The finances of organizations are certain monetary relations that arise in the process of compiling and using fixed and working capital. It is on their basis that various monetary funds function.
The finances of budgetary organizations, as well as commercial enterprises, perform a number of functions.
The first is distribution, which consists in their activities in dividing part of the value of GDP, national wealth and income.
The second is the control function of finance, it is expressed in the ability to objectively reflect and control the economic condition of the subject, the entire industry, the national economy. She is able to actively influence their functioning.
The finances of organizations have a number of specific qualities and characteristics.
Firstly, they have a monetary value. Secondly, they have a distributive character. Thirdly, express the compilation and use of all types of profits and savings.
The finances of organizations are of particular importance both for the company itself and for the economy of the Russian Federation:
- They contribute to the formation of economic resources throughout the country, which are used for budgeting and compiling extrabudgetary funds.
- At the level of the company itself, they are able to provide the area of material production. This is due to financial resources, as well as money in order to ensure a continuous process of reproduction.
- At the same staff level, with the help of financial investments, a wage fund is formed. In addition, they contribute to the implementation and functioning of social development programs.
- The finances of organizations ensure a balance in the national economy between monetary and material funds, which are intended for the purposes of accumulation and consumption. They serve as the most important tool in economic stimulation, control over the economy of the whole country, and also act as a management mechanism.
The principles of the organization of company finance are as follows:
- self-financing;
- delimitation of investment and core activities;
- financial independence;
- division of capital into non-current and circulating;
- responsibility, interest and control over the results of financial and economic activities;
- allocation in the sources of working capital for borrowed and own;
- mandatory availability of trust funds.
In accordance with these principles, the organization of the finance of a company of any form of ownership takes place. As a result, resources must be formed in such sizes that will be necessary in order to carry out economic and commercial activities.
This process is necessary at the stage of creating a company by drawing up a statutory fund, the sources of which can be several (share contributions, share capital, manager's own funds, long-term loans, budget funds, grants, etc.).
Properly organized commercial calculation will be able to ensure the economic independence of the company and its prosperity. In the future, an organization mechanism should be formed, that is, a management system of an economic entity in order to achieve maximum profit and high competitiveness.
For this purpose, it is necessary to use financial methods, economic instruments, informational and methodological and legal support in management. The specified mechanism should ensure the most complete and efficient implementation by the finances of their functions.