Enterprise finance. State and enterprise finance

Enterprise finances – a set of economic relations aimed at the formation, distribution and use of an enterprise’s funds to achieve its goals and objectives.

Financial resources- assets that allow you to increase the ability of the enterprise to generate income and/or assets that increase the ownership of shareholders.

In market conditions, the financial activity of an enterprise is based on 3 principles :

Self-government;

Self-sufficiency;

Self-financing.

B with leaving Enterprise finance includes:

Sources of financial resources;

Methods (ways) of resource mobilization;

Directions for using financial resources;

Financial flows.

Financial management activities - financial management.

The financial management system at the enterprise is built on the basis of general organizational methods:

Forecasting;

Planning;

Control;

Stimulation.

Organizational structure of the financial management system at the enterprise, as well as its personnel composition, can be built in various ways depending on the size of the enterprise and the type of its activity. However, all services are directly or indirectly involved in financial relations. So, for example, financial management services (directly managing finances) include the top management apparatus, economic planning department, financial department, accounting, etc. They are responsible for financial management in the enterprise. And for technical services or production departments, financial management is a side activity. However, they are the ones who can really assess, for example, the period of use, the type of wear and tear of equipment, which is necessary to justify the method of calculating depreciation charges.

Financial manager at the enterprise is responsible for:

Statement of financial problems;

Formulation of the goal of solving the problem;

Analysis of the feasibility of all ways to achieve the goal;

Execution, control over the implementation of decisions made;

Operational financial activities;

Exercising control over financial flows.

Organization of financial management at the enterprise is shown in Fig. 1.

Profit centers include departments that control income, for example: marketing department, logistics department, foreign economic relations department; to the center of investment - the top management apparatus.

Rice. 1 Organization of financial management at the enterprise.

Main areas of financial management activities:

1) Asset management (firm's investment policy).

2) Management of long-term finances of the enterprise.

3) Short-term finances of the enterprise.

4) Cost and expense management.

5) Liability management (tax policy).

Sources of funding enterprises can classify according to the following characteristics:

1) according to the timing of raising funds:

Short-term (up to 1 year or 1 operating cycle);

Long-term (> 1 year or 1 operating cycle).

2) according to the form of resource ownership:

A) own– the amount of funds provided by the owners to ensure the statutory activities of the enterprise:

Funds contributed in the form of a contribution from the owner (authorized capital, additionally invested capital);

From the activities of the enterprise (retained earnings, other additional capital, depreciation)

b) attracted:

By timing (short-term, long-term);

Paid:

securities (bonds, bills);

contracts (bank loan, commercial loan, leasing, etc.)

Free:

deferred tax liability;

any deferred payments on current obligations;

accrual accounts (stable liabilities) - wage arrears, payments to the budget.

Contents and purpose of finance of enterprises (corporations)

finance money control management

The presence of commodity-money relations in the economy of modern Russia presupposes the use of such cost (economic) categories as “money”, “price”, “capital”, “profit”, “finance”, “credit”, etc. They represent theoretical ( abstract) expression of certain social relations between people in the process of production, distribution, exchange and consumption of material goods.

Finance is the object of study of financial science, which explores the patterns of development of social relations represented in a given value category. The object of study of financial science is both national (public) finance and the finances of individual economic entities (enterprises and corporations). With the help of public finance, they study the process of formation and use of government revenues and expenses. The object of studying the finances of economic entities is the formation and use of their capital, income and monetary funds (consumption, accumulation and reserve).

The state acts not only as a subject of ownership of a certain part of the property, but also as an agent of production - an economic entity (financial support from the federal budget for priority sectors of the economy, science, export of goods, purchases of agricultural raw materials, personnel training, etc.).

The development of monetary relations, expressed in finance, occurs according to relatively specific laws. The main ones are the following.

Firstly, financial relations are directly generated by the state, while other cost categories (money, price, depreciation, profit) are determined by the conduct of a commodity economy. Let us explain this pattern.

1. The development of financial relations is an objective pattern that arises at certain stages of the development of society in connection with the emergence of the state.
2. The amount of financial resources available to the state ultimately depends on economic conditions.
3. The state cannot arbitrarily build a financial system, since even the forms of financial relations are determined by economic conditions, which directly affects the composition and structure of government revenues and expenses (budget fund).
4. The state can establish only such types of taxes and fees that correspond to the operation of objective economic laws and the needs of the development of productive forces. For example, the Tax Code of the Russian Federation, effective January 1, 2001, established 28 federal, regional and local taxes and fees instead of the previous 43. Profit tax rates, VAT and contribution rates to state extra-budgetary funds have been reduced.
5. The state, given the great influence of finance on the economy, often uses it to enhance its impact on economic growth (increasing gross domestic product and employment, reducing inflation, etc.).

Secondly, an important condition for the emergence and development of finance is the sphere of distribution of commodity-money relations in the totality of economic relations. The wider this area is represented, the greater the importance of finance in the economic system.

Thirdly, finance expresses monetary relations associated with the formation and use of centralized and decentralized monetary funds (fund of budgetary funds and monetary funds of economic entities).

Fourthly, the regulatory activities of a particular country related to the practical use of finance are separated into the financial policy of the state. It is carried out by specially authorized government bodies (Ministry of Finance of the Russian Federation, Ministry of Economic Development and Trade, Federal Service for Financial Markets, etc.).

Fifthly, finance in its developed form includes not only national finance, but also government credit, finance of enterprises and corporations.

These patterns make it possible to define financial relations as a relatively independent economic science associated with the practical use of finance in social reproduction, studying their content, forms of manifestation, patterns, and role in the economic system.

The history of the formation and development of finance indicates that they are characterized by the following features:

·monetary (cost) nature of financial relations;
· distributive (redistributive) nature of financial relations;
· stock nature of monetary relations expressing the category “finance”;
· financial relations are always associated with the formation of income and receipts of funds that take the form of financial resources;
·financial relations, being objective, are nevertheless regulated by the state.

Let us give a brief description of each feature.

1. Financial relations between economic entities and the state are of a monetary (value) nature, which makes it possible to separate finance from in-kind fees that dominated in the era of slavery and feudalism. The emergence of financial relations is always accompanied by real cash flows, which is typical for a developed market economy.
2. Finance expresses distribution (redistribution of the value of gross domestic product (GDP)). These processes are characteristic of the second stage of the reproduction process - the distribution of the value of GDP in monetary form (Fig. 1.1). At this stage, the movement of value in monetary form is carried out separately from the movement of goods, which is caused by its alienation (transfer from one owner to another - the state in the form of indirect taxes) or the targeted division of each part of the value within one owner - into compensation and consumption funds and profit. Consequently, at the second stage of reproduction, there is a one-way movement of value in monetary form (M-M) without a counter equivalent - a commodity.

It should be noted that at the third stage (exchange), the distributed value in monetary form is exchanged for the commodity form, i.e., an act of purchase and sale of goods occurs at market prices (T-D; D-T). Commodity exchange operations serve two categories:

·money as a universal equivalent, as a result of which the social product is distributed among the subjects of reproduction;
·price, on the basis of which the quantitative comparison of value in monetary and commodity forms occurs.

No other value instruments are required for the exchange process.

The sphere of the emergence and functioning of finance is the second stage of social reproduction, where GDP is distributed according to its intended purpose (for compensation, consumption and accumulation funds) and to business entities. Thanks to finance, various processes of redistribution of the value of the social product are carried out in all parts of the national economy and in the non-productive sphere. A similar process occurs at the level of individual enterprises and corporations, where the object of distribution is sales revenue (Fig. 1.2).

The distribution (redistribution) of the value of GDP with the help of finance is accompanied by the movement of funds taking the form of financial resources. They form the material basis of finance. Monetary resources are generated by business entities from income from the sale of goods (services) and other income. Part of them is transferred to the state in the form of taxes and fees and takes the form of budgetary and extra-budgetary funds. So, financial resources act as a material carrier of financial relations in the economic system.

The composition of financial resources of enterprises (corporations) is presented in Fig. 1.3.

3. The use of financial resources is carried out through special-purpose monetary funds, although a non-fund form of their expenditure is also possible (for example, an estimated form of financing in budgetary organizations).

Financial funds are an important component of the monetary funds created in the Russian national economy (for example, wage fund, loan fund, reserve funds).

The stock form of functioning of financial resources allows:

·more closely link the satisfaction of any need with the economic capabilities of the state;
·concentrate financial resources on priority areas of development of social reproduction;
·more fully link public and personal interests in order to develop production.
4. Financial relations are always associated with the formation and use of income, which takes the form of financial resources. None of the value categories (except finance) has such a material carrier.
5. Financial relations, being objective, are nevertheless regulated by the state through:
- · taxes and tax benefits;
- ·financial sanctions for non-compliance with tax laws;
- · the procedure for calculating depreciation on fixed assets and intangible assets (linear and non-linear methods);
- interest on government securities;
- ·discount rate of the Central Bank of Russia;
- ·tariff of contributions to state extra-budgetary funds;
- · the minimum amount of the authorized capital of joint-stock companies of closed and open types, etc.

Monetary relations, expressed by finance, are brought together by the state into a unified system for the formation and use of funds of financial resources.

Identification of the essential features of finance allows us to give them the following definition.

Finance expresses a system of monetary relations regulated by the state in order to form and use funds of financial resources to satisfy various social needs.

This definition is the most general, characterizing finance as a cost (economic) category.

Along with the national one, an important link in the Russian financial system is the finance of enterprises of various forms of ownership (business partnerships and societies, state unitary enterprises, production cooperatives, financial and industrial groups, holdings and other commercial organizations).

The finances of enterprises and corporations express a system of monetary relations that arise in the process of economic activity and are necessary for the formation and use of capital, income and funds.

The main types of monetary (financial) relations include:

· relations with external contractors;
·relations with internal partners (staff);
· relations with the banking system;
· relations with the budget system and state extra-budgetary funds.

In Western countries, authors of publications on corporate finance and financial management usually pay little attention to the theoretical aspects of the essence of finance. They reduce this concept to an applied management function, revealing in it specific ways to manage the financial activities of a company.

Thus, E. Body and R. Merton defined finance as “the science of how people manage the expenditure and receipt of scarce monetary resources over a certain period of time. Financial decisions are characterized by the fact that expenses and income: 1) are separated in time; 2) as a rule, cannot be accurately predicted either by those who make decisions or by anyone else.”

The financial system is a collection of markets and other institutions used to enter into financial transactions, exchange assets and risks. This system includes the securities market, financial intermediaries, firms offering services and authorities that regulate the activities of all these institutions.

Thus, in the interpretation of Western economists of the Anglo-American school, finance as an academic discipline includes three sections of knowledge:

1) financial management - financial management of corporations, i.e. companies with many shareholders;
2) financial market and institutions - issuers, investors, financial intermediaries and authorities regulating their activities;
3) investments - the formation of investment resources and their investment in real or financial assets of the corporation.

Let's consider the most important elements of the category of finance, characteristic of Russian practice.

Capital - sources of own and borrowed funds necessary for the formation of assets. Income - the total amount of revenue (net) from the sale of products (work, services), as well as income from non-sales operations. Cash fund is a separate part of the enterprise’s funds that has received a designated purpose and relatively independent functioning.

Cash is a broader concept than cash funds, which constitute only part of the funds (in cash and non-cash forms) in circulation of the enterprise.

Cash flows are the targeted movement of funds in the current, investment and financial areas of the enterprise (corporation).

Being part of production relations, the finances of economic entities belong to the economic basis of society.

The specific content and social purpose of finance are manifested in their functions. It should be borne in mind that the function must be specific, characteristic of a given cost category. The function of an economic category as a form of manifestation of its social purpose must not be confused with the role of the category as a result of its practical use in reproduction.

In the conditions of a market (commodity) economy, it is legitimate to recognize the presence of three functions in the finances of enterprises (corporations):

1) formation of capital, income and cash funds;
2) use of capital, income and funds;
3)control function.

The first of them (the formation of capital, income and monetary funds) serves as a necessary condition for the continuity of the reproduction process. Due to the primary distribution of proceeds from the sale of goods, special funds of enterprises and corporations are formed, which are reflected in their financial plans (budgets).

It should be noted that, in accordance with regulatory documents on accounting, in the balance sheet the balances of consumption and accumulation funds formed in accordance with the constituent documents and adopted accounting policies at the expense of net profit based on the results of work for the year are not reflected separately. The corresponding explanations characterizing the use of net profit are given in the explanations to the balance sheet and the income statement (in particular, in the statement of changes in equity), as well as in the explanatory note.

In the process of redistributing revenue from sales at the expense of all its elements (c + v + m), the following state revenues are formed:

1. At the expense of the compensation fund (c) they pay taxes included in the costs of production and circulation (for the use of subsoil, for the reproduction of the mineral resource base, forestry, water, environmental and other taxes).
2. From the wage fund (v) at established rates, a single social tax (contribution) is paid, credited to state extra-budgetary funds - the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the compulsory medical insurance funds of the Russian Federation.
3. At the expense of profit (m), they contribute to the budget income tax and other similar mandatory payments attributed to the “Profit and Loss” account. The use of capital, income and monetary funds for the purposes provided for in the financial plan (budget) of an enterprise (corporation) constitutes the economic content of the second function of finance.

In the process of using the enterprise’s income, the following occurs:

its distribution (primary division into constituent elements - c + v + m);
· redistribution - when paying taxes from profits to the state budget system;
· specific expenditure of funds formed from profits, which is accompanied by a counter movement of value in commodity form (M-T and T-D).

For example, the acquisition, using funds allocated for capital investments, of design and estimate documentation, materials and equipment for construction. In this function, finance contributes to the transformation of the monetary form of value into a commodity form and vice versa.

The state, at the expense of the income received (in the form of taxes and fees), uses it for the purposes provided for in the federal and regional budgets. In the third (control) function, finance is used to monitor compliance with cost and material proportions in the formation and use of income of enterprises (corporations) and the state.

This function is based on the movement of financial resources. For example, when paying taxes and fees to the budget fund. It provides an opportunity for the state to influence the final financial results of the activities of business entities. Thus, when considering bankruptcy cases of a debtor (legal entity), the following bankruptcy procedures are used:

·observation;
financial recovery;
·external control;
· bankruptcy proceedings;
· settlement agreement.

According to federal legislation on insolvency (bankruptcy), a legal entity is considered bankrupt if it is unable to satisfy the claims of creditors for monetary obligations and/or fulfill the obligation to pay mandatory payments (taxes and fees) within three months from the date of their occurrence. The composition and amount of monetary obligations and obligatory payments are determined on the date of filing an application for declaring the debtor bankrupt with the arbitration court.

The instrument for implementing the control function of finance is the financial information contained in the financial statements. This information serves as the initial basis for calculating analytical financial ratios that characterize the financial stability, solvency, profitability, business and market activity of enterprises. Financial indicators make it possible to evaluate the results of economic activities and outline measures aimed at eliminating identified negative aspects. Since the “signals” sent by the control function of finance are expressed through quantitative financial indicators (sales volume, investments, assets, equity, profit, etc.), the question of the reliability of financial information is acute. Only under this condition can informed management decisions be made.

The control function inherent in finance can be realized in practice with greater or less completeness. The degree and completeness of the implementation of the control function of finance is largely determined by the state of financial discipline in the national economy.

Financial discipline is the procedure for conducting financial management, obligatory for all business entities and officials, compliance with established rules for fulfilling financial obligations to counterparties and the state.

Financial control in the national economy is carried out by:

·financial and accounting services of enterprises (corporations) when paying suppliers' bills - for material assets and services, production and distribution costs and shipment of products to consumers, collection of accounts receivable, compliance with cash discipline, etc.;
· banks - in the process of lending to their clients;
tax authorities - when legal entities and individuals pay taxes and fees to the budget fund, etc.

The control function is determined by the presence of other functions among financiers and is closely interconnected with them.

Unlike finance, credit is a form of movement of loan capital. It is provided to borrowers by banks on a paid and repayable basis. As a value category, credit performs the function of replacing cash with credit instruments of circulation (settlements not in cash, but in various means of payment: bank transfers, checks, etc.).

Loan capital is formed from various sources: from funds temporarily released from circulation by business entities, the population, banks and the budget.

The formation of loan capital from these sources indicates a close connection between finance and credit, since they are monetary relations. However, there are various ways to provide financial and credit resources to economic entities.

2 . Evolution of financial management

Financial management is a very young science. Its isolation into an independent systematized field of knowledge devoted to logic, technology and methods of managing the finances of an economic entity occurred relatively recently, but this did not happen suddenly, not out of nowhere, but was prepared by the development of both financial science as a whole and a number of related disciplines, directly related to business management.

We can distinguish two major stages characteristic of the formation and development of the science of finance: the first, which began during the Roman Empire and ended in the middle of the 20th century, found its theoretical formulation in the classical theory of finance; the second stage, the logic of which is expressed by the neoclassical theory of finance.

The essence of the first theory is the dominance of the state in finance; the essence of the second theory is the dominance of private sector finance (more precisely, we are talking primarily about finance from the perspective of large companies and capital markets).

Due to the exceptional duration of the first stage, it is customary to distinguish separate periods in it. In particular, one of the leading theorists of financial science of the 19th century, Professor K. Rau, distinguished three periods of its development at the first stage: the unscientific state, the transition to scientific processing, and the scientific (rational) period.

The 40s and 50s of the 20th century can be called the beginning of a fundamentally new stage in the development of financial science, in the interpretation of its logic and content; It was during these years that the neoclassical theory of finance took shape.

In its most general form, neoclassical finance theory can be defined as a system of knowledge about the organization and management of the financial triad: resources, relationships, markets. The emphasis within this theory is primarily on generalization, explanation, forecasting and formation of trends in the financial management of a company as the main system-forming element of a market economy. When applied to a company’s finances, the mentioned triad lends itself to a very simple and clear interpretation: resources are what circulates in the financial market; (contractual) relations are what formalizes, legitimizes, and makes generally accepted the movement of resource flows when carrying out or intending to carry out mobilization and investment operations; The market is a place and mechanism through which procedures for formalizing relations and the movement of resources are organized and systematized, simplified and unified.

By the middle of the 20th century, the neoclassical theory of finance was already well represented by monographic works. Moreover, a significant part of the scientific literature on the theory of finance in those years focused, rather, on the problems of the capital market, rather than on issues of managing the company’s financial resources. Of course, knowledge of the theoretical foundations of financial management is necessary, but the applied aspect is no less important. It was the latter that caused the formation of the applied discipline “financial management” in the 60s as a science dedicated to the methodology and technique of managing a company’s finances. This happened by naturally supplementing the basic sections of the theory of finance with analytical sections of accounting (analysis of the financial condition of the company, analysis and management of accounts receivable, etc.) and some conceptual apparatus of the general theory of management. The recognition of financial management in Russia dates back to the early 90s of the 20th century and is associated with the publication of fundamental works by representatives of the Anglo-American financial school, primarily Y. Brigham, R. Braley, W. Sharp. Then original Russian-language literature began to appear. Various approaches to the interpretation, structuring and content of financial management sections can be found in the works of such specialists as I.A. Blank, L.P. Pavlova, B. Polyak, E.S. Stoyanova, V.V. Kovalev, A.D. Sheremet et al.

Finance of enterprises (organizations, institutions) is a monetary relationship associated with the formation and distribution of monetary funds and savings among economic entities and their use for the needs of economic activity and for the fulfillment of obligations to the state, financial institutions and partners.

There are certain specifics of commercial enterprises, non-profit enterprises and public organizations, which will be shown below. However, any economic entity is characterized by the existence of the following relatively homogeneous groups of monetary relations:

– relations between enterprises associated with the formation of primary income (income from core activities), which ensure the acquisition of inventory, sales of enterprise products, acquisition and sale of production services, as well as with the formation of enterprise trust funds: authorized, reserve, special and etc.;

– relations between enterprises that are of a distributive nature (do not serve exchange), which include the payment and receipt of fines, penalties and penalties for failure to fulfill obligations, investing in income-bearing securities (state and other enterprises), receiving income and loss on them etc.;

– relations of enterprises with financial and credit institutions in connection with obtaining bank loans, paying interest on them and their repayment, placing temporarily free funds in banks and receiving income from them, etc.;

– relations of enterprises with insurance organizations regarding the purchase of insurance policies (insurance payments) from them and the receipt of insurance compensation;

– relations of enterprises with the state, which include participation in the formation of budgetary and extra-budgetary funds, as well as receiving allocations from them (in the form of cash subsidies, preferential loans or tax benefits);

– relations of enterprises with higher management bodies, which are typical, firstly, for state-owned enterprises (relations with government bodies) and, secondly, for enterprises that are members of various associations - holdings, associations, trusts, etc. (relations with governing bodies of associations).

Monetary relations of enterprises in the production sector are the most important tool for influencing the efficiency of their activities. This is due to the fact that finance reflects the closest interaction between the process of creating value and its distribution: the amount of value created determines the volume of financial resources of the enterprise as a whole and its individual funds, and this, in turn, is a fundamental prerequisite for the growth of production and increasing the scale of the created cost. The latter is implemented through the volume of capital investments, the volume of current production financing, the volume of material incentives for personnel, etc.

In the non-productive sphere (the sphere of providing services of a social and intellectual nature - education, science, medicine, etc.), finance plays the role of a regulator of the most important aspects of social life: the financial resources of the relevant enterprises (organizations) determine such parameters of society as its educational and cultural level , health, age structure, scientific and technical potential, etc.

Indirectly, the activities of these enterprises determine the level of work of enterprises in the production sector. Commercial enterprises, the purpose of which is to make a profit, can operate in both the production and non-production spheres. Regardless of this, their finances are almost identical and can be described as a system of payments (payments and receipts), which is in the nature of the circulation of enterprise funds.

The movement of funds of an enterprise begins with the process of accumulating funds, which can be received as payment for property (share of ownership of the enterprise) or as payment for the debt obligations of the enterprise. Thus, two components of the enterprise’s capital arise: own funds and borrowed funds.

An enterprise's own funds can be raised both through the financial market (securities market) through the public sale of shares of the enterprise, and outside this market through a direct agreement between the owners. The first method is used, as a rule, when creating open joint stock companies and increasing their capital. The second method is typical for closed joint-stock companies, partnerships and cooperatives; depending on the legal status of the enterprise, this method can be implemented in the form of the sale of shares, distribution and payment of shares, shares, etc.

An enterprise's borrowed funds can also be raised through the securities market by selling its bonds. However, in the modern conditions of the Russian Federation, credit relations are much more widespread as a source of borrowed funds.

An enterprise enters into two types of credit relationships:

– monetary credit, which consists of obtaining loans from financial and credit organizations (commercial or government);

– a commercial loan, which consists of deferring payments for goods and services supplied to the enterprise by its partners. (The non-monetary nature of this loan is apparent: by postponing the payment terms, the enterprise leaves funds at its disposal in the appropriate amount).

Own and borrowed funds are combined by the enterprise into its capital: at this stage, the movement of funds is money that the enterprise can use to conduct production and economic (main) and other (corresponding to the Charter of the enterprise) activities. A very important issue, the solution of which significantly affects the financial capabilities of the enterprise, is the determination of a rational combination of own and borrowed funds - the financial structure of capital. If an enterprise follows the path of increasing its own funds, then it simultaneously faces two problems: dispersion of property and a decrease in the manageability of the enterprise and limited resources attracted. At the same time, increasing borrowed funds is possible, firstly, only at a sufficiently low price (lower than the profitability of the enterprise) and, secondly, only with a sufficient amount of own funds (a type of guarantee to the lender). In general, an enterprise should strive to fully match its overall size and capital efficiency with its market opportunity (attainable sales volume).

An enterprise, as a rule, uses the generated monetary capital in three directions: the acquisition of production assets, the acquisition of profitable assets and the formation of reserves.

Production assets are mainly the material and technical resources necessary to conduct the production and economic activities of an enterprise. In production assets, capital from the monetary form temporarily (for the period of the production cycle or for the period of use of the funds) passes into the material form. Depending on the period of preservation of this form and whether it changes during this period, there are:

– fixed production assets, which are characterized by an immutable material form and, as a rule, a long period of its preservation (buildings, equipment, etc.);

– circulating production assets, which are characterized by a change in material form and, as a rule, a short period of their use (materials, semi-finished products, etc.).

A type (in meaning) of production funds is the wage fund - funds spent by an enterprise on the acquisition of labor resources. The specificity of this fund is that the capital placed in it does not change its monetary form, however, it is also spent in the course of production and economic activities and therefore (mainly to avoid clutter) it is not allocated as a separate element of the scheme. Income assets are investments of an enterprise in securities, shares of other enterprises, time deposits of financial institutions. The goals of forming income-generating assets are:

– actual receipt of income;

– diversification of sources of income in order to compensate for its possible fall within the framework of the main (production and economic) activities;

– the use of such a method of storing temporarily free funds (savings) of the enterprise, which will simultaneously ensure their protection from inflation and liquidity.

Reserves are the funds of an enterprise allocated to special funds intended to eliminate the difficulties of the enterprise under certain circumstances. All reserves are of an insurance nature, but only part of them is created in the insurance form: payment for services (insurance policies) of insurance organizations. The other part is funds, the creation of which is regulated by law (enterprise reserve) or a type of savings that an enterprise creates by its own decision, based on the specifics of its activities (for example, a reserve of an enterprise engaged in foreign trade activities to cover losses as a result of changes in exchange rates). Such savings differ from income-generating assets in that, despite the similar form of creation, they, firstly, are intended for other purposes, and, secondly, the requirements for their liquidity are much higher. The use of reserves actually means compensation for the loss of value of the enterprise's production assets - replenishment of capital loss.

Production assets (having gone through all stages of the production process - from creating inventories to selling products) and income-generating assets (in the form of payments on them or through their sale - selling securities, closing deposits) form the income of the enterprise. At the same time, different types of production assets take different roles in this process:

– fixed assets partially transfer their value to finished products (services) in the form of depreciation charges;

– working capital transfers its entire value into the cost of finished products.

The income of an enterprise is the gross revenue from all types of activities, which is divided into two components:

– profit of the enterprise, which represents the net (in the economic sense) income of the enterprise;

– costs, which represent part of the revenue that compensates for the costs of the enterprise.

The profit of the enterprise is distributed in three directions:

Part of the profit that will be used for the development of the enterprise (purchase of new production assets, replacement of fixed assets, acquisition of new profitable assets, development of enterprise reserves, etc.); from the point of view of the capital structure, this part of the profit increases the enterprise’s own funds;

Part of the profit that is used to pay income to the owners of the enterprise in the form of dividends to shareholders and to pay special (in addition to wages) income to employees (for example, bonuses for top managers); from the point of view of the direct impact on the enterprise’s economy, this part of the profit seems to be an inappropriate expense, because reduces the potential amount of capital of the enterprise and, consequently, its potential income and profit, however, a sufficiently high level of this share of profit stimulates owners to make additional investments, which allows, for example, to place new issues of shares - to attract new investors;

Part of the profit that is used for payments - mandatory payments of the enterprise, the source of which is precisely profit, which includes:

– payments to the state – taxes attributed to profit, fines and penalties for late and incomplete payment of taxes, etc.;

– payments to banks in the form of interest on loans, if this interest exceeds the standard established by the state;

– payments to partners for a commercial loan, the fee for which, as a rule, is not directly established, but for goods and services supplied with deferred payment, a higher price is most often set than for immediate payments; this price difference is actually covered from the profit of the enterprise.

Enterprise costs can be divided into two parts:

The part of the costs that is covered by the enterprise’s own funds and borrowed funds, the repayment period of which has not yet come. This part is directly spent on the formation of production assets, in return for their used part.

Part of the costs, which represents payments attributable (in particular, according to accounting requirements) to the costs of the enterprise, which include:

- payments to the state - deductions attributed to production costs (for example, deductions to extra-budgetary funds);

– payments to banks in the form of repayment of loans and interest payments on them within the established standard;

– payments to partners in the form of repayment of accounts payable (within the price limits for immediate settlements).

All the elements of the enterprise's cash flow process described above are either the result of its initiative (decision-making by the enterprise itself) or arise as a result of government actions (in response to legal requirements). At the same time, there are also elements of this process that the initiative of the enterprise itself cannot provide. These elements are related to the replenishment of spent borrowed funds: the provision of new bank loans and new deferred payments. Here the mutual agreements of the enterprise with banks and partners come into force, which provide agreements on the provision of loans under certain conditions. In order for an enterprise to use a loan, it is necessary to build the rest of the circulation of funds as accurately and efficiently as possible. The lender considers an enterprise sufficiently reliable for lending that invests enough of its own funds in production, uses production assets in strict accordance with need, rationally distributes its profits, and fulfills all its obligations in full and on time.

Non-profit enterprises (organizations) are enterprises that carry out their activities solely to achieve the purposes for which they were created, but not to make a profit.

The finances of non-profit enterprises are monetary relations that arise when they mobilize financial resources from various sources and use them to carry out and expand their activities.

The main features of the finances of non-profit enterprises are determined by the specific structure of their sources of financing.

In order of importance at present, these sources are:

funds from the state budget and extra-budgetary funds allocated on the basis of established standards;
funds of enterprises and citizens received for work and services performed under contracts with them, in excess of those provided for by state funding standards;
revenue from the rental of premises, structures, equipment;
voluntary contributions and donations from sponsors;
other income, if they do not violate the non-commercial nature of the enterprise.

Forms of financing non-profit enterprises are:

estimated financing - for those enterprises that do not cover their expenses from income from activities;
self-financing – for enterprises that are able to cover expenses from income.

The finances of public organizations (parties, trade unions, foundations) include the following monetary relations:

between the organization and its members: entrance and membership fees, payments and benefits at the expense of the organization’s funds;
between the organization and enterprises: voluntary, incl. targeted donations;
between lower and higher structural elements of the organization: transfer of funds in both directions;
between the organization and subordinate enterprises and organizations: payments and allocations from the organization’s funds;
within a public organization: expenses for the current activities of the organization and capital investments.

Source - Golubev A.A., Gavrilov N.P. Finance and credit: Textbook. – St. Petersburg: St. Petersburg GUITMO, 2006. – 95 p.

Finance of organizations (enterprises) is a relatively independent sphere of the state finance system, covering a wide range of monetary relations associated with the formation and use of capital, income, and funds in the process of circulation of enterprise funds.

It is in this area of finance that the bulk of income is generated, which is subsequently redistributed through various channels in the national economic complex and serves as the main source of economic growth and social development of society.

All incomes of subjects of economic relations in the process of reproduction are divided into primary and secondary, received after the redistribution of primary incomes. They are formed:

For enterprises - in the form of profit remaining at their disposal and depreciation charges (net cash flow);

For employees (households) - in the form of net wages remaining after paying taxes and mandatory payments, payments from net profit to shareholders and participants, wages to public sector employees, payments from extra-budgetary social funds;

The state - in the form of redistributed income of enterprises to the budget and extra-budgetary funds.

The role of finance in the economic activities of enterprises is manifested in the fact that with their help the following are carried out:

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

Distribution of proceeds from the sale of goods (after payment of indirect taxes) to the fund for reimbursement of material costs, including depreciation, wage fund (including contributions to extra-budgetary funds) and net income in the form of profit;

Redistribution of net income into payments to the budget (income tax) and profits left at the disposal of the enterprise for production and social development;

Use of the profit left at the disposal of the enterprise (net profit) for consumption, accumulation, reserve and other purposes provided for in its financial plan (budget);

Monitoring compliance between the movement of material and monetary resources in the process of individual circulation of funds, i.e., the state of liquidity, solvency and financial independence of the enterprise from external sources of financing.

The existence of finance is inextricably linked with the existence of commodity-money relations and the regulatory role of the state.

A significant part of the financial relations of enterprises is regulated by civil legislation: the amount and procedure for the formation of authorized and reserve capital for enterprises of various organizational and legal forms; procedures for placement and redemption of shares, privatization, liquidation, bankruptcy; the order of priority for debiting funds from the current account; the composition of costs attributable to the cost of production; accounting policy options, objects and tax rates and a number of others.

The material basis of enterprise finance is the circulation of capital, which in the conditions of commodity-money relations takes the form of money circulation.

Formation of cash income and funds of organizations

Certain monetary incomes and funds are formed at the enterprise already at the stage of creating and distributing SOP and GDP. Thus, part of the proceeds from the sale of products should be used to reimburse material costs and pay for labor. But from the revenue received, the enterprise accumulates funds in the form of depreciation charges on fixed assets and intangible assets. In principle, they are intended for the acquisition of new relevant property, but before its acquisition they are in the circulation of the enterprise.

In addition, from the proceeds received from the sale of products, cash reserves are formed for future expenses and payments, the composition of which is regulated by the relevant regulatory document in the field of accounting and the accounting policy of the enterprise. Enterprises can also form a repair fund designed to evenly cover the costs of particularly complex types of repairs of fixed production assets in the cost of production.

The process of distribution is accompanied by a process of redistribution. Thus, when paying wages, personal income tax and social tax are withheld. The payment of dividends is also associated with the withholding of income taxes from individuals and legal entities - owners of shares.

In the total amount of paid revenue, the company also receives income in the form of profit. As a result, retained earnings (previous years and the reporting year) remain in the enterprise’s turnover, representing the amount of net profit (net profit), i.e. the difference between the final financial result (profit before tax) and the amount used to pay taxes and other payments to the budget.

In turn, net profit can be directed (distributed). At the expense of net profit, in accordance with current legislation and the constituent documents of the organization, reserve capital can be formed. In the process of redistribution, a number of monetary sources of the enterprise’s funds are also formed, having the nature of funds:

Authorized capital (share capital, authorized fund) - is formed when an enterprise is created at the expense of contributions from the founders (participants) or at the expense of property assigned by the owner to the enterprise. The procedure for its formation (minimum amount, terms of contributions, additional attraction of funds) is regulated by law. The authorized capital is intended for the advance of funds into non-current and current assets;

Targeted financing and revenue from the budget - in cases provided for by relevant laws;

Targeted financing and revenues from industry and intersectoral extra-budgetary funds and from other enterprises and individuals for the implementation of targeted activities.

In addition, monetary sources of funds in the form of share premiums and gratuitous receipts, which constitute the monetary part of additional capital, and also of the nature of special reserves, i.e., reserves for upcoming expenses and payments, can also participate in the circulation of funds of the enterprise.

Enterprise finance. State and enterprise finance

Contents and purpose of finance of enterprises (corporations)

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