Financial relations of legal entities are based on principles that are related to the basics of their economic activities.
What are the principles of organization of the company's finances?
There are the following principles of organization of enterprise finance:
Self - regulation.It means granting enterprises freedom in carrying out activities for scientific, technical and industrial development based on financial, material and labor resources. The legal entity plans its own activities, incomes and expenses, independently, depending on the demand for products.
- Self-repayment.Costs should pay off with profit and other own financial resources. The enterprise is financed at its own expense, and also makes the necessary taxes to the state budget.
- Self-financing. It means not just recoupment, but the formation of its own internal and external financial resources.
- Dividing the sources of the formation of financial resources forborrowed and own. With the seasonal nature of production, the share of borrowed sources is increasing, and in non-seasonal sectors the basis is my own sources. There must be a balance between borrowed and own sources.
- Availability of financial reserves.It is used to ensure stable activity of the organization in case of fluctuating market conditions and in matters of increasing property liability for failure to fulfill obligations to partners.
There are other principles of organization of the company's finances.
- Planned. Used to ensure compliance of sales and costs, sales needs, investment.
- Financial ratio of terms. It is necessary to minimize the time between obtaining funds and using them.
- Flexibility. In the event that the planned sales volume is not reached, maneuver capabilities should be provided.
- Minimizing financial costs. That is, the financing of investment and other costs must be implemented in the cheapest way.
- Rationality. The greatest efficiency of the invested capital should be achieved, with minimal risk.
- Financial sustainability. Financial independence and solvency of the enterprise should be ensured.
These principles of organization of the company's finances are not exhaustive.
Principles of organization of finance of commercial enterprises.
- Economic independence. Jur.individuals independently, regardless of the form of ownership, distribute their funds for profit. Organizations can acquire securities, form the charter capital of another legal entity, store their material resources on accounts in commercial banks.
- Self-financing. The cost of production, its development and implementation should be paid in full.
- Material interest. The enterprise is interested in making a profit from its activities.
- Liability. The enterprise is responsible for the results of its financial and economic activities.
- Provision of financial reserves.
Finance and the financial system of the Russian Federation.
The financial system of the Russian Federation consists of the state budget, state credit, extra-budgetary funds, stock market, insurance funds and finance organizations of various forms of ownership.
These financial relations are divided intostate finances, which ensure the needs of expanded reproduction at the macrolevel; finance of economic entities, which are used to ensure the reproduction of the process at the micro level in cash.
