise must adhere to the goals that were set by external management.
Solvency should be restored, tk. According to the results of the analysis, there are prerequisites for this.
The only acceptable means of restoring solvency is to increase the current assets of the enterprise at the expense of the results of economic activity with a simultaneous increase in the passive item "Profit". Thus, the criterion for the restoration of solvency is the receipt in the forecast period of profit in the amount necessary to ensure a two-fold excess of current assets over current liabilities.
The profitability of the enterprise's funds or their sources is determined both by the pricing policy of the enterprise and the level of costs for the production of sold products, and by business activity, measured by the turnover of funds or their sources, as well as the profitability of activities.
Ways to increase the profitability of funds or their sources: with low profitability of sales, it is necessary to strive to accelerate the turnover of capital and its elements, and, conversely, the low business activity of an enterprise determined by one reason or another can only be compensated by a decrease in production costs or an increase in product prices, t .e. increase in profitability of sales.
Undoubtedly, the company needs to reduce the amount of receivables and payables, but also should not allow the growth of these indicators.
For this you should:
If possible, focus on increasing the number of orders in order to reduce the scale of the risk of non-payment, which are significant in the presence of a monopoly customer;
Monitor the status of settlements on overdue debts;
Timely identify unacceptable types of receivables and payables, which primarily include: arrears to suppliers and arrears of buyers for more than three months, arrears in wages and payments to the budget, extra-budgetary funds.
Since a positive factor in financial stability is the availability of sources of reserves formation, and a negative factor is the size of reserves, the main way out of the financial crisis will be: replenishment of sources of reserves formation and optimization of their structure, as well as a reasonable decrease in the level of reserves.
A less risky way to replenish sources of reserves should be recognized as an increase in real equity (net assets) by increasing profits and profitability, repaying the debt of participants (founders) on contributions to the authorized capital. The main form of increasing the equity capital of an enterprise should be the distribution of net profit to reserve funds formed in accordance with the constituent documents, and the preservation of retained earnings for the purposes of the main activity with a significant restriction on its use for non-production purposes.
Thus, the company should increase profits by increasing business activity and profitability of production and economic activities.
To do this, it is necessary to improve the material and technical base, which requires additional investment, and the company lacks its own funds. The question arises where to get the money.
Attracting loans for profitable projects that can bring a high income to an enterprise is also one of the reserves for the financial recovery of an enterprise.
One of the effective methods of updating the material and technical base of an enterprise is leasing, which does not require a full one-time payment for the leased property and serves as one of the types of investment. The use of accelerated depreciation for leasing transactions allows you to quickly update equipment and carry out technical re-equipment of production.
In the future, it is necessary to quickly respond to market conditions, changing the product range and pricing policy in accordance with its requirements.
According to the analysis, it is clear that Roga i Kopyta LLC has a significant amount of receivables, which tends to grow.
Therefore, an enterprise should use an important source of financial recovery - factoring, i.e. assignment to a bank or a factoring company of the right to claim receivables, or an assignment agreement, under which an enterprise assigns its claim to a debtor to a bank as security for the repayment of a loan. This procedure was initiated by the external management plan.
One of the main and most radical directions of the financial recovery of the enterprise is the search for internal reserves to increase the profitability of production and achieve break-even work through a more complete use of the production capacity of the enterprise, improving the quality and competitiveness of products, reducing its cost, rational use of material, labor and financial resources, reduction of unproductive expenses and losses.
These measures contribute to the acceleration of capital turnover by reducing excess stocks and the period of collection of receivables. All this will increase profits, obtain own working capital and achieve a more optimal financial structure of the balance sheet and financial stability.
Conclusion
Finance is an integral part of monetary relations and plays a huge role in the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the enterprise and ensure conditions for expanded reproduction. It can also be said that finances are objectively necessary, as they are conditioned by the needs of social development. Without finance, it is impossible to ensure the individual and social circulation of production assets on an extended basis, to regulate the sectoral and territorial structure economically, to stimulate the most rapid introduction of scientific and technological achievements, and to satisfy other social needs.
The functions of finance, namely: distribution and control - these functions are carried out by finance at the same time. We must not forget that in addition to these two main functions, there are others: the regulatory function - it is associated with state intervention through finances in the reproduction process, the stabilization function - provides stable conditions for all economic entities and citizens in economic and social relations.
Thus, the finances of the enterprise are monetary relations for the formation and use of monetary relations and funds of the enterprise. The main in the management of the enterprise's finances are: the search for effective directions for investing financial resources, operations with securities, timely attraction of borrowed funds.
The analysis of the coefficients of the enterprise allows us to draw the following conclusions: the enterprise depends on external investors, is unable to maintain the level of its own working capital and replenish working capital from its own sources. The company is financially unstable. Undoubtedly, the company needs to reduce the amount of receivables and payables, but also should not allow the growth of these indicators. The company should increase profits by increasing business activity and profitability of production and economic activities.
List of used literature
1. Bakanov M.I., Sheremet A.D. Theory of economic analysis: Textbook. 3rd ed., revised. - M.: Finance and statistics, 1995.
2. Balabanov I.T. Fundamentals of financial management / Textbook. - M.: Finance and statistics, 1997. - 478 p.
3. Ermolovich L.L., Sivchik L.G., Tolkach G.V., Shchitnikova I.V. Analysis of the economic activity of the enterprise: Textbook / Under the total. Ed. L.L. Ermolovich. - Minsk: Interpressservice; Ecoperspective, 2005. - p.576.
4. Jacques Richard. Audit and analysis of economic activity of the enterprise. – M.: UNITI, 1997.
5. Kovalev V.V. Financial analysis: Money management. Choice of investments. Reporting analysis. - M.: Finance and statistics, 1996. - 432 p.
6. Kovalev, L.T. Financial position of the enterprise: express research // New economic newspaper. -2005. - No. 21. - With. 21-24.
7. Kozharsky, V.V. Analysis of the balance sheet // Planning and economic department. - 2005. - No. 3-5. - With. 23-26.
8. Kozharsky, V.V. Calculation of financial stability ratios // Planning and economic department. - 2005.- №2. - With. 46-48.
9. Kreinina M.N. The financial condition of the enterprise. Assessment methods. - M.: ICC "DIS", 1997. - 224 p.
10. Lapusta, M.G. Finance of organizations (enterprises): Textbook / M.G. Lapusta, T.Yu. Mazurin, L.G. Skamay. - M.: INFRA-M, 2007. -575s.
11. Lupey, N.A., Finance of organizations (enterprises): Textbook / N.A. Loupey. - M .: ITC "Dashkov and K", 2008. - 258 p.
12. Mazurina, T .: Enterprise Finance / T. Mazurina, M. Lapusta. - M.: ALFA-PRESS, 2009
13. Negashev E. V. Analysis of the finances of the enterprise in the conditions of the market: textbook. allowance. - M .: Higher. school, 1997. - 192 p.: ill.
14. Nechaev E.V. Analysis of the finances of the enterprise in the conditions of the market: Textbook. - M .: Higher. school, 1997. - 192 p.: ill
15. Ostapenko, V.V. Enterprise finance: study guide / V.V. Ostapenko. - M.: Omega-L, 2008. - 302 p.
16. Fundamentals of entrepreneurial activity (Economic theory. Marketing. Financial Marketing) / Pod. ed. V.M. Vlasova. - M.: Finance and statistics, 1994. - 469 p.
17. Pavlova LN Financial management. Management of the company's cash flow. - M .: Banks and exchanges, UNITI, 1995
18. Rodionova V. N., Fedotova N. A. Financial stability of the enterprise in terms of inflation. - M .: Perspective, 1995.- 98s.
19. Savitskaya, G.V. Analysis of the economic activity of the enterprise: Textbook for universities / GV Savitskaya. - 7th ed., Rev. - Minsk: New knowledge, 2004. - 704 p.
20. Savitskaya, G.V. Economic Analysis: Textbook / G.V. Savitskaya. - 11th ed., Rev. - M .: New knowledge, 2006. - p.640-660
21. Strazhev, V.I. Analysis of economic activity in industry. - Textbook / Under the general. ed. IN AND. Strazhev. - Mn.: Vysh. school, 2006. - 480 p.
22. Sokolov Ya.V. Accounting: from the origins to the present day: Proc. allowance for universities. – M.: Audit, UNITI, 2006.
23. Stone D., Hitching K. Accounting and financial analysis: TRANS. from English. - St. Petersburg: AOZT "Literature Plus", 2004.
24. Theory and practice of anti-crisis management: Textbook for universities / Ed. Belyaeva S.G. and Koshkin V.I. - M.: Law and Law, UNITI, 2006. - 469 p.
25. Theory of analysis of economic activity / Ed. V. V. Osmolovsky. - Minsk: Higher School, 2000.
26. Thompson A., Formby D. Economics of the firm / Per. from English. - M .: CJSC "Publishing house BINOM", 1998. - 544 p.: ill
27. Fashchevsky V.N. On the solvency of the enterprise // Financier. - 2000. - No. 3. - p.34
28.Finance of enterprises / Ed. E. I. Borodina. - M .: Banks and exchanges, UNITI, 1995
29. Financial management: theory and practice: Textbook / Ed. E.S. Stolpova. - 3rd ed., revised. and additional - M .: Publishing house "Perspective", 1998. - 656 p.
30.Finance of organizations (enterprises): a textbook for universities / N.V. Kolchin [and others]; ed. Prof. N.V. Kolchina. - M.: UNITI, 2007, -382s.
31. Finance of organizations: textbook / V.F. Kokolina [and others] / - M: Publishing House "MAGISTER-PRESS", 2007.-254s
32. Fridman, A.M., Finance of organizations (enterprises) / A.M. Friedman. - M .: ITC "Dashkov and K", 2009-488s.
33. Sheremet, A.D. Enterprise finance: management and analysis: textbook / A.D. Sheremet, A.F. Ionova. – M.: INFRA-M, 2006.-479s.
34. Shulyak, P.N. Enterprise finance: textbook / P, N, Shulyak. - M .: ITK "Dashkov and K", 2009-712s.
35. Shcherbina, A.V. Finances of organizations / A.V. Shcherbina. - Rostov / D: Phoenix, 2005. - 506s.
The finances of enterprises (firms) function within the framework of the financial system of the state and form the basis of the entire financial system, as they serve the sphere of material production, where the gross national product and national income are created - a source of financial resources for other parts of the financial system.
The finances of enterprises are monetary relations associated with the formation and distribution of financial resources, which are formed from such sources as own and equivalent funds, funds mobilized in the financial market, and funds received in the order of redistribution (insurance compensation, budget allocations, funds of extra-budgetary funds of an economic nature, etc.).
The finances of an enterprise are economic monetary relations that arise in the process of financial and economic activities of an enterprise regarding the formation of fixed and working capital, the accumulation, distribution and use of funds, as well as control over this process.
Enterprise finance plays an important role in ensuring the effective economic and social development of the country. This role is manifested in the following:
the financial resources concentrated by the state and used by it to finance various social needs are mainly formed at the expense of the finances of enterprises (firms);
enterprise finances form the financial basis for ensuring the continuity of the production process, aimed at meeting the demand for goods and services;
part of the financial resources formed by enterprises (firms) is directed to consumption purposes, thus, with the help of the finances of firms, the social tasks of the development of society are decentralized;
enterprise finances can serve as the main instrument of state regulation of the 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 for accumulation;
enterprise finances are used to regulate sectoral proportions in a market economy, contribute to the creation of new industries and modern technologies;
Enterprise finance allows the use of household cash savings by providing an opportunity to invest them in profitable financial instruments (securities) issued by individual enterprises.
The finances of an organization as an economic category are manifested in the functions they perform.
In modern economic literature, the following functions of enterprise finance are distinguished:
providing;
distribution;
control.
The supporting function consists in the systematic formation of the necessary amount of funds from various alternative sources to ensure the current economic and financial activities of the enterprise and the implementation of the strategic goals of its development. The prerequisite for distribution and its beginning is the accumulation of capital - the formation of resources that form the company's cash funds.
The distributive function is closely connected with the providing one and manifests itself through the distribution and redistribution of the total amount of generated financial resources.
The financial resources of the enterprise are subject to distribution in order to fulfill monetary obligations to the budget, creditors, counterparties. The result of the redistribution is the formation and use of targeted funds of funds, maintaining an effective capital structure.
The control function is implemented through the implementation of financial control over the results of the production and financial activities of the enterprise, as well as over the process of formation, distribution and use of financial resources in accordance with current and operational plans. The control function is implemented in the following areas:
control over the receipt of proceeds from the sale of products and services;
control over the level of self-financing, profitability and profitability;
control over the correct and timely transfer of funds to monetary funds for all established sources of financing;
control over purposeful and efficient use of financial resources and others.
The organization of the finances of an enterprise (firm) is based on certain principles. The principle of self-sufficiency and self-financing. Self-sufficiency implies that the funds that ensure the functioning of the enterprise must pay off - to generate income that corresponds to the minimum possible level of profitability.
Self-financing means full payback of costs for the production and sale of products (services), investment in the development of production at the expense of own funds and, if necessary, at the expense of bank and commercial loans. In countries with developed market economies, the level of self-financing is considered high if the share of own funds of an entrepreneurial firm reaches 70% or more.
The principle of economic independence lies in the independent determination of development prospects, planning their activities; in ensuring industrial and social development; in independent determination of the direction of investing funds in order to make a profit, and more. In a market economy, the economic independence of enterprises has expanded, but certain areas of economic activity are determined and regulated by the state (for example, regulation of the economic activity of natural monopolists, etc.).
The principle of liability means the presence of a certain system of responsibility of enterprises for the conduct and results of economic activity. In accordance with the current Russian legislation (Federal Law of the Russian Federation “On Insolvency (Bankruptcy)”, 2002), firms that violate contractual obligations, settlement and tax discipline are held liable and bankruptcy proceedings may be initiated by an arbitration court at the initiative of creditors.
Interest in the results of activities is inherent in the employees of the enterprise, management and the state. This principle is implemented through the development of forms, systems and amounts of remuneration, incentive and compensatory payments, social guarantees for the team of employees. The interest of the state is manifested in the fact that an enterprise is a potential taxpayer, which, through the creation of a system of favorable operating conditions, is provided with rhythmic and efficient activities. The financial mechanism plays an important role here.
The principle of exercising control over the financial and economic activities of the company is implemented in the process of performing the control function by finances.
More on the topic 7.1. Essence, functions and principles of organization of enterprise finance:
- 12.1 Goals and functions of enterprises in the market. The essence and functions of enterprise finance, the principles of their organization. Types of financial relations of enterprises Finance of enterprises
Enterprise Finance - these are economic, monetary relations arising as a result of the movement of money and the cash flows formed on this basis, associated with the functioning of the monetary funds created at enterprises.
The finances of enterprises are the basis of the financial system of the state, since enterprises are the main link in the national economic complex. The state of the enterprise's finances has an impact on the provision of national and regional monetary funds with financial resources. The dependence here is direct: the stronger and more stable the financial position of enterprises, the more secure national and regional monetary funds, the more fully social, cultural needs, etc.
Without the normal functioning of the financial mechanism, the market economy is not able to work. The experience of recent years of economic reforms in Russia has confirmed this position. That is why in a market economy it is necessary to learn how to combine the independence of enterprises and regions with state regulation of the economy and finance.
Enterprise finance performs three functions:
- o providing,
- o distribution;
- o control.
Providing function Finance of enterprises assumes that the enterprise must be fully provided in the optimal amount with the necessary funds, subject to a very important principle: all expenses must be covered by their own income. Temporary additional need for funds is covered by a loan and other borrowed sources. At the same time, optimization of sources of funds is one of the ways to obtain the highest financial result.
distribution function enterprise finance is closely related to providing. Distribution relations also seriously affect the final results. The distributed proceeds from the sale of products are partly directed to reimburse the costs of the enterprise (consumed means of production and wages), and the other part of it represents profit. The profit is distributed between the enterprise and the budget. The financial mechanism of these relations includes:
- o the dependence of wages on the usefulness of the products produced and the receipt of payments for it;
- o a reasonable distribution of profits between the enterprise, trade and banks, in which a large share should go to the manufacturer;
- o the objective reality of the norms for the distribution of profits between enterprises and budgets of various levels, as well as extra-budgetary funds, assuming long-term and stability;
- o validity of deductions for savings (development of production) and consumption;
- o sufficiency of funds for social needs, research and development, training and other purposes.
control function finance of enterprises is associated with the use of various incentives and sanctions, as well as relevant indicators. If an enterprise pays off the budget, banks, suppliers in a timely manner, it thereby improves its final results, increases production efficiency and the use of funds. Otherwise, it is forced to pay fines, penalties, forfeits, a tense financial situation arises, and the final results worsen. One form of financial control is the use of a number of financial indicators. The main one is the stable availability of funds from the enterprise. It is in this that the interaction of the control function of finance with the first two is manifested; this is a manifestation of financial control by the ruble. Other financial indicators include: debt to suppliers, bank, budget, employees, availability of working capital from relevant sources, losses, liquidity, solvency, etc.
Thus, the control function of finance makes it possible to identify the results of the work of enterprises, the shortcomings of their activities, and then take the necessary measures to improve the situation. The control function of finance at the national level is manifested in the organization of cash flows, in the timely formation of centralized monetary funds and their most rational and economical use, in the creation of certain conditions for the sphere of material production.
In the conditions of the modern economy, finance performs, within the framework of the control function, a rather important sub-function related to countering the legalization (laundering) of proceeds from crime (Federal Law No. 115-FZ dated 07.08. and financing of terrorism). Financial control in this respect is more of an administrative rather than an economic nature. The need to strengthen it was caused by a significant increase in these phenomena.
Financial management of enterprises is carried out in three directions:
- 1) implementation of the goals of the financial strategy:
- - liquidity and solvency of the enterprise,
- - the profitability and profitability of its activities,
- - material security of workers and owners, and in the conditions of a socially oriented economy - their social security;
- 2) management of financial relations, cash funds and cash flows;
- 3) management of sources of funds, i.e. liabilities of the balance sheet, and directions for the use of funds, i.e. assets of the balance sheet or property of the enterprise.
In accordance with the Civil Code of the Russian Federation, entrepreneurial activities can be carried out by citizens without forming a legal entity from the moment of state registration as an individual entrepreneur and legal entities. A legal entity is an organization that owns, manages or manages separate property and is liable for its obligations with this property. Legal entities can be commercial and non-commercial organizations.
Commercial organizations carry out their activities in the form of economic partnerships and companies, production cooperatives, state and municipal unitary enterprises. One of the main goals of the activities of commercial organizations is to make a profit.
Non-profit organizations are created to achieve a specific goal and can carry out entrepreneurial activities only to achieve it.
The content of the finances of these two groups of organizations has its own specifics.
The finances of organizations (enterprises), being the main link in the financial system, are distributive in nature and cover the processes of creating, distributing and using GDP and ND in value terms. Ultimately, financial resources are created in this link of the financial system, which are subsequently distributed and used for their own development and to meet the needs of the economic and social development of society.
Modern commercial organizations (enterprises) operate in constantly changing market conditions of management, with fierce competition. The main goal of their entrepreneurial activity is not only the maximum profit, but also the preservation and increase of their own capital, ensuring the stability of the business.
In the course of entrepreneurial activity of commercial organizations (enterprises), certain financial relations arise related to the organization of production and the sale of
duction, provision of services and performance of work, formation of own financial resources and attraction of external sources of financing, their distribution and use, fulfillment of obligations to the country's budget system.
The material basis of financial relations is money. Financial relations are a part of monetary relations that arise only with real cash flow and are accompanied by the formation and use of equity capital, centralized and decentralized cash funds.
Finances of commercial organizations and enterprises are financial or monetary relations that arise in the course of entrepreneurial activity in the process of forming equity capital, targeted centralized and decentralized funds of funds, their distribution and use.
According to its economic content, the entire set of financial relations can be grouped into the following areas:
between the founders at the time of the creation of the organization (enterprise) associated with the formation of equity capital and in its composition of the authorized (stock, share) capital. Specific methods of formation of the authorized capital depend on the organizational and legal form of management. In turn, the authorized capital is the initial source of the formation of production assets, the acquisition of intangible assets;
between individual organizations (enterprises) associated with the production and sale of products, the emergence of newly created value. These include financial relations between the supplier and the buyer of raw materials, materials, finished products, etc., relations with construction organizations in the implementation of investment activities, with transport organizations in the transportation of goods, with communications enterprises, customs, foreign firms, etc. These relations are basic, since the final financial result of commercial activity largely depends on their effective organization;
between the organization (enterprise) and its subdivisions (branches, workshops, departments, teams) regarding the financing of expenses, distribution and use of profits, working capital. This group of relations influences the organization and rhythm of production;
between an organization (enterprise) and its employees in the distribution and use of income, the issuance and placement of shares and bonds in a joint-stock company, the payment of interest on bonds and dividends on shares, the recovery of fines and compensation for material damage caused, the withholding of taxes from individuals. The efficiency of the use of labor resources depends on the organization of this group of relations;
between an organization (enterprise) and a parent organization, within financial and industrial groups, within a holding, with unions and associations of which this organization is a member. Financial relations arise during the formation, distribution and use of centralized trust funds and reserves for financing targeted industry programs, conducting marketing research, research work, exhibitions, providing financial assistance on a repayable basis for the implementation of investment projects and replenishment of working capital. This group of relations is associated, as a rule, with intra-industry redistribution of funds, optimization of their use and is aimed at supporting and developing enterprises;
between commercial organizations (enterprises) related to the issue and placement of securities, mutual lending, equity participation in the creation of joint ventures. The possibility of attracting additional sources of financing for entrepreneurial activity depends on the organization of these relations;
between commercial organizations (enterprises) and the financial system of the state - when paying taxes and making other payments to the budget, forming off-budget trust funds, providing tax benefits, applying penalties, financing from the budget;
between commercial organizations (enterprises) and the banking system - in the process of keeping money in commercial banks, obtaining and repaying loans, paying interest on a bank loan, buying and selling foreign currency, and providing other banking services;
between commercial organizations (enterprises) and insurance companies and organizations - when insuring property, certain categories of employees, commercial and entrepreneurial risks;
between commercial organizations (enterprises) and investment institutions - in the course of investment placement, privatization, etc.
Each of these groups has its own characteristics and scope. However, all of them are bilateral in nature, their material basis is the movement of funds. The movement of funds is accompanied by the formation of the authorized capital of the enterprise, the circulation of the enterprise's funds begins and ends, the formation and use of cash funds and reserves.
The finances of commercial organizations (enterprises) have the same functions as national finances: distribution and control. However, their implementation is carried out at the microeconomic level. Both functions are closely related. Through the distribution function, the formation of the initial (authorized) capital, which is formed at the expense of the contributions of the founders, its advance in production, the reproduction and increase of capital, the attraction of external sources, the creation of basic proportions in the distribution of income and financial resources, ensuring the optimal combination of interests of individual producers, business entities and the state as a whole. The distribution function of finance is associated with the formation of monetary funds and reserves of commercial organizations (enterprises) through the distribution and redistribution of incoming income, the formation of profits.
Fund (French fond from lat. fondues - foundation) of funds - funds for specific purposes. Decentralized funds of funds are formed in commercial organizations. These include: authorized capital or authorized fund, reserve fund, additional capital, equity, accumulation fund, consumption fund, currency fund, etc.
Distribution relations affect the interests of both society as a whole and individual business entities, their founders, shareholders, employees, credit and insurance institutions.
Violation of the continuous circulation of funds, an unjustified increase in the costs of production and sale of products, performance of work, provision of services reduces the income of an economic entity and society as a whole, which indicates shortcomings in the organization of the production process, insufficient impact of distribution relations on production efficiency. An analysis of financial indicators makes it possible to evaluate the results of economic activity, the existing system of distribution relations in a commercial organization (enterprise) and, if necessary, apply measures of financial impact in order to ensure its financial stability. This task is facilitated by the control function of the finances of commercial organizations (enterprises).
The objective basis of the control function is the cost accounting for the production and sale of products, the performance of work and the provision of services, the process of generating income and cash funds. Finance as distributive relations provide sources of funding for the reproduction process (distribution function) and thus link together all phases of the reproduction process: production, exchange, consumption. However, it is impossible to distribute and use more income than was created in the process of production, performance of work and provision of services and received after their sale. The amount of income received by an economic entity determines the possibilities for its further development. The competitiveness of the enterprise, its financial stability depend on the efficiency of production, cost reduction, rational use of financial resources.
Financial control over the activities of an economic entity is carried out by:
directly an economic entity through a comprehensive analysis of financial indicators, operational control over the progress of the implementation of current financial plans, obligations to suppliers of inventory items, customers and consumers of products, the state, banks and other counterparties;
shareholders and owners of a controlling stake by controlling the effective investment of funds, making profits and paying dividends;
the Ministry of Taxes and Dues of the Russian Federation represented by the tax authorities, which monitor the timeliness and completeness of the payment of taxes and other obligatory payments to the budget;
Department of State Financial Control and Audit of the Ministry of Finance of the Russian Federation, which controls the financial and economic activities of enterprises and organizations using budget funds;
commercial banks when issuing and repaying loans, providing other banking services;
independent audit firms during audits.
The positive financial result of the economic activity of commercial organizations and enterprises indicates the effectiveness of the applied forms and methods of managing financial resources. Conversely, a negative result or its absence indicates shortcomings in the management of financial resources, organization of production and the possibility of bankruptcy of a commercial organization (enterprise).
The implementation of the control function of finance is carried out on the basis of normative and legislative acts, planned and reporting estimates and financial plans.