The role of finance in the circulation of fixed and working capital

Introduction 3

Chapter 1. Theoretical aspects of the concept of finance and their organization in the enterprise 5

1.1. Principles of organization of finance of enterprises, their development in market conditions 5

1.2. Financial enterprise resources: their composition and sources of formation 8

1.3. Organization financial work at the enterprise 10

Chapter 2. The role of finance in the circulation of fixed assets 13

2.1. The process of reproduction of fixed assets 13

2.2. Financial support for the reproduction of fixed assets of the enterprise 17

Chapter 3. The role of finance in the circulation of working capital 20

3.1. Circulation of working capital 20

3.2. Finance in the circulation of working capital 22

Conclusion 30

References 32

Introduction

The country's financial system can be represented as a block structure, and its backbone elements (blocks) are: finances of business entities (including commercial banks), public finances, finances of the insurance system, finances in the system financial markets and intermediaries and household finance. The role of these elements is not equivalent, despite the fact that each of the selected blocks plays its own important role in the normal functioning of the financial system, in a market economy, the finances of business entities still have a very obvious dominant.

In organizational terms, the basic cell of the economic system in any country is an economic entity ( entity). Depending on the state policy and the principles of organization of the economy, one or another type of economic entities can play a dominant role in its functioning and development.

As world experience shows, in a real market economy, a special role is played by commercial organizations, i.e. organizations whose main purpose is to make a profit. It is these organizations, figuratively speaking, that create the “pie”, i.e., form the added value, which is further divided between the state, individuals and legal entities.

One of the main components of the financial and economic activity of an enterprise is monetary relations that accompany almost all other aspects of this activity: the supply of raw materials is accompanied by the need to pay for it (advance, immediate or deferred), the sale of products is accompanied by the receipt of money in exchange for the delivered products, the payment of taxes is payments to the budget, receipt (repayment) of a bank loan - by the movement of funds on the accounts of the enterprise, etc. All such monetary relations are just implemented within the financial system of the enterprise.

The relevance of the chosen topic is due to the fact that the transition to a market economy has caused serious changes in the entire financial system and, first of all, its main link - the finances of enterprises. Financial conditions management have undergone significant transformations, which were expressed in the liberalization of the economy, changing forms of ownership, introducing a system of taxation of enterprises, changing the conditions of state regulation.

>The purpose of this work is to consider the finances of enterprises and their role in the circulation of fixed and working capital.

The achievement of the set goal of the work was facilitated by the solution of the following tasks:

Ø study of the essence of finance and the functions they perform in the economy;

Ø consideration of the principles of organization of finance at the enterprise;

Ø show the features of the circulation of fixed and working capital;

Ø Revealing the role of finance in the circulation of fixed and working capital.

To disclose this topic, the work used both regulatory and legal sources of information and the work of domestic authors on this topic, such as G.B. Polyak, V.V. Kovalev, N.F. Samsonov, and others.

The work consists of an introduction, three chapters, a conclusion and a list of references.

Chapter 1. Theoretical aspects of the concept of finance and their organization in the enterprise

1.1. Principles of organization of finance of enterprises, their development in market conditions

The principle of economic independence assumes that the enterprise independently, regardless of the organizational and legal form of management, determines its economic activity, the direction of investment of funds in order to make a profit. In a market economy, the rights of enterprises have significantly expanded, commercial activities investments, both short-term and long-term. The market stimulates enterprises to search for more and more new areas of capital investment, the creation of flexible industries that meet consumer demand. However, one cannot speak of complete economic independence. The state determines certain aspects of the activities of enterprises, such as depreciation policy. So, the relationship of enterprises with budgets of different levels, extra-budgetary funds is regulated by law.

The principle of self-financing means full payback of costs for the production and sale of products, investment in the development of production at the expense of own funds and, if necessary, bank and commercial loans. The implementation of this principle is one of the main conditions entrepreneurial activity that ensures the competitiveness of the enterprise. In developed market countries, enterprises with a high level of self-financing specific gravity own funds reaches 70% or more.

The main own sources of financing for enterprises in the Russian Federation include: depreciation, profit, deductions to the repair fund.

But the total amount of funds of enterprises is insufficient for the implementation of serious investment programs. Currently, not all enterprises and organizations are able to fully implement this principle. Enterprises and organizations in a number of sectors of the national economy, producing products and providing services necessary for the consumer, for objective reasons, cannot ensure their sufficient profitability. These include individual enterprises of urban passenger transport, housing and communal services, Agriculture, defense industry, extractive industries. Such enterprises receive allocations from the budget on different terms.

The principle of liability means the presence of a certain system of responsibility for the conduct and results of economic activity, the financial methods for implementing this principle are different for individual enterprises, their managers and employees of the enterprise. In accordance with Russian legislation, enterprises that violate contractual obligations (terms, product quality), settlement discipline, allow untimely repayment of short-term and long-term loans, redemption of bills, violation of tax laws pay penalties, penalties, fines. In case of inefficient activity, the bankruptcy procedure may be applied to the enterprise. For the heads of the enterprise, the principle of liability is implemented through a system of fines in cases of violation of tax laws by the enterprise. A system of fines is applied to individual employees of the enterprise, deprivation of bonuses, dismissal from work in cases of violation labor discipline, admitted marriage.

The objective necessity of the principle of interest in the results of activities is determined by the main goal of entrepreneurial activity - making a profit. The interest in the results of economic activity is equally inherent in the employees of the enterprise, the enterprise itself and the state as a whole. At the level of individual employees, the implementation of this principle should be ensured by decent wages at the expense of the wage fund and profits allocated for consumption in the form of bonuses, remuneration based on the results of work for the year, for long service, material assistance and other incentive payments, as well as payments to employees of the enterprise interest on bonds and dividends on shares. For an enterprise, this principle can be implemented as a result of the implementation by the state of an optimal tax policy and the observance of economically justified proportions in the distribution of net profit to the consumption fund and the accumulation fund. The interests of the state are ensured by the profitable activities of enterprises.

The principle of providing financial reserves is associated with the need to form financial reserves to ensure entrepreneurial activity, which is associated with risk due to possible fluctuations in market conditions. In a market economy, the consequences of the risk fall directly on the entrepreneur, who independently makes decisions, implements the developed programs with the risk of non-return of invested funds. The financial investments of an enterprise are also associated with the risk of receiving an insufficient percentage of income compared to inflation rates or more profitable areas of capital investment. Finally, there may be direct miscalculations in the development of the production program.

Financial reserves can be formed by enterprises of all organizational and legal forms of ownership from net profit, after paying taxes and other obligatory payments to the budget.

However, funds allocated to financial reserve, it is advisable to store in a liquid form so that they generate income and, if necessary, can be easily converted into cash capital.

1.2. Financial resources of the enterprise: their composition and sources of formation

It is necessary to single out such a concept as capital - part of the financial resources invested in production and generating income at the end of the turnover. In other words, capital acts as a transformed form of financial resources, the financial resources of an enterprise are divided by origin into their own (internal) and attracted on different terms (external).

Own financial resources include profit and depreciation. It should be remembered that not all profit remains at the disposal of the enterprise, part of it in the form of taxes and other tax payments goes to the budget. The profit remaining at the disposal of the enterprise is distributed by decision of the governing bodies for the purposes of accumulation and consumption. The profit allocated for accumulation is used for the development of production and contributes to the growth of the property of the enterprise. Profit directed to consumption is used to solve social problems.

Depreciation deductions represent a monetary expression of the cost of depreciation of fixed production assets and intangible assets. They are of a dual nature, as they are included in the cost of production and, as part of the proceeds from the sale of products, are returned to the settlement account of the enterprise, becoming an internal source of financing for both simple and expanded reproduction.

Attracted, or external, sources of formation of financial resources can also be divided into own, borrowed and budget allocations. This division is due to the form of capital investment. If external investors invest money as entrepreneurial capital, then the result of such an investment is the formation of attracted own financial resources.

Entrepreneurial capital is capital invested in the authorized capital of another enterprise for the purpose of making a profit or participating in the management of the enterprise.

Loan capital is transferred to the enterprise for temporary use on the terms of payment and repayment in the form of bank loans issued on different dates, funds of other enterprises in the form of promissory notes, bonded loans.

Budget allocations can be used both on a non-refundable and reimbursable basis. As a rule, they are allocated to finance government orders, individual investment programs or as a short-term state support enterprises whose production is of national importance.

Financial resources are used by the enterprise in the process of production and investment activities. They are in constant motion and remain in cash only in the form of cash balances on the current account in the bank and in the cash desk of the enterprise.

1.3. Organization of financial work at the enterprise

The activities of the financial service are subordinated to the main goal - ensuring the financial stability of the enterprise, creating sustainable prerequisites for economic growth and profit. The main content of financial work is

Providing financial resources for economic activity;

Organization of relationships with the financial and credit system and other business entities,

Conservation and rational use fixed and working capital;

Ensuring the timeliness of payments for the obligations of the enterprise to the budget, banks, suppliers and employees. In other words, the essence of financial work is to ensure the circulation of fixed and working capital and the maintenance of financial relations that accompany commercial activities.

The most important areas of financial work at the enterprise are:

financial planning,

operational work;

Control and analytical work.

Financial planning occupies an important place in the organization of the financial activities of an economic entity. In the course of financial planning, each enterprise comprehensively assesses its financial condition, determines the possibility of increasing financial resources and identifies areas for their most effective use. Financial planning is carried out on the basis of the analysis of information about the finances of the enterprise obtained from accounting, statistical and management reporting.

In the planning area, the financial service performs the following tasks:

Development of draft financial and credit plans with all necessary calculations;

Determining the need for own working capital;

Identification of sources of financing of economic activity;

Development of a capital investment plan with the necessary calculations;

Participation in the development of a business plan,

Drawing up cash plans;

Participation in the preparation of plans for the sale of products in monetary terms and the determination of the planned amount of balance sheet profit for the year and quarters and the calculation of profitability indicators.

In area operational work the financial service solves numerous tasks, the main of which are the following:

Provision in deadlines payments to the budget, interest payments on short-term and long-term bank loans, wages employees and other cash transactions, payment of suppliers' invoices for shipped inventory items, services and work;

Making loans in accordance with the agreements;

Maintaining daily operational records: sales of products, profit from sales, other indicators of the financial plan;

Drawing up information on the receipt of funds and certificates on the progress of the financial plan and financial condition indicators.

Great importance in the enterprise should be given to control and analytical work, since its effectiveness largely determines the result of financial activity. Financial services constantly monitor the performance of indicators of financial, cash and credit plans, plans for profit and profitability, monitor the use of equity and borrowed capital for the intended purpose, and the targeted use of bank credit.

The financial service is part of a single mechanism for managing business activities, and therefore it is closely related to other services of the enterprise.

So, as a result of close contacts with the accounting department, production plans, lists of creditors and debtors, documents on the payment of wages to employees are submitted to the financial service. In turn, the financial service acquaints the accounting department with financial plans and analytical reports on their implementation.

From the marketing department, the financial service receives plans for the sale of products for income planning and the preparation of operational financial plans, cost estimates using the FOSTIS system. To conduct a successful marketing campaign, the financial service approves a system of concessions in the contract price, analyzes sales and marketing costs, thus creating conditions for concluding large transactions.

With the development of market relations based on a variety of forms of ownership, the rights of an enterprise to complete economic independence and access to foreign markets, a qualitatively new task is set before the financial service - the organization of effective management of financial resources, taking into account methods adequate to a market economy.

Chapter 2. The role of finance in the circulation of fixed assets

2.1. The process of reproduction of fixed assets

Conventionally, the functions of the financial service for the management of fixed assets can be divided into the following:

1) financial analysis and evaluation of the efficiency of use (of existing fixed assets;

2) determination (optimization) and balancing of costs and sources of financing of simple and different means;

3) stimulating the attraction and effective use of fixed assets for the scientific and technical development of production.

The ultimate goal of the analysis of fixed assets, regardless of the industry of the enterprise, is to identify opportunities for expanding production and sales volumes without additional attraction of resources, i.e. determination of the optimal need for renewal or expansion of production capacity.

The analysis of fixed assets can be carried out on several and etchings, the development of which in combination allows you to give a beeper of the structure, dynamics and efficiency of the use of fixed assets and long-term investments. The methodology for analyzing fixed assets is aimed at choosing the best option for their use.

Therefore, the main features of the analysis are: 1) the variability of decisions on the use of fixed assets and 2) focus on the future, ensuring their timely and effective updating. The renewal and growth of fixed production assets can be financed by their mixed financing. Determining the required amount of financing, choosing the most appropriate forms for the enterprise and optimizing the structure of funding sources are subject to the general goals of the policy of managing fixed production assets.

A separate chapter of this textbook is devoted to the methodology of financial analysis for the enterprise as a whole. It also covers the analysis of non-current assets, reflecting the cost of financial investments in fixed assets, as well as an analysis of the sources of these investments.

Here we will focus on special financial indicators for evaluating the effectiveness of existing fixed assets: capital productivity, capital intensity, capital-labor ratio and, of course, a generalizing indicator - the profitability of fixed assets.

Evaluation of the effectiveness of the use of fixed assets is based on the principle of commensuration of the products sold by them with the totality of the applied fixed assets. This will be capital productivity, indicator of the volume of production attributable to 1 rub. value of fixed assets.

In calculating the performance indicators for the use of basic funds, it is advisable to take their residual value; since industrial enterprises operate worn-out buildings, equipment, etc., even with zero residual value, they continue to function for many years. It is unlawful not to take them into account when determining the average annual cost of fixed assets.

The decisive influence on the return on assets, in addition to the volume of sales, has a production capacity.

Under production capacity the enterprise is understood as the ability of the means of labor assigned to it, the technological aggregate of machines, equipment, units, installations and production areas to maximize the output of products in accordance with the established specialization, cooperative production and mode of operation.

When determining the production capacity of an enterprise, one should proceed from the need for intensive use of equipment and space to ensure the maximum output of products profiled for the enterprise. The calculation does not take into account equipment downtime or underutilization of space caused by a lack of work force, raw materials, fuel, electricity, organizational and technical problems, as well as loss of working and machine time associated with defects in production. Only technological inevitable losses are taken into account, the size of which is established by technology and production standards.

Production capacity changes over time and is determined by enterprises on two dates: input - on January 1 of the planned year; day off - on January 1 next year. The increase in production capacity is determined on the basis of a plan of activities carried out during the year:

Mechanization and automation of production;

Process improvements;

Installation of new and replacement of obsolete equipment, tools, fixtures;

Carrying out specialization and improving the cooperation of production;

Improving the quality and composition of the raw materials used;

Raising the level of organization of labor and production.

The plan for output from existing production facilities is substantiated by the calculation of the average annual production capacity and the planned coefficient of its use. This coefficient can be increased as a result of the implementation of the plan for the technical and organizational development of production.

Another indicator of the efficiency of the use of fixed assets is − capital intensity, the reciprocal of capital productivity. It shows the share of fixed assets attributable to each ruble of manufactured (sold) products. If the marginal capital intensity is less than one, there is an increase in the efficiency of the use of fixed assets and an increase in the utilization rate of production capacities. The decrease in the capital intensity of production indicates an increase in the efficiency of the use of fixed assets. If the capital intensity should tend to decrease, then the return on assets should tend to increase.

Return on assets is closely related to labor productivity and capital-labor ratio, which is characterized by the value of fixed assets per employee. This indicator, like capital intensity, is inversely proportional.

Finally, the indicator profitability fixed assets (or non-current assets) can be calculated as a percentage of profit (in any calculation convenient and required for efficiency analysis) or its increase in the average annual value of the relevant assets.

Recall that this indicator has a wide range of applications in financial management - from a general assessment of the effectiveness of existing or projected fixed assets (capital) or individual objects of these funds to the criterion for choosing an investment project. In this latter case, the profit margin can be used as a discount factor. But for greater accuracy of the calculation, it should be adjusted for the effect of financial leverage, and in the case of a plurality of “cost-different” sources of own and borrowed funds invested in this project, for their weighted average cost.

2.2. Financial support for the reproduction of fixed assets of the enterprise

Financial support for simple and extended reproduction of fixed assets covers all the functions of financial management in the field of fixed capital management.

Contrary to the widespread in the literature and practice, this category is limited by the selection and mobilization of monetary sources of the corresponding costs.

In fact, the management process begins with a financial analysis of the state of fixed assets, the provision of existing production with them, and an assessment of the effectiveness of their use. This assessment affects not only the existing, but also the fixed assets planned for implementation, i.e. efficiency investment projects justifying their choice.

The performance indicators themselves, as we have seen, affect the ratio of costs and income, or rather, measures of financial impact, first of all, on cost optimization, and only then - the sources of their coverage. The natural financial regularity of the correspondence of income and expenses (recall the principles of their balancing) dictates the need for a priority "inventory" of costs, or the amount of financing for simple and extended reproduction of fixed assets, and only further - the mobilization of reliable sources: the more economical the costs, the less financial resources will have to be diverted to the process of financing the reproduction of fixed assets.

In turn, the optimization of costs and sources of their financing is based on measures of financial impact, or on stimulating the effectiveness of these processes, which is the scope of the functioning of financial management.

There are various forms of simple and extended reproduction of fixed assets.

Forms of simple reproduction - the replacement of obsolete means of labor and overhaul. Enterprises have the right to create a repair fund along with the depreciation fund. The annual amount of deductions to it is determined by the enterprise according to independently approved standards and covers all types of repairs.

The creation of an amortization and repair fund today, unlike in the past, is by no means regulated by financial legislation: you can not create it, but finance, for example, current repairs from current proceeds from sales, and capital repairs - in case of a shortage of own funds - for a credit account or, say, one-time receipts from the disposal of fixed assets.

Nevertheless, the expediency of the formation of a repair fund and, consequently, the reliability of financial support for the uninterrupted operation of the equipment fleet is based on the familiarity and effectiveness of a team contract. In practice, this means the transfer of the repair fund to the service of the chief mechanic of the enterprise, which stimulates the economical spending of the fund, because the brigade is rewarded with the saved funds.

At the same time, the financial freedom that has come in Russia requires from the financial manager, with any concept, more strict and constant control both over the completeness and timeliness of the receipt of financial resources, and over the direction of their investments or advance payments, including, of course, the cost of insuring the risk of losses. , and income from effective investment (for example, in promissory notes or other deposits) temporarily free, accumulated through funding funds.

The forms of expanded reproduction of fixed assets include new construction, expansion of existing enterprises, their reconstruction and technical re-equipment, equipment modernization, the introduction of other scientific and technical progress measures, which are generally referred to as direct (real, physical) investments, or capital investments.

Each of these forms solves certain problems. Due to new construction, new enterprises are put into operation, in which all elements of fixed assets meet the modern requirements of technical progress, the problem of the correct distribution of production forces is solved. However, financial preference is given to the reconstruction and technical re-equipment of existing enterprises, especially during a period when there is a decline in production and many enterprises stop their activities due to lack of funds.

During reconstruction, the main part of capital investments is directed to the improvement of the active part of the funds using old industrial buildings, construction. An increase in the share of equipment costs makes it possible, with the same amount of capital investment, to obtain a greater increase in production and, on this basis, to increase labor productivity and reduce the cost of production. But this is not the only thing: the very volume of costs and the time for their implementation (ie, the approach of commissioning) provide significant savings in financial resources.

In the process of financing the renovation certain types fixed production assets one of the most challenging tasks financial management presents a choice alternative: the acquisition of fixed assets in the property or their lease. In any case, the criterion for the financial manager's decision is the profitability of fixed assets or non-current assets.

Chapter 3. The role of finance in the circulation of working capital

3.1. Circulation of working capital

The essence of working capital is determined by their economic role, the need to ensure the reproduction process, which includes both the production process and the circulation process.

Working capital of the enterprise, participating in the process of production and sale of products, make a continuous circuit. At the same time, they pass from the sphere of circulation to the sphere of production and vice versa, taking the form of circulation funds and circulating production funds.

Thus, passing through three phases of the production cycle, working capital changes its natural-material form.

In the first phase (D - T), working capital, which has the original form of cash, is converted into inventories, that is, they pass from the sphere of circulation to the sphere of production. In the second phase (T ... P ... T 1), working capital participate directly in the production process and take the form of work in progress, semi-finished products and finished products. In the third phase of the circuit (T 1 - D 1), working capital again takes the form of cash. Thus, making a complete cycle (D - T ... P ... T 1 - D 1), working capital operates at all stages simultaneously, which ensures the continuity of the production and circulation process. The circulation of working capital is an organic unity of its three phases.

In the process of production activity, there is a constant transformation of individual elements of working capital. The company buys raw materials and supplies, manufactures products, then sells it, usually on credit, resulting in accounts receivable, which after a certain period of time turns into cash. This circulation of funds is shown in Fig. 1.1.

Finished products

Rice. 1.1. Circulation of current assets

Unlike fixed assets, which are repeatedly involved in the production process, working capital operates in only one production cycle and fully transfers its value to the entire manufactured product.

In the practice of planning, accounting and analysis working capital can be subdivided according to the following features:

1. Depending on the functional role in the production process - revolving funds and circulation funds. Circulating production assets function in the production process, and circulation funds in the sphere of circulation, that is, the sale of finished products and the acquisition of inventory items. The largest share is circulating production assets involved in value creation. The value of circulation funds should be sufficient to ensure a clear and rhythmic process of circulation. Working capital includes production stocks (raw materials, materials, fuel), work in progress, semi-finished products of own production, deferred expenses. Circulation funds are finished products and goods for resale, goods shipped, cash, settlements with enterprises and organizations. Such a division is necessary for a separate analysis of the residence time of working capital in the areas of circulation and production.

To ensure an uninterrupted process of production and sale of products, each enterprise must have both working production assets and circulation funds.

The financial position of the enterprise is directly dependent on how quickly the funds invested in real assets are converted into real money. The most important indicator of the intensity of the use of working capital is the speed of their turnover.

The turnover of working capital is the duration of one complete circulation of funds, starting from the first and ending with the third phase. The faster working capital goes through these phases, the more products the company can produce with the same amount of working capital. For different business entities, the turnover of working capital is different. It depends on the specifics of production and sales conditions for products, features in the structure of working capital, the solvency of the enterprise and other factors.

3.2. Finance in the circulation of working capital

Working capital is the assets of an enterprise that are renewed with a certain regularity to ensure current activities, investments in which, at least once, are turned over during a year or one production cycle, if the latter exceeds a year. Under the investment turnover in this case it implies the transformation of working capital, which occurs at the enterprise cyclically, one cycle of which can be represented as follows: (a) funds are invested in inventories; (b) inventory goes into production; (c) manufactured products are delivered to the warehouse; (d) the finished product is shipped to the buyer; (e) funds for the sold products are credited to the seller's account; (f) funds are reused for the purchase of raw materials and materials, etc.

Allocate the following enlarged components of current assets that are important in the financial management system: inventories, receivables, cash and cash equivalents. As with other management objects that are within the scope of interests of the financial manager, this is not about the subject-material composition of current assets, but about the policy of optimal management of investments in these assets. Consider sequentially the features of managing individual elements of current assets.

Productive reserves. In the financial management system, this object is understood in a broader aspect than just the raw materials and materials necessary for the production process. It also includes work in progress, finished products, goods for resale, etc. For financial managers and analysts, the subject-material nature of stocks does not have special significance; only the total amount of money “dead” in stocks during the technological (production) cycle is important; that is why it is possible to combine these seemingly heterogeneous assets into one group.

Inventory management is of great importance, both technologically and financially. From the position of financial management of an enterprise, stocks are immobilized funds, i.e., funds, in a certain sense, diverted from circulation. It is clear that one cannot do without such a forced immobilization, but it is quite natural to want to minimize the indirect losses caused by this process, with a certain degree of conventionality, numerically equal to the income that could be obtained by investing the appropriate amount in some alternative project (for example, an alternative to "deadening"). » funds in stocks is the placement of some of them in a bank at interest or the purchase of liquid securities). By the way, these indirect losses under certain circumstances can become direct. Studies show that in the event of a forced sale of assets, for example, in the event of a company’s bankruptcy, many working capital “suddenly” fall into the category of illiquid assets, and the amount received for them can be much lower than the book value.

Formalization of inventory management policy requires answering the following questions: (a) is it possible in principle to optimize the inventory management policy; (b) what is the minimum required inventory; (c) when to order the next batch of supplies; (d) what should be the optimal quantity of the ordered lot?

The answers to all these questions are given in the theory of inventory management. In particular, it is shown that, under certain restrictions and assumptions, it is possible to calculate the size of the optimal order lot.

Within the framework of this theory, order management schemes have also been developed that allow using a number of parameters to formalize the inventory renewal procedure, in particular, to determine the inventory level at which it is necessary to place the next order.

Accounts receivable. Unlike inventories and work in progress, which are quite static and cannot be changed dramatically, since they are largely determined by the essence of the technological process, accounts receivable is a highly variable and dynamic element of working capital, significantly depending on the policy adopted by the company for product buyers. Since accounts receivable is an immobilization of own working capital, i.e., in principle, it is unprofitable for the enterprise, therefore, the conclusion about its maximum possible reduction is obvious. Theoretically, receivables can be reduced to a minimum, however, this does not happen for many reasons, including competition.

From the point of view of reimbursement of the cost of the delivered products, the sale can be carried out in one of three ways 2: (a) prepayment (the goods are paid in full or in part before the seller hands them over), (b) cash payment (the goods are paid in full at the time the goods are handed over, i. e. there is a kind of exchange of goods for money), (c) payment on credit (the goods are paid for after a certain time after it is transferred to the buyer).

In a market economy, it is the latter method that is the main one and is usually carried out in the form of non-cash payments, the main forms of which are a payment order, a letter of credit, collection settlements and a settlement check. The latter scheme is the most unprofitable for the seller, since he has to lend to the buyer, but it is precisely this scheme that is the main one in the system of payments for delivered products. When paying with a deferred payment, it is precisely accounts receivable for commodity transactions that arise as a natural element of such a generally accepted settlement system.

When developing a lending policy for buyers of its products, the company must decide on the following key issues:

The term for granting a loan (most often, a company has several standard agreements that provide for a deadline for paying for products);

Credit standards (criteria by which the supplier determines the financial solvency of the buyer and the resulting possible options payment);

The system of creating reserves for doubtful debts (it is assumed that, no matter how the system of working with debtors is debugged, there is always a risk of non-receipt of payment, at least due to force majeure; therefore, based on the principle of caution, it is necessary to create a provision for losses due to insolvency in advance buyer);

Payment collection system (this includes procedures for interacting with buyers in case of violation of payment terms, a set of criterial values of indicators indicating the significance of violations in payment, a system for punishing unscrupulous counterparties, etc.);

The system of discounts provided (in a market economy, it is common practice to provide discounts in the case of an agreed and fairly short period of payment for the delivered products).

An effective system for establishing relationships with buyers implies: (a) a qualitative selection of clients to whom credit can be granted; (b) determination of optimal lending conditions; (c) a clear complaints procedure; (d) monitoring how customers fulfill the terms of contracts.

No matter how effective the buyer selection system is, in the course of interaction with them all kinds of overlays are not excluded, so the enterprise is forced to organize some system of control over the fulfillment of payment discipline by buyers. This system, called the system of administration of relations with buyers, implies: (a) regular monitoring of debtors by type of product, amount of debt, maturity, etc.; (b) minimization of time intervals between the moments of completion of work, shipment of products, presentation of payment documents; (c) sending payment documents to the proper addresses; (d) diligent consideration of customer requests for payment terms; (e) a clear procedure for paying bills and receiving payments.

Cash. In a market economy, the importance of cash and cash equivalents is determined by the following reasons: routine (the need for cash support for current operations), precaution (the need to repay unforeseen payments), speculativeness (the possibility of participating in an unforeseen profitable project). An effective cash management system implies the allocation of four large blocks of procedures that require a certain attention of the financial manager: (a) calculation of the financial cycle; (b) cash flow analysis, (c) cash flow forecasting, (d) determining the optimal level of cash.

Cash equivalents. This term describes liquid marketable securities that can be converted into cash with a minimum time lag. "Live" money is necessary for any enterprise; At the same time, since the cash balance optimization models listed above are highly theorized, in practice they are usually guided by common sense when choosing which part of mobile assets to keep on a current account and which part to place temporarily in securities. As a result of such a policy, short-term financial investments are formed on the balance sheet of the enterprise.

Any most complex financial transaction is a combination of two elementary actions - investing and borrowing, and the effectiveness of the operation is estimated by the interest rate. Investing means investing in the hope of getting sufficient cash flow in the future; borrowing - raising funds with the intention of investing them profitably in a well-known project, due to which it will be possible to pay off the creditor in the future. Most often, such operations are extended in time, i.e., they extend over several basic intervals.

The formation of a portfolio of securities, as well as any transactions with individual financial assets, is based on the application of a number of formalized criteria. These criteria are based on (a) the concept of the time value of money and (b) methods for estimating time-distributed cash flows.

monetary resources involved in any financial transaction, have a temporal value, the meaning of which can be expressed by the following maxim: currency unit available to the investor in this moment time, is more preferable than the same monetary unit, but expected to be received in some future. In principle, deviations from the formulated rule are possible, but they are rather abstract in nature (as an example, we can cite the situation when the available interest rate is zero). The reason is obvious - money must constantly multiply, that is, generate income.

By investing money in some security, the investor believes that the initial investment will pay off with subsequent earnings (interest, dividends). Thus, a time-distributed cash flow is personified with a financial asset, consisting of the initial investment, i.e., the cost of purchasing a security, and some income generated by it in the future at regular basic intervals. Obviously, from the formal point of view, the operation is profitable if, at least, the amount of income, taking into account the time factor, exceeds the amount of investment.

Insofar as individual elements cash flow are not comparable to each other due to the time value of money, i.e., a simple summation of the elements of the flow is impossible, special operations are used - accumulation and discounting. In the first case, all elements of the cash flow are brought to the end of the financial transaction, in the second - to its beginning. In both cases, the compound interest scheme is used, which involves the capitalization of interest.

The increment operation is designed to answer the question: what amount can be obtained in k base periods when investing the amount at an interest rate; the discounting operation answers the question: what is the equivalent of the amount expected to be received in k base periods if the acceptable profitability of the financial operation is equal.

A financial asset, like any commodity sold on the market, has several characteristics that determine the feasibility of buying/selling transactions with this specific commodity. Unlike conventional consumer goods, financial assets are acquired not for the purpose of their actual consumption, but with the intention to further receive either the regular income generated by this asset (for example, interest, dividends) or speculative income (income from purchase / sale operations). Therefore, such characteristics of a financial asset as cost, price, profitability, risk are of the greatest interest.

An investor, when making a decision on the expediency of acquiring a particular financial asset, tries to evaluate the economic efficiency of the planned operation. It is quite obvious that in this case he can focus on either absolute or relative indicators. In the first case, we can talk about the price and (or) value of the asset, in the second - about its profitability.

Conclusion

The modern Russian economy is distinguished by the emergence of a huge number of enterprises of various forms of ownership and nature of activity, the growth and complexity of economic relations - which in turn leads to a significant increase in the volume of financial work. At the same time, this entails a significant change in the role and importance of financial work in the activities of the enterprise, the underestimation of which can lead to a loss of financial stability and the onset of bankruptcy of the enterprise.

The organization of the finances of an enterprise is based on certain principles: economic independence, self-financing, liability, interest in the results of activities, the formation of financial reserves.

The financial resources of enterprises are a set of their own cash income and receipts from outside (attracted and borrowed funds) intended to fulfill the financial obligations of the enterprise, finance current costs and costs associated with the expansion of production.

To organize financial work, an economic entity creates a special financial service.

In financial terms, an enterprise can be represented as the totality of cash inflows and outflows that occur as a result of previously made investments. In order for the totality of these flows to be optimal, in any enterprise a certain organizational structure financial management. This structure is designed not only to optimize the resource flow, but also to ensure the implementation of the main functions of finance.

The ultimate goal of the reproduction of fixed assets, regardless of the industry of the enterprise, is to identify opportunities for expanding production and sales volumes without additional attraction of resources, i.e. determination of the optimal need for renewal or expansion of production capacity.

Working capital management is of great importance, both technologically and financially. From the position of financial management of an enterprise, working capital is funds, i.e., funds involved in turnover in a certain sense.

Financial support for simple and extended reproduction of fixed and working capital covers all the functions of financial management in the field of capital management.

List of used literature

1 Analysis of the economic activity of the enterprise: Proc. Benefit / Under the total. ed. L.L. Ermolovich. - Minsk: Interpressservice; Ecoperspektiva, 2003. - 576p.2 Analysis of economic activity in industry / Rusak N.A., Strazhev V.I., Miguk O.F. and etc.; Under total ed. V. I. Strazheva. - 4th ed., Rev. and additional - M.: Higher. school., 2002. - 398 p.3 Blank I.A. Fundamentals of financial management. T.2. -K.: Elga, Nika-Center, 2004.- 624 p.4 Gruzinov V.P., Gribov V.D. Enterprise Economics: Proc. allowance - 2nd ed., and additional - M .: Finance and statistics, 2002. - 208 p. 5 Zaitsev N.L. Economics of an industrial enterprise, Textbook; 2nd ed., revised. and additional - M: INFRA-M, 2003. - 259 p.6 Keiler V.A. Economics of the enterprise: Course of lectures.- M.: Infra-M, Novosibirsk: ITAEiU, 1999.- 132 p.7 Kovalev V.V. Introduction to financial management. - M.: Finance and statistics, 2004. - 768 p.8 Kovalev V.V., Volkova O.N. Analysis of the economic activity of the enterprise: Textbook. - M.: TK Welby, Prospekt Publishing House, 2004. - 424 p.9 Kovalev A.I., Privalov V.P. Analysis of the economic state of the enterprise M.: Center for Economics and Marketing, 2004. - 216 p.10 Lyubushin N.P., Leshchev V.B., Dyakova V.G. Analysis of the financial and economic activities of the enterprise: Proc. manual for universities / Ed. prof. Lyubushina N.P. - M.: UNITY-DANA, 2002. - 417p.11 Pavlova L.K. Enterprise Finance: Proc. for universities / Pavlova L.K. - M .: Finance: Unity, 2001. - 639 p.12 Savitskaya G.V. Analysis of the economic activity of the enterprise: Textbook. - 2nd ed., corrected. and additional - M.:, INFRA-M, 2004 - 344 p.13 Selezneva N.N. Financial analysis: Proc. Manual for universities. - M .: Unity-DANA, 2002. - 479 p.14 Management of organizations: Textbook / Edited by A.G. Porsheva, Z.P. Rumyantseva, N.A. Salomatina. - 3rd ed., revised. and additional - M.: INFRA - M, 2003. - 716 p.15 Finance, monetary circulation and credit: Textbook. - 2nd ed., revised. and additional / VK. Senchagov, A.I. Arkhipov. - M.: TK Welby, Prospekt Publishing House, 2004. - 720 p.16 Financial management: Textbook for universities / Ed. prof. N.F. Samsonov. - 2nd ed., add. - M.: UNITI - DANA, 2004. - 415 p.17 Financial management: Textbook for universities / Ed. acad. G.B. Pole. - 2nd ed., add. - M.: UNITI - DANA, 2004. - 527 p.18 Enterprise Finance: Textbook / N.V. Kolchina, G.B. Polyak, L.P. Pavlova and others; Ed. prof. N.V. Kolchina. - M.: Finance, UNITI, 2003. - 413 p.19 Sheremet A.D., Saifulin R.S. "Methodology of financial analysis", Moscow, "INFRA-M", 2001 - 176p.20 Shulyak P.N. Enterprise Finance: Textbook. - 5th ed., revised. and additional - M .: Publishing and trading corporation "Dashkov and K 0", 2005. - 712 p.21 Economic analysis: Textbook for universities / Ed. L.T. Gilyarovskaya. - 2nd ed., add. - M.: UNITI - DANA, 2003. - 615 p.

22 Economics of the organization (enterprise): Textbook / Ed. ON THE. Safronov. - 2nd ed., revised. and additional - M.: Economist, 2004 - 618 p.

23 Business Economics: Textbook. - 3rd ed., revised. and additional / Semenov V.M., Baev S.A., Terekhova S.A. - M.: Center for Economics and Marketing, 2002. - 360 p. prof. V.Ya. Gorfinkel, prof. V.A. Shvandar. - M.: UNITI - DANA, 2003. - 461 p.

Finance, monetary circulation and credit: Textbook. - 2nd ed., revised. and additional / VK. Semenov, A.I. Arkhipov and others - M .: TK Welby, Prospekt Publishing House, 2004. - p. 35

Economics of the organization (enterprise): Textbook / Ed. ON THE. Safronov. - 2nd ed., revised. and additional - M.: Economist, 2004. - p. 490

Blank I.A. fundamentals of financial management. T1. - 2nd ed., revised. and additional - K .: Elga, Nika - Center, 2004. - p. 57

Financial management: Textbook for universities / Ed. akal. G.B. Pole. - 2nd ed., revised. and additional - M.: UNITI - DANA, 2004. - p. 225

Financial management: Textbook for universities / Ed. akal. G.B. Pole. - 2nd ed., revised. and additional - M.: UNITI - DANA, 2004. - p. 230

Shulyak P.N. Enterprise Finance: Textbook. - 5th ed., revised. and additional - M .: Publishing and trading corporation "Dashkov iK o", 2005. - p. 207

Financial management: Textbook for universities / Ed. prof. N.F. Samsonov. - 2nd ed., revised. Idop. - M.: UNITI - DANA, 2004. - p. 264

Finance. Textbook / Ed. prof. V.V. Kovalev. - M.: PBOYUL M.A. Zakharov, 2002. - p. 370

Finance. Textbook / Ed. prof. V.V. Kovalev. - M.: PBOYUL M.A. Zakharov, 2002. - p. 373

However, state of the art economy of the republic, limited centralized financial resources do not allow allocating large funds for the development of state enterprises.

World experience shows that in such situations the state is forced to attract foreign capital. But this requires serious state guarantees that provide legal protection for investments and a favorable regime for their activities, which would encourage investors to invest in the development of the republic's economy.

2. The role of finance in the circulation of fixed production assets and working capital

The activities of state and non-state enterprises are connected with the use of fixed and working capital, which are part of the authorized capital. Having formed the enterprise, it begins to function as an independent legal entity.

The size of the authorized capital is reflected in the balance sheet, the initial financial capacity of the enterprise depends on the size of this fund.

Fixed and current assets are two parts of the authorized capital. At the same time, the mechanism of their use is different.

Fixed assets - cash invested in fixed assets. Fixed assets wear out over time. If at the initial stage the sizes of fixed assets and fixed assets are the same, then as the statutory fund in terms of fixed assets is depreciated, it is reduced by the amount of depreciation. At the same time, an amortization fund is formed for the reproduction of worn-out fixed assets.

State budget funds serve as the initial source of investment in production at a state enterprise. Then the production activity of the enterprise is carried out at the expense of internal financial resources and, above all, the enterprise's own capital, as well as borrowed funds. Own capital of the enterprise is divided into constant (authorized) and variable. Variable capital largely depends on the financial activities of the enterprise, the volume of products, their prices and other factors.

The target source of capital investments are depreciation charges. Depreciation according to the norms established by the state is charged on the balance sheet value of fixed assets on a monthly basis and is included in the cost of manufactured products and, after its sale, is materialized in cash as part of the proceeds from sales. The funds received in this way are accumulated in the depreciation fund, and after the expiration of the life of the fixed assets, they are used for reproduction.

The depreciation rate is the percentage value of fixed assets, which, taking into account the standard terms of their service, is transferred to finished products for the year.

In conditions of inflation, difficulties may arise with the reproduction of depreciated fixed assets, since depreciation amounts are depreciated. As a way out, accelerated depreciation is used, but in conditions of low solvency of consumers, this is not always justified, since it increases the cost and price of products. At the same time, the history of the United States shows that the rise in production is possible only on the basis of a radical upgrade of equipment. Significant resources were mobilized for these purposes, of which approximately 40% were depreciation charges received as a result of accelerated depreciation. The remaining 60% of investments were long-term bank loans and equity.

The second most important source of investment in fixed assets after depreciation is profit. Successfully operating enterprises that make a profit have the opportunity to invest in the renewal of the enterprise, modernize production, and expand the production of competitive products on a new technical basis. State-owned enterprises, in addition to their own resources, can receive funds from sectoral investment funds and budget allocations.

A large role in financing capital investments is called upon to play a long-term bank loan, the scope of which is currently expanding in the Republic of Belarus.

In addition to the financial resources of enterprises and the state, it is possible to attract foreign investment, which implies state guarantees, legal protection of investments, a favorable regime for their use, stimulating investors to invest in the development of the economy of the Republic of Belarus.

Working capital is invested in working capital and circulation funds of enterprises.

In the process of turnover of working capital, cash resources from the current account are used to purchase raw materials, materials, spare parts, fuel and other components, to create their stocks in the amount necessary to maintain the rhythmic production of products. Depreciation deductions, wages with accruals, expenses for the repair of fixed assets, some taxes and other costs included in the cost of production are added to the value of the material assets received in production. As a result, the value of work in progress is formed.

After the completion of the production process, the finished product goes to the warehouse, where it is in stock until batches are issued for delivery to consumers. The cycle ends with payment for finished products by consumers and is repeated in subsequent cycles.

Thus, working capital is in constant circulation, at any given moment they are simultaneously embodied in fixed assets and circulation funds. The faster the turnover of working capital, the greater the effect they bring to the owner.

Sources of formation of working capital are: own resources of the enterprise, fixed in its authorized capital, profit, accounts payable and borrowed funds.

3. Cash income and profits of enterprises

The cash income of enterprises consists of the proceeds of products, works, services; other sale of fixed assets, surplus raw materials, spare parts, production waste, intangible assets, non-operating income in the form of fines received, dividends by sections, interest for keeping money on settlement, deposit accounts in a bank, in promissory notes, rent for the delivery of property and from others receipts.

The main source of financial resources is the proceeds from the sale of products. Importance in financial management is attached to ensuring its full and timely receipt. The amount of proceeds from sales depends on the volume of products sold and the price. Manufacturers' free selling price is based on the full cost of production, includes profit and tax surcharges. The amount of profit in the price of a product is determined by its quality, consumer properties and market conditions.

Income received by the enterprise, serve as a source of formation of centralized funds in the financial resources of the state, sectoral funds and cash funds of enterprises. At the enterprise, at the expense of the income received, the following is formed: profit, depreciation fund, wage fund, reserve funds and other financial resources that provide a complex of production and non-production needs.

The size of the authorized capital is reflected in the balance sheet, the initial financial capacity of the enterprise depends on the size of this fund.

Fixed and current assets are two parts of the authorized capital. At the same time, the mechanism of their use is different.

The depreciation rate is the percentage value of fixed assets, which, taking into account the standard terms of their service, is transferred to finished products for the year.

A large role in financing capital investments is called upon to play a long-term bank loan, the scope of which is currently expanding in the Republic of Belarus.

Working capital is invested in working capital and circulation funds of enterprises.

Sources of formation of working capital are: own resources of the enterprise, fixed in its authorized capital, profit, accounts payable and borrowed funds.

2. The role of finance in the circulation of fixed production assets and working capital

The size of the authorized capital is reflected in the balance sheet, the initial financial capacity of the enterprise depends on the size of this fund.

Fixed and current assets are two parts of the authorized capital. At the same time, the mechanism of their use is different.

The depreciation rate is the percentage value of fixed assets, which, taking into account the standard terms of their service, is transferred to finished products for the year.

A large role in financing capital investments is called upon to play a long-term bank loan, the scope of which is currently expanding in the Republic of Belarus.

Working capital is invested in working capital and circulation funds of enterprises.

Sources of formation of working capital are: own resources of the enterprise, fixed in its authorized capital, profit, accounts payable and borrowed funds.

And the associated public spending exacerbated many economic and social problems, while the state budget deficit and the growth of public debt increased inflation. In the neoconservative theory of public finance, taxes are given priority because they determine the amount of savings and investment. In their opinion, strategic tasks should be solved through taxes...

Funds in centralized and decentralized funds of financial resources, bringing them to the recipient, economical and targeted use. In the theory of finance, there are: a) strategic, or general, management; b) operational management. Strategic management is expressed in the determination of financial resources through forecasting for the future, establishing the amount of financial resources for ...

Relations are expressed in various economic forms: relations related to the distribution of the monetary form of the value of a social product constitute the content of the category of finance, and relations arising in the process of commodity circulation on the basis of systematically performed acts of sale and purchase take the form of calculations carried out by means of money as a universal equivalent. and prices like...

shocks (e.g. the Great Depression in the United States in the 1930s, recent financial crises in South America, Asia, Japan, etc.). 1.3. The emergence and development of financial markets It is easy to see that the core of the neoclassical theory of finance is the systematization of knowledge about the principles of the functioning of financial markets and, in particular, theoretical constructions and practical tools with ...

The role of finance in the circulation of fixed production assets

Fixed assets - a set of consumer values for production and non-production purposes, which are used over a number of years, gradually wear out, but do not lose their physical form during their service life.

Classification of fixed assets

1. By scope:

1) production fixed assets,

2) non-productive fixed assets.

2. By sectors of the national economy:

1) industry,

2) agriculture, etc.

3. By accessories:

1) own,

2) rented.

4. Depending on the specific role in the product creation process:

1) the active part of fixed assets (equipment),

2) the passive part of fixed assets.

5. According to the degree of use in production and economic activities:

1) in operation,

2) on lease,

3) in stock,

4) on conservation.

6. By form of ownership:

1) state,

2) municipal,

3) private,

4) mixed,

5) foreign and mixed with Russian participation,

6) public organizations.

7. By natural composition:

1) buildings,

2) buildings,

3) transmission device,

4) machinery and equipment,

5) vehicles,

6) tools,

7) production equipment and accessories, household equipment,

8) working and productive livestock,

9) perennial plantations,

10) capital expenditures for land improvement,

11) other fixed assets.

8. By structure:

1) production,

2) technological.

Types of valuation of fixed assets

1. Total initial cost - the actual costs of creation, acquisition, delivery, storage and installation.

2. Cost less depreciation (residual cost).

3. Full replacement cost - the cost of reproduction of the same object of fixed assets in modern conditions acquisition and commissioning.

4. Replacement cost minus depreciation.

5. Residual value of funds retired as a result of depreciation.

6. Liquidation value.

Together, all types of valuation of fixed assets constitute the mixed value of the enterprise.

Physical and obsolescence of fixed assets

Physical deterioration - permanent loss of their use value by the main production assets as a result of their operation or non-use. Physical depreciation is realized in monetary terms in depreciation deductions. These deductions through the production development fund are used to restore fixed assets. It is carried out in the form of capital investments. However, depreciation charges alone are not enough to restore fixed assets.

Obsolescence - decrease in the value of fixed assets, caused by changes in the conditions of their reproduction and independent of the degree of loss of their productive properties.

1. Depreciation associated with a reduction in the cost of the same type of fixed assets produced in the engineering industries.

2. Associated with the creation of funds of this type, with greater productivity.

fixed assets

Additional sources:

1) profit and other own financial resources of the enterprise,

2) share and share capital,

3) long-term loan,

4) budget allocations,

5) funds from off-budget funds.

Movement of production assets

The movement of production assets occurs continuously and in time, because. production assets are in the sphere of production and in the sphere of circulation, then the time of one turnover of production assets is the sum of the time of production and the time of circulation:

B o \u003d B pr + B about

In pr \u003d V s + V prts

In prts \u003d V pr pr + V lane.

In pr pr \u003d V rp + V est.pr.

W- time spent in production stocks,

In pr- production cycle time,

In pr pr- time of the production process,

In lane- interruption time in the production process,

In rp- time of the working period,

In est.pr- time of exposure to natural processes.

Turnaround time:

V about \u003d V s + V tr + V pr cf

In with- time spent in warehouses,

In tr- transport time,

In pr wed- the time of acquisition of new means of production.

Generally life cycle fixed assets consists of next steps:

1. Admission.

2. Participation in the production process.

3. Movement within the enterprise.

4. Repair (current, capital).

5. Leasing.

6. Inventory.

7. Retirement.

Indicators of the use of fixed assets

1. Return on assets.

2. Capital intensity.

3. Capital-labor ratio.