Financial relations at enterprises include monetary, economic relations arising as a result of the movement of money and cash flows that are associated with the functioning of cash funds.
Business finance is the foundation of the financial system of the whole country. It is the enterprises that represent the main link in the economic complex of the state. They constitute a whole independent sphere of the country's financial system.
In the field of material production, various financial relations exist and develop, differing in nature. They include such relatively homogeneous financial directions and monetary relations . This is the relationship between the founders during the creation of the enterprise and on the issues of managing its property; between enterprises in the process of internal distribution of financial resources; between parent enterprises and their divisions to establish liability and financial incentives; between enterprises related to the production of products and their further sale (suppliers, buyers, etc.); within individual financial and industrial groups, associations, holdings, which include enterprises; relations with employees (payment of salaries, benefits, dividends, assistance, as well as damages, taxes; between enterprises and the state during the payment of taxes and payments to the budget, the provision of benefits and fines; between organizations and insurance companies; between enterprises and investors, etc. Foreign exchange financial relations arise at enterprises with foreign partners.
The largest in terms of volume of these groups is the group of relations between enterprises related to the general processes of production, redistribution, and sales of products . This includes all financial relations of organizations with customers, suppliers, construction companies, transport organizations, telegraph and mail, customs, foreign trade organizations, and foreign enterprises.
The relations between the enterprises of this group are associated with the sale of products and the acquisition of material plan values for conducting business activities. The role of this particular group of relations is primary, since it is in it that national income is created. It is in the field of material production that enterprises receive revenue and profit. Financial relations in this area have a direct impact on the formation of the final results of operations.
Each of the above groups has its own special features and a separate scope. But they are all characterized by a bilateral character. Their basis is the movement of money. Cash flows participate in the formation of the authorized capital, with them begins the circulation of funds, the formation of funds, etc.
New financial relations are developing in the field of redistribution and capital formation during the merger and separation of organizations. Financial relations include processes of distribution and subsequent redistribution of domestic product and national income. Relationships occur during the creation, use or distribution of financial resources of individual enterprises.
The financial resources include all sources of funds that are available to the enterprise. They are constantly on the move, serviced by the circulation of funds. Financial resources are expressed in the form of cash income, reserves, funds, capital of the enterprise.
So, financial relations begin to exist in the process of circulation of funds in the form of cash flows that are generated by various types of activities. All relations in the field of finance are regulated by the state.