Financial relations are economic relations between entities that arise as a result of the implementation of targeted programs provided by cash. The subjects of financial relations are the enterprises themselves, their owners, shareholders, also suppliers, investors, product buyers, individuals, financial institutions and other counterparties.
The financial relations of enterprises by economic content are grouped in several directions and include several interrelated groups.
These relations arise at the stage of creating an enterprise between its founders. Then, in the process of activity, they are formed and developed between partner enterprises regarding the production and sale of products being created.
This is a relationship with other business entities of the economy of different ownership forms that arise in order to obtain and further distribute revenue and conduct non-operating operations.
These include financial relations of enterprises with contractors, buyers, suppliers, customers that are associated with the payment of work, products or services. Also, these financial relations include any financial decisions in order to eliminate the consequences of violations in the form of fines.
The financial relations of enterprises include relations under lease agreements in connection with payments and acceptance of rents, relations between business entities in order to expand the boundaries of invested funds, relations on the issue of additional shares and other securities, etc.
In addition, the financial relations of enterprises and with individuals regarding the circulation of securities. A special group of financial relations is the interaction of enterprises and workers. Such relations exist regarding the distribution of income and their use, payment of dividends or interest on bonds, etc.
Within the enterprise itself, financial processes are constantly underway to ensure its work and business activities.
Hierarchical financial relations of enterprises are observed in their interaction with subsidiaries, branches and other structural divisions.
The financial relations of enterprises with the state are most clearly traced in the sphere of their relations with the budget and various state funds of extra-budgetary level, as well as by tax control authorities when paying fees, taxes and obligatory payments.
A special link in the financial relations of enterprises is their relationship with financial and credit institutions (factoring companies, commercial banks, etc.). Relations with the banking system are formed in the process of storing money, obtaining bank loans, paying interest on loans, buying or selling currency, making payments on a non-cash basis, etc.
The subjects of financial relations in the form of insurance companies appear when necessary, property insurance, business risks, certain categories of workers and other situations.
Each group of financial relations has features and differs from others in the scope of applications. However, they are all bilateral in nature and carried out under the mandatory condition of the movement of money.
The efficiency of managing financial flows is characterized by such indicators as the period of cash flow (that is, the duration of finding capital in the form of money), the liquidity ratio of cash flow (the ratio of cash inflows for a period to their outflows for the same period), the cash flow efficiency ratio (net flow ratio cash received as the difference between the sum of the inflow and outflow of money to negative cash flow).