Functions of the Company's Finance

Finance enterprises associated with the movement of cash flows. Therefore, this concept is often identified with financial resources or even in cash. Of course, not all monetary relations can be attributed to financial ones. This is true only in relation to those monetary relations that are carried out according to the principles of irrevocability, non-equivalence and indefinite, which is possible in the processes of formation, use, distribution of monetary incomes and selected trust funds in the form of financial resources.

The concept and role of finance of the enterprise finance function are closely related.

Enterprise finance is an economic relationship directly related to the circulation of cash flows, the use of income and funds of funds in the production and reproduction process.

The object of finance at the enterprise are all economic relations, in which cash is used and money funds are used. Subjects in these relations are enterprises, audit organizations, non-budget organizations, banks, insurance institutions, investment funds, other legal entities that act as subjects of management.

Financial relations include the relationship associated with the creation of the statutory fund; Formation of monetary incomes, proceeds, profit, other monetary funds of the enterprise and their distribution; Relations of enterprises and the state on tax and other payments to the budget, obtaining subsidies; Relations between enterprises in connection with investment processes, the implementation of share contributions, the receipt of income, the payment of penalties , etc .; Relations of enterprises with banks, insurance organizations for obtaining loans, insurance payments; Relations of enterprises with regard to intra-production income distribution.

The functions of the enterprise's finances are manifested through their essence in the process of reproduction. The main functions of the company's finances are: the formation of resources for production and economic activities; Use and distribution of financial resources in the course of ensuring production, operational, investment activities to ensure financial liabilities that arise before the budget and other business entities, banks; Control over the use and formation of resources in production processes.

The functions of the enterprise finance manifest their internal properties in the course of almost all economic processes that take place in the life of the enterprise, because all of them are mediated by the movement of financial resources in one direction or another.

The functions of the enterprise finance most fully reveal their essence. The majority of specialists believe that two primary functions are inherent in finance: the distribution and control functions. These two functions interact with each other. With the help of the distributive system, the initial capital is formed, the gross domestic product is distributed, the cost proportions are determined in the distribution of incomes, the best combination of the interests of commodity producers, the state and the enterprises themselves is ensured.

Generally, finance is based on the distributional relationships necessary to finance production processes. Violation of the uninterrupted turnover of funds, increase in costs can lead to a decrease in revenues, competitiveness and, consequently, financial stability. To prevent such a phenomenon, the control functions of the organization's finances are necessary .

The control function is responsible for the cost accounting of absolutely all costs for the production of products and their sale, the provision of services, the performance of work, the generation of revenues and their use.