Physical and financial resources. Financial resources of an enterprise or organization. Analysis of the financial activities of the enterprise
General concept financial resources
Cash income accumulated by their owners for subsequent spending, as well as funds raised as loans, constitute financial resources, which are divided into their own and borrowed (credit). For budgets of all levels, financial resources are mobilized income and attracted loans. For enterprises, this is equity capital, profit, loans received and securities placed on the market. For workers, the financial resource is income in the form of wages, as well as loans (for example, bank, consumer and pawnshop).
Own financial resources are at the complete disposal of their owner, while credit resources are attracted for a period of time and are subject to repayment along with interest payments for their use.
Sources of credit resources are temporarily free cash enterprises, the population, and in some cases the state. The purchase and sale of these resources is concentrated in the financial market. It consists of two parts: the loan capital market and the securities market. Its main function is to provide business entities with additional funds at a certain percentage.
Principles of organizing enterprise finances. Cash flow in the enterprise
The predominant part of the financial resources of the general economic financial system is formed at enterprises. Since up to 80% of the budget revenue base is formed from taxes, and tax revenues are dominated by payments from enterprises, enterprise finances form the national financial system.
The organization of corporate finance is based on the following principles:
- independence in the field of financial and economic activity;
- self-financing;
- interest in work results;
- responsibility for these results;
- formation of financial reserves;
- division of funds into own and borrowed;
- priority fulfillment of obligations to the budget;
- financial control over the activities of enterprises.
The cash flow cycle of an enterprise can be represented as follows:
Figure 1. Enterprise cash flow cycle
Cash flow in an enterprise is a continuous process. For each direction of use of funds there must be a corresponding source. A business's assets are its net uses of cash, while its liabilities and equity are its net sources. For an operating enterprise there is no starting and ending point for the movement of funds. Cash levels fluctuate depending on production schedule, sales volume, accounts receivable collections, capital expenditures and financing.
In the overall cash flow of an enterprise, the following relationships can be distinguished:
- formation and use of target funds for intra-economic purposes (statutory fund, production development fund, incentive funds, etc.);
- arising from participation in other enterprises (making share contributions, participating in the distribution of profits from joint activities And so on);
- with employees of the enterprise;
- with product buyers;
- with insurance organizations;
- with the banking system;
- with the state;
- with higher management structures.
Financial resources of the enterprise and their structure
Definition 1
Financial resources enterprises is its fixed and working capital.
Formation and replenishment of financial resources(fixed and working capital) - important financial problem. The primary formation of these capitals occurs at the time of establishment of the enterprise, when it is formed authorized capital.
Definition 2
Authorized (share) capital- property of the enterprise created through the contributions of the founders.
Definition 3
Financial resources- these are the funds remaining at the disposal of the enterprise after the implementation of current costs to cover material costs and wages.
The main source of financial resources is profit.
Sources of formation of the enterprise's financial resources: profit; proceeds from the sale of disposed property; depreciation; increase in sustainable liabilities; loans; targeted revenues; share contributions. In addition, an enterprise can mobilize financial resources in various sectors of the financial market: sale of shares, bonds; dividends, interest; loans; income from other financial transactions; income from the payment of insurance premiums, etc. (Fig. 2).
Figure 2. Grouping of enterprise financial resources
Significant financial resources of an enterprise can be mobilized in the financial market.
Definition 4
The main direction of use of funds- investing in expanded reproduction.
The use of financial resources is carried out in the following areas:
- Investing in capital investments to expand production;
- Investing in securities;
- Payments to the budget, banking system, contributions to extra-budgetary funds;
- Formation of monetary funds and reserves.
Enterprise financial management
The formation and use of financial resources is impossible without a financial management system for enterprises.
Definition 5
Financial management (financial management)- this is an activity aimed at achieving the strategic and tactical goals of the functioning of a given enterprise.
Enterprise financial management includes:
- organization and management of enterprise relations in financial sector with other enterprises, banks, insurance companies, budgets of all levels, as well as financial relations within the enterprise;
- formation of financial resources and their optimization;
- placement of capital and management of the process of its functioning;
- analysis and management of cash flows in the enterprise.
Main functions of a financial manager:
- financial planning, enterprise budgeting, formation pricing policy, sales forecasting;
- formation of the capital structure and calculation of its price;
- capital management (working with securities; control and regulation of monetary transactions; investment analysis; management of fixed and working capital);
- financial risk analysis;
- property protection;
- assessment and consultation.
Finance is part of economic relations in society, but in practice we are not dealing with abstract relationships, but with real money. The distribution and redistribution of value with the help of finance is accompanied by the movement of funds in the form of income, receipts and savings, which together constitute financial resources, that are material carriers of financial relations.
While the term “financial resources” is widely used, its interpretation varies. In Russia, it was first used in the preparation of the country's first five-year plan, which included a balance of financial resources.
In a more general sense, “resource” in dictionaries is considered as a reserve that serves as a source of satisfying needs and forming funds. Since finance is an economic relationship mediated by money, it is obvious that financial resources mean only those resources that have a monetary form, as opposed to material, labor, natural and other resources. Thus, we can draw the first conclusion that financial resources exist only in in cash.
However, financial resources are not the entire amount of money used by public authorities and bodies local government, as well as business entities. In addition to financial resources, credit resources, personal income of the population, etc. also function in monetary form. Therefore, it is important to identify such characteristics of financial resources that will allow them to be isolated from the total amount of funds.
In any society, financial resources do not exist on their own; they always have an owner or a person to whom the owner has delegated the rights to dispose of them. Financial resources cannot be outside of property relations. And only that part of the funds that is owned or disposed of by business entities or state authorities and local governments and serves the process of social reproduction, refers to financial resources.
Their affiliation with a specific business entity or state and local government bodies makes it possible to separate them from the part of the population’s monetary income and savings that is not involved in the process of social reproduction.
However, not all funds of business entities can be classified as financial resources, but only those that mediate the processes of production of goods, provision of various types of services, or are used to finance the functions of state authorities and local self-government.
This leads to the following sign of financial resources - they are always used for the purposes of expanded reproduction, social needs, material incentives for workers, and satisfaction of other social needs.
Thus, under financial resources means monetary income, savings and receipts owned or disposed of by business entities or state and local government bodies and used by them for the purposes of expanded reproduction, social needs, material incentives for workers, and satisfaction of other social needs 1 .
The sources of financial resources formation are usually considered to be the value of the gross domestic product, part of the national wealth and receipts from foreign economic activity.
Part of the national wealth is involved in economic turnover in the form of carryover balances of budget funds; funds from the sale of part of the country's gold reserves; proceeds from the sale of excess, confiscated and ownerless property, income from privatization, etc. From foreign economic activity financial resources are received in the form of income from foreign trade operations, external government borrowings, foreign investment and so on.
Types of financial resources- these are those specific forms of income, receipts and savings that are formed by business entities and government entities as a result of financial distribution. They are: depreciation deductions, organizational profit, tax revenues, insurance payments, etc..
The composition of the sources of financial resources of business entities will be influenced by the sphere of activity (material production or non-production sphere), the method of farming, i.e. whether the organization pursues making a profit as the main goal of its activities (commercial organizations) or does not have such a goal and does not distribute the profit received among participants (non-profit organizations), organizational and legal form, industry characteristics, etc.
Financial resources of a commercial organization- these are monetary incomes, savings and receipts owned or disposed of by an organization and intended to fulfill financial obligations, ensure reproduction costs, social needs and material incentives for workers.
TO the main sources of formation of financial resources of a commercial organization relate:
revenue from sales of products, works and services;
revenue from other sales (for example, disposed of fixed assets, inventories and so on.);
non-operating income (fines received, dividends and interest on securities, etc.);
budget resources;
funds received through the redistribution of financial resources within vertically integrated structures and industries.
Types of financial resources of a commercial organization there will be profits from the sale of goods (works or services), from the sale of property, the balance of income and expenses from non-sales activities, depreciation charges, reserve and similar funds formed from the profits of previous years.
Directions for using financial resources of a commercial organization are: payments to budgets of various levels and extra-budgetary funds, payment of interest for using a loan, repayment of loans, insurance payments, financing of capital investments, increase working capital, financing research and development work, fulfilling obligations to the owners of a commercial organization (for example, paying dividends), material incentives for employees of the enterprise, financing their social needs, charitable purposes, sponsorship, etc.
Financial resources non-profit organization - these are cash incomes, receipts and savings used to carry out and expand the authorized activities of the organization. The organizational and legal form and type of activity of a non-profit organization will influence the composition of sources of financial resources, as well as the mechanism for their formation and use.
TO main sources of financial resources for non-profit organizations relate:
founders' and membership fees;
income from business and other income-generating activities;
budget resources;
free transfers of individuals and legal entities;
other sources.
Types of financial resources of non-profit organizations are budget funds, gratuitous transfers of legal and individuals, including grants, profits, depreciation charges (except budgetary institutions), reserve and similar funds (except for budgetary institutions), etc.
Since 2007 in Russian Federation part of the funds that non-profit organizations receive in the form of gratuitous transfers from individuals and legal entities (donations) takes the form of endowment capital 2 .
The financial resources of a non-profit organization are used to realize the main purpose of its creation. These may be expenses related to the remuneration of employees, the operation of premises, the purchase of equipment, payments to budgets and state extra-budgetary funds, capital investments, major repairs of buildings and structures, etc.
In addition to business entities operating as a legal entity, entrepreneurial activities can also be carried out by individual entrepreneurs, who also generate financial resources.
Sources of financial resources for individual entrepreneurs are personal savings and income received as a result of economic activities. In addition, entrepreneurs can attract borrowed funds to carry out their activities.
Financial resources individual entrepreneurs are used for business expansion, payments to the budget and state extra-budgetary funds, labor costs employees, charitable contributions and donations, etc.
If entrepreneurial activity terminates, all income received is directed to the personal consumption of the entrepreneur.
Sources of financial resources at the disposal of state authorities and local governments, act as gross domestic product, part of the value of national wealth and receipts from foreign economic activity.
Gross domestic product is the main source of formation of state and municipal financial resources. But sometimes, for example, during periods of economic crisis or the onset of emergency circumstances (revolutions, wars, major natural disasters, etc.), previously accumulated national wealth can act as a source of state and municipal financial resources.
The financial resources of state authorities and local self-government are:
tax revenues (corporate income tax, personal income tax, unified social tax, etc.);
non-tax income (dividends on shares owned by state and municipal property, income from the delivery of state and municipal property for rent, interest received from the provision of budget loans
(budget loans), etc.);
gratuitous transfers (from budgets of other levels, state extra-budgetary funds, etc.);
other income.
Use of financial resources at the disposal of state authorities and local governments, is directly related to the functions of the state: economic, social, managerial, strengthening defense capability; through financial resources, the important needs of society in the field of economic development, financing are met social sphere, implementation of state and municipal government, strengthening the country's defense capability, etc.
The formation and use of financial resources is carried out in stock or non-stock form. The stock form is predetermined by the needs of state authorities and local governments that need financial resources to ensure their functioning, and by some of the needs of business entities engaged in expanded reproduction. When forming and using their financial resources, many funds are used intended purpose, and narrowly targeted.
Financial funds have the following features:
this is a separate part, separated from the total amount of funds;
as a result of isolation, the monetary fund begins to function independently, and this independence is relative, there is a constant replenishment and use of funds;
is always created to finance some purpose, and the goals can be of different orders, broad and narrow;
has legal support that regulates the order of its formation and use.
The fund form of education and use of financial resources has advantages over the non-fund form.
The formation of separately functioning financial funds with clear regulation of the procedure for their formation and use ensures the concentration of financial resources to perform urgent tasks, allows them to be more effectively managed and facilitates control over their formation and use. However, if previously the stock form was the main one, then in market conditions the financial resources of state authorities and local self-government are mainly formed and used in the stock form. Such funds include budgets of relevant levels and extra-budgetary funds. The form of use of financial resources of business entities is currently less regulated by the state. Procedure for using financial resources commercial organizations determined by their constituent documents, and therefore a combination of stock and non-stock forms is possible here. Part of the resources of business entities can be directed to the formation of funds for special purposes (for example, economic incentives, reserve funds). The use of financial resources to fulfill financial obligations to budgets of various levels, state extra-budgetary funds, banks, insurance organizations, and the payment of penalties is carried out in non-fund form.
1 See: Finance / Ed. V.M. Rodionova. - P. 10, 35.
2 See article 2 Federal Law dated December 30, 2006 No. 275-FZ “On the procedure for the formation and use of endowment capital of non-profit organizations.”
(Materials are based on: A.G. Gryaznova. E.V. Markina Finance. Textbook. 2nd ed. - M.: Finance and Statistics, 2012)
ALL-RUSSIAN CORRESPONDENCE INSTITUTE OF FINANCIAL AND ECONOMIC
DEPARTMENT OF FINANCE AND CREDIT
TEST
in the discipline "Finance"
Lipetsk - 2008.
1.Financial resources and their composition.................................................... ...........................3
2. State budget, economic content and significance............................6
List of used literature......................................................... ....................eleven
1. Financial resources and their composition
Financial resources - This a set of funds of funds at the disposal of business entities, the state, households, i.e. This is money that serves financial transactions. They are formed in the process of material production, where new value is created and GDP and income generation arise. Therefore, the volume of financial resources depends on the size of GDP and income tax.
The subjects of financial resources are:
1) households;
2) enterprises, associations, companies, etc., i.e. legal entities owning decentralized financial resources;
3) the state in the form of various budgets and extra-budgetary funds.
The relationship between them is determined by market relations. The more independence individuals and legal entities have, the greater their ability to generate financial resources. In turn, this ensures an increase in the flow of financial resources to the state. The optimal relationship between them is determined by the state on the basis of scientifically based calculations embedded in the socio-economic forecasts of the country.
The objects of financial resources are financial relations, as a result of which target funds are formed. They are concentrated in two blocks:
1) decentralized financial resources that are created on micro level. At enterprises, there is a process of isolating specific forms of primary income (profit, wages) from the gross income; there is a process of capital accumulation in the form of a depreciation fund, proceeds from disposed property, etc. household there is also a separation of specific target funds (for consumption, recreation, durable goods);
2) centralized financial resources created on macro level, which include income from budgets of all levels and income from extra-budgetary funds.
Financial resources include :
1) own funds:
at the level of enterprises and households - profit, wages, household income;
at the state level - income from state-owned enterprises, privatization, as well as from foreign economic activity;
2) mobilized in the market:
at the level of enterprises and households – sale and purchase of securities, bank loan;
at the state level - issue of securities and money, state credit;
3) funds received through redistribution:
at the level of enterprises and households - interest and dividends on securities issued by other owners;
at the state level - mandatory payments (taxes, fees, duties).
Finance and financial resources are not identical concepts. Financial resources do not define the essence of finance, do not reveal their internal content and social purpose.
Financial resources, their formation and use are reflected in the consolidated financial balance sheet of the Russian Federation.
Consolidated financial balance of the Russian Federation includes financial resources from three sources:
1) resources used by the enterprises themselves (profit, depreciation);
2) funds accumulated by the budget system;
3) funds from extra-budgetary funds, primarily social ones.
However, due to the lack of accurate statistical data, the consolidated financial balance does not include data on the income and expenses of an important subject of financial resources - the household
Behind last years The importance of profit and depreciation has increased in the sources of financing expanded reproduction in enterprises, especially depreciation charges, since fixed assets are revalued annually on January 1st.
At the same time, there is a process of centralization of financial resources in the budget system and in extra-budgetary social funds. Nowadays their share in the consolidated budget accounts for approximately 50%.
2. State budget, economic content and significance
State budget - this is the balance of monetary income and expenditure of the state for a certain period of time (usually at the end of the calendar year).
Budget formation is directly related to the development of national income and its redistribution. The main financial methods of redistribution of national income are:
formation and use of cash savings (profits, value added tax, payments to social extra-budgetary funds);
organization of taxes;
financing sectors of the national economy;
formation and use of public consumption funds, insurance and reserve funds.
In all these processes, the budget plays a big role. With the help of the budget, state and territorial authorities receive financial resources for the maintenance of the administrative apparatus, the army, the implementation of social events, the implementation of economic tasks, i.e. to perform their assigned functions.
At the same time, the budget can be rightfully considered as an economic category that expresses certain economic relations. The state uses the budget as one of the main tools to support both its direct activities and as the most important instrument for carrying out economic and social policy.
The budget performs the following tasks :
1) redistribution of national income;
Distribution the budget function is manifested through the formation and use of centralized funds of funds at the levels of state and territorial government and management. In developed countries, from 30% to 50% of national income is redistributed through budgets of different levels. With the help of the budget, the state regulates the economic life of the country, economic relations, directing budget funds to support or develop industries and regions. By regulating economic relations in this way, the state is able to purposefully accelerate or restrain the pace of production, the growth of capital and private savings, and change the structure of demand and consumption.
Redistribution national income through the budget has two interconnected, simultaneous and continuous stages:
generation of budget revenues;
use of budget funds (budget expenses).
2) government regulation and economic stimulation ;
In the course of generating budget revenues and using budget funds, problems are solved government regulation economic and social processes in the country.
Budget revenues- these are economic relations between the state, on the one hand, and business entities and citizens, on the other. At the same time, budget revenues are funds at the disposal of state authorities and local governments.
In the process of generating budget revenues, a mandatory withdrawal of part of the national income occurs in favor of the state. On this basis, financial relations between the state and enterprises and the population arise.
The budget is actively involved in the distribution of profits of enterprises and business organizations. There is a well-known relationship between the forms and amount of withdrawal of part of the profits of enterprises into the budget and the latter’s interest in the results of their work. The interest of enterprises in better use of production resources, increasing the level of profitability and increasing profits depends on how perfect the forms of withdrawing part of the profit from the budget are.
Budget expenses- these are economic relations that arise between the state, on the one hand, organizations, institutions and citizens, on the other, during the use of centralized funds of funds.
By centralizing part of the financial resources in the budget, the state is able to provide funds for national needs - the accelerated development of progressive sectors of the national economy, the reproduction of a qualified workforce, the development of science and technology, and ensuring the country's defense capability.
3) financial support for the social sphere and implementation of the state’s social policy;
Through the budget, national income is redistributed across the territory, as well as from production into the non-production sphere, for which monetary funds are created at the expense of the budget to finance needs in the field of health care, education, culture, management, and defense.
Through budgets, through budget financing, financial resources are redistributed between sectors of the production sector in order to ensure their proportional development.
Using the budget as the main instrument for the redistribution of national income, the state directs funds primarily to those sectors of the national economy and those economic regions that require priority development at this stage, i.e. through the budget, interterritorial and intersectoral redistribution of national income occurs. Thus, the interests of the economic development of the country as a whole and the interests of proportional development of the regions are respected.
The state budget provides funding for scientific institutions carrying out fundamental scientific research, which is the basis for the development of applied science and the creation new technology. This ensures the development of the country's productive forces. All this makes it possible to coordinate the economic life of the state, rationally allocate monetary and material resources throughout the national economy, promote technical progress and strengthen the economic potential of the state.
Plays a major role in local economic and cultural construction budget regulation. With its help, inter-territorial distribution of funds is carried out on a large scale, providing the necessary sources of income to regional and local budgets, which are the financial base of territorial authorities, and thereby strengthens their connection with the entire economy of the country.
The role of the budget in the non-production sphere is great, where it is the main source of financing. It is through the state budget that funding for socio-cultural events, administration and defense comes. Funds mobilized through the state budget are of paramount importance for the formation and distribution of public consumption funds (over 86% of the total amount of public consumption funds). As is known, the main form of distribution of the national income consumption fund is distribution by labor. However, along with it, there are public consumption funds, which are intended to jointly satisfy the needs and support of disabled members of society, i.e. consumption in the field of public education, healthcare, social security, housing, etc.
All budget items are drawn up on the basis of the national economic plan, and all expenses are made in strict accordance with the plan. In turn, budget planning has an active impact on national economic planning.
4) control over the formation and use of centralized funds of funds.
And finally, budgets are fulfilled test a function that presupposes the possibility and obligation of state control over the receipt and use of budget funds.
Thus, the state budget, being the main financial plan of the state, gives authorities a real economic opportunity to exercise power. The budget reflects the size of the financial resources needed by the state and thereby determines the tax policy in the country. The budget fixes specific areas for spending funds, redistributing national income and gross domestic product, which allows it to act as an effective regulator of the economy and social processes in the country.
List of used literature
1. Finance: Textbook / Ed. L.A. Drobozina. – M.: UNITY, 1997.
2. Enterprise finance: Textbook / Ed. N.V. Kolchina. – M.: UNITY, 2001.
3. Finance. Money turnover. Credit: Textbook / Ed. prof. G.B. Pole. – M.: UNITY-DANA, 2nd ed. 2001.
4. Finance. Textbook / Ed. prof. V.M. Radionova. – M.: Finance
and statistics, 2002.
5. Budget process in the Russian Federation: Textbook / L.G. Baranova, O.V. Vrublevskaya, etc. - M.: “Perspective”: INFRA-M, 1998.
The concept of financial resources in our country was first introduced in 1928 when setting the objectives of the first five-year plan for the development of the national economy of the USSR (five-year plan from 1928 to 1932).
There is no single definition of this concept and this is due to the practical scope of this phrase. There is a wide variety of financial resources and their compositions due to this, various directions Economies give different definitions to this concept.
If we try to combine all these areas, we can come to the conclusion that financial resources are all the funds that an enterprise (organization, state) has to carry out its activities and maintain financial stability.
Properties of financial resources
In order to understand what financial resources are, it is necessary to establish the difference between the related concepts of “financial resources” and “enterprise capital”.
However, capital is part of the financial resources of an enterprise; in addition to equity capital (cash, authorized capital, etc.) and borrowed capital (loans, borrowings, etc.), financial reserves include raised funds and existing debt of counterparties, which is not managed to become part of the capital of the enterprise, but already constitutes a financial turnover.
As a result of the large list of components of financial reserves, they differ wide range properties, in comparison with others financial indicators activities. The main ones include:
- Close relationship between all components of financial reserves. No single component is capable of fulfilling all reserve capabilities, thus, an enterprise (institution) cannot fulfill all possible options development only with own capital, without attracting additional (borrowed) funds.
- Interchangeability of all resource components. Enables an enterprise (institution) to implement its plans, despite the lack of one or more types of financial opportunities. A temporary absence of net profit can replace a bank loan, and the absence of debt from counterparties can replace budgetary allocations, etc.
- Changing the form of components of financial reserves. All components of this type of enterprise resources are in constant circulation and tend to change their form and move from attracted to their own and back. At the same time, within accounting such a transition is not imposed, and within the framework of economic planning, financial reserve funds are constantly changing shape.
- Exposure to economic influence. Financial reserves are highly susceptible to economic fluctuations in volutes such as inflation and devaluation. This suggests that this type funds are presented, in most cases, in cash or its equivalent, even if the enterprise does not have cash, but there are loans and current receivables, which is the equivalent of cash.
Sources of financial resources
The main reason for the formation different types financial resources is a wide variety of sources of their formation. In order to give a full assessment of the variety of this economic concept, you need to understand how to obtain these resources.
- Own. In this case we're talking about about all types of capital of the enterprise (authorized, reserve, etc.), retained earnings. In addition, this source of financial resources can include the always present accounts payable.
- Attracted. Sources attracted include dividends and interest on securities and shares, additional contributions of founders to the authorized capital, for example, share contributions.
- Borrowed. This source is the most diverse, since every year new sources are created to receive funds, with the subsequent return of the amount in parts.
Borrowed financial resources include:
- credit;
- loan;
- budget allocations;
- etc.
However, the listed sources will not always be able to form necessary finances. And the reason for this is the variety of enterprises. Without delving into the extensive ownership structure in Russia, we can distinguish three main types of business entities:
- commercial enterprise;
- non-profit institution;
- state.
Thus, for commercial enterprise, whose goal is to make a profit, the main source of financial resources will be sales revenue.
For a non-profit institution that does not pursue the goal of increasing profitability and profit, the main source will be budgetary allocations.
The state, in turn, draws most of its financial resources from tax revenues, which for other types of subjects of the economic process are not a source of reserves, but an object for spending accumulated reserves.
Types of financial resources
In addition to the variety of sources of financial resources, there are several more criteria that divide them into several types.
Depending on the timing of attraction, financial resources can be:
- short-term (no more than 1 year);
- long-term (more than 1 year);
- unlimited
The first two types are characteristic of borrowed financial resources, such as a loan, and the third type is characteristic of own ones, such as authorized capital.
There is also a variety of financial resources, depending on the degree of availability:
- non-market;
- restricted resources;
- resources without restrictions.
Non-market resources include funds from non-profit institutions and the state. Resources with limited access have additional requirements for their acquisition and use. It is customary to refer to all possible credits and bank loans, as well as interest on securities, as resources without restrictions.
Stages of formation of financial resources
In order to form required amount financial resources, economists are developing a whole program to strengthen the economic position of an enterprise (institution) in the market and allocate financial reserves.
Such programs have a similar structure, which can be described in the form of main content points.
Formation of the required amount of financial resources
In order to carry out this stage of the program, it is necessary to conduct a detailed analysis of the enterprise’s activities, while calculating the required amount of financial resources that could meet all the goals of the enterprise. Such goals may be strengthening in the market, competing for consumers, or expanding the sales sector.
In addition, it is necessary to analyze the sources of financial resources with an assessment of their attractiveness for the organization. In other words, it is necessary to make a list of all possible sources of obtaining funds and select from them the source with the most attractive conditions for the enterprise.
As a result, at this stage, economists determine the conditional amount of the financial reserve and the source of its formation, own funds or borrowed funds.
Development of effective use of the received volume of financial resources
Having determined the volume of the financial reserve, it is necessary to develop goals effective use accumulated funds. These goals should fully or partially, depending on the calculations, cover not only the economic needs of the enterprise, but also ensure its “social” development in the market. Also at this stage, the level of return on each goal is calculated after pouring resources into it. Thus, an enterprise can determine the amount of funds that will become replenishable, through, for example, sales revenue, and which will become irrevocable.
Increase in enterprise profit
After analyzing and distributing financial flows and identified reserves, it is necessary to carry out measures aimed at increasing the net profit of the enterprise; it is the net profit, and not the balance sheet, that is the “indicator” of the use of financial resources.
However, it is worth remembering that measures to increase net profit carry an increase in economic risks associated with the activities of the enterprise (institution). This is an integral direct dependence in the economy, so the next stage will be the regulation of financial risks.
Development of measures to reduce financial risks
Financial risks are very difficult to regulate if the condition is met - an increase in net profit. However, if before using the identified financial resources, the enterprise’s economists carry out work on predictive calculation of the results of economic activity, financial risks can be reduced to a minimum.
Thus, the basic rule of execution this stage programs are qualitative analysis and advance programming of the stages of the organization’s activities.
Development of control systems for enterprise cash flows
This stage is not only an independent point of the program, but also one of the levers for reducing financial risks. Since it is the high-quality synchronization of received and retired cash flows that allows you to manage financial dependence on your counterparties.
Many economists (V.F. Garbuzov, L.A. Drobozina) argue that reducing the balance of idle funds of an enterprise helps to increase net profit, without increasing financial risks.
This approach creates duality of funds in the general flow of financial reserves. On the one hand, they (cash) continue to meet the needs of the enterprise, on the other hand, the enterprise cannot allocate their balances to any specific amount.
Consolidating the results obtained and strengthening the company’s position in the market
This stage is the most favorable development in the formation and use of financial resources. If all the conditions were taken into account and error-free calculations were made, then we can conclude that the enterprise will achieve positive results from the implementation of a program to strengthen the economic position of the enterprise (institution) in the market.
It is worth noting that the last stage, in terms of strengthening the company’s position in the market, is the first stage of the next program, which involves the next analysis and calculation of the enterprise’s financial resources.
financial resource capital
Financial resources are monetary income and savings from outside that are at the disposal of business entities and intended to fulfill financial obligations, meet costs associated with the development of production and economic incentives for workers.
Different authors give different meanings to the concept of “financial resources”. The most widely controversial issues of defining this concept were discussed in economic monographic and periodical literature of the 60s and 70s. The greatest attention was paid to the issues of the composition of financial resources, their economic content, the connection between financial resources and funds.
The most complete study of the economic content, composition, structure and problems of increasing financial resources belongs to a team of authors led by V.K. Senchagova. They define financial resources as follows
way: “Financial resources National economy represent the totality of monetary savings and depreciation charges and other funds in the process of creation, distribution and redistribution of the total social product.” The authors consider financial resources in a broad sense, including
this concept is all funds generated in the process of creation, distribution
and redistribution of the social product. The work examines the relationship between financial resources and the loan fund, as well as the monetary savings of the population in the system of financial resources.
For the first time, the concept of “financial resources” was used in Russian practice when drawing up the first five-year plan, one of the sections of which was the balance of financial resources. Subsequently, this term began to be widely used in economic literature and financial practice, and its interpretation was very different.
Financial resources are the most important source of expanded reproduction and socio-economic development of society. Increasing the volume of financial resources is one of the most important tasks of the state's financial policy. A decrease in the volume of financial resources has a negative impact on the development of society, leads to a reduction in investment, a decrease in consumption funds, and creates imbalances in the distribution of the social product and national income. The influence of financial resources on the economic development of society is not one-sided.
In turn, the composition and volume of financial resources depend on the level of economic development of the state and on the efficiency of production.
Economic growth serves as the basis for increasing the volume of financial resources, and the amount of financial resources allocated to the expansion and development of production helps to increase its efficiency.
Financial resources are generated and used at two levels: country-wide and enterprise-wide. The size and structure of sources for the formation of financial resources on a national scale determine the possibilities for expanded reproduction of the national economy, increasing the living standards of members of society, and increasing state budget revenues. The amount of financial resources generated at the enterprise level determines the possibility of making the necessary capital investments, increasing working capital, fulfilling financial obligations on time, and meeting social needs.
Management must clearly understand from what sources of financial resources the enterprise will operate and in which areas of activity to invest capital. The financial well-being of an enterprise and the results of its activities depend on what capital the business entity has, how optimal its structure is and the appropriateness of transformation into fixed and working capital.
Capital is the means available to a business entity to carry out its activities in order to make a profit.
The financial resources (capital) of the enterprise are formed at the expense of its own and borrowed sources(Fig. 1).
Fig.1.
They also highlight attracted sources, which are external sources of replenishment of the enterprise’s own capital.
Equity capital is characterized by ease of attraction and provides a more sustainable financial condition and reduces the risk of bankruptcy. The need for equity capital is due to the self-financing requirements of enterprises. Own capital is the basis for the independence of an enterprise. The peculiarity of equity capital is that it is invested on a long-term basis and is subject to the greatest risk. The more in total amount capital share own funds and less - borrowed, the more firmly protected from losses of creditors, and therefore the risk of loss is reduced.
However, it must be taken into account that equity capital is limited in size.
In addition, financing the activities of an enterprise only from its own funds is not always beneficial for it, especially when production is seasonal. Then, in certain periods, large funds will accumulate in bank accounts, and in others there will be a shortage of them.
It should also be borne in mind that if prices for financial resources are low, and the enterprise can provide more high level return on invested capital than it pays for credit resources, then by attracting borrowed funds, it can control larger cash flows, expand the scale of activity, and increase the return on equity (shareholder) capital. As a rule, a company takes out a loan to strengthen its position in the market.
At the same time, it should be taken into account that in proportion to the increase in the share of borrowed capital, the risk of a decrease in the financial stability and solvency of the enterprise increases, and the return on total assets decreases due to the interest paid on the loan. The disadvantages of this source of financing also include the complexity of the attraction procedure, the high dependence of loan interest on financial market conditions and, in connection with this, an increase in the risk of reducing the solvency of the enterprise.
The financial position of an enterprise largely depends on the ratio of equity and borrowed capital.
Thus, financial resources are used to finance investments, as well as advance working capital funds, i.e. all business expenses.
Let's consider the enterprise's use of financial resources in some areas, the main ones being:
- Ш payments to the financial and banking system (tax payments, payments to the budget, payment of interest to banks for using loans, repayment of previously taken loans, insurance payments);
- Ш investment of own funds in capital costs (reinvestment) associated with the expansion of production and its technical renewal, transition to new advanced technologies, use of know-how;
- Ш investment in securities purchased on the market: shares and bonds of other companies, in government loans;
- Ш formation of monetary funds of an incentive and social nature;
- Ш charitable purposes, sponsorship.
The main source of financing is equity capital (Fig. 2).
It includes authorized, accumulated capital (reserve and additional capital, retained earnings) and other income (targeted financing, charitable donations, etc.).
Rice. 2.
Authorized capital is the amount of funds of the founders to ensure authorized activities. At state enterprises this is the cost of property; assigned by the state to the enterprise with the rights of full economic management; at joint-stock enterprises -- nominal cost shares; for limited liability companies - the sum of the owners' shares; for a rental enterprise - the amount of contributions of its employees, etc. The authorized capital is formed in the process of initial investment of funds. Contributions of founders to the authorized capital can be in the form of cash, property and intangible assets. The amount of the authorized capital is announced upon registration of the enterprise, and when adjusting its value, re-registration of the constituent documents is required.
When creating an enterprise, the authorized capital is allocated for the acquisition of fixed assets and the formation of working capital in the amounts necessary to conduct normal production and economic activities, licenses, patents, know-how, the use of which is an important income-generating factor. Thus, the initial capital is invested in production, in the process of which value is created, expressed by the price of products sold.
Additional capital as a source of funds for an enterprise is formed as a result of the revaluation of property or the sale of shares above their nominal value.
Reserve capital is created in accordance with legislative acts or constituent documents at the expense of the net profit of the enterprise. It is an insurance fund to compensate for possible losses and ensure the protection of the interests of third parties if the profit to repurchase shares, repay bonds, or pay interest on them is not enough. By its size the reserve is judged financial strength enterprises. The absence or insufficient value is considered as a factor of additional investment risk.
Retained earnings (uncovered loss) of the reporting period are reflected in the balance sheet as a cumulative total from the beginning of the year. After distribution, its balance is added to the balance of retained earnings from previous years.
For special purpose equipment and targeted financing These include values received free of charge from individuals and legal entities, as well as non-refundable and repayable budget allocations for the maintenance of social and cultural facilities and restoration of the solvency of enterprises receiving budgetary funding.
The formed fixed capital needs to be replenished in the process of carrying out economic activities. There are internal and external sources of replenishment of equity capital. Sources of replenishment of equity capital are presented in Fig. 3. If the enterprise is unprofitable, equity capital is reduced by the amount of losses received.
The main source of replenishment of equity capital is profit. A significant share in the composition of internal sources is occupied by depreciation charges from used own fixed assets and intangible assets. They do not increase the amount of equity capital, but are a means of reinvesting it.
Rice. 3.
Other forms of equity capital include income from leasing property, settlements with founders, etc. They do not play a significant role in the formation of the enterprise’s equity capital.
The main share in the external sources of equity capital formation is occupied by additional issue of shares. State enterprises Free financial assistance from the state may be provided. Other external sources include tangible and intangible assets transferred to the enterprise by physical and legal entities as a charity.
In a market economy, the production and economic activities of an organization are impossible without the use of borrowed funds. Borrowed capital organization includes funds or other property assets raised on a repayable basis to finance the development of the company's activities. All forms of debt capital used by a firm represent its financial obligations that must be repaid at specified times.
Borrowed capital is loans from banks and financial companies, loans, accounts payable, leasing, commercial paper, etc. (Fig. 4). It is divided into long-term (more than a year) and short-term (up to a year).
Rice. 4.
The purposes of borrowed funds are:
- Ш for the reproduction of fixed assets and intangible assets;
- Ш replenishment of current assets;
- Ш satisfaction of social needs.
Borrowed funds can be raised in cash, commodity form, in the form of equipment (leasing) and other forms.
Based on sources of attraction, borrowed funds are divided into external and internal.
According to the maturity of repayment - long-term and short-term.
According to the form of security - secured by a pledge or mortgage, surety or guarantee and unsecured. In the event of liquidation of an enterprise, secured obligations are satisfied on a priority basis, unsecured obligations - on a residual basis.
To obtain additional income, enterprises have the right to purchase securities of other enterprises and the state, invest funds in the authorized capital of newly formed enterprises and banks, and lend them to other enterprises on the terms of repayment, urgency and payment. Temporarily available funds of an enterprise can be allocated from the total cash flow.
