Organization financial resources

Currently, the Russian economy is faced with large-scale tasks. In this regard, several issues become relevant at once. All of them to one degree or another relate to financial resources.

Urgency of the problem

Material and financial resources today are of paramount importance for the development of the economy. The intensity of market relations requires a stable infusion of funds in all spheres of economic activity. Of particular importance are the financial resources of the state. Their condition, in turn, depends on the profitability of companies operating in the country. The existing problems are due to various reasons. They are associated with changes that occur in the credit and banking structure, the periodic deepening of inflation and crisis processes. All this negatively affects the financial resources of the state as a whole, and the state of capital of companies in particular.

Fundraising

Managing financial resources requires a competent approach. Today it is one of the most important tasks for all business entities. In addition to using its own financial resources, it becomes necessary to attract third-party borrowed funds. However, this process can give results only if a rational ratio between these flows is observed. In this regard, it is necessary to create a scientifically based policy for the distribution of capital, which would take into account the specifics of the activities of entities in the framework of the modern market.

Enterprise financial resources

The capital of an economic entity is the foundation of its creation and subsequent development. In the process, these funds ensure the interests of the owner and his staff. Along with this, capital also participates in state financial turnover. Each business entity must have certain means aimed at satisfying its needs. The financial resources of the enterprise are a complex that includes two elements. First of all, these are the funds that the company itself has. In addition, firms also attract borrowed financial resources. This complex is aimed at fulfilling obligations, current expenses, expenses related to capital expansion. It acts as a result of the interaction of revenue, distribution and expenditure of funds, accumulation and subsequent implementation in the course of business. To create capital, different sources of financial resources are used. Funds come from investors, founders, owners, investment funds, commercial banks and so on. Subsequent formation of financial resources is carried out in companies through depreciation and profit. This, however, does not exclude the attraction of additional emissions, bonds, stocks and other securities, the receipt of loans and other loans.

Assignment of funds

The financial resources of the organization are of paramount importance in the process of reproduction and its regulation, stimulating economic activity and enhancing its effectiveness. In general, current assets contribute to ensuring control over the general condition of the business entity. One of the main tasks of managers is the competent use of financial resources. Specialists should determine the most promising areas of their distribution and ensure income generation on their basis.Thus, the financial resources of the organization perform the control, stimulating, distribution, regulatory and reproductive functions.

Basic requirements for funds

To ensure the effectiveness of financial resources, any company must:

1. To mobilize funds. This ensures their maneuverability, allows you to concentrate them on the most important areas of economic activity.
2. To develop plans in accordance with which the formation of sources of financial resources will be carried out, the receipt of funds directly, distribution for the coming and long-term periods.
3. Observe certain proportions between spending money and getting it.

Classification

Sources of financial resources of an enterprise include all receipts and cash income held by a company or other business entity for a certain period. They are aimed at making deductions and expenses that are necessary for social and industrial development. In addition to the above, the following sources of financial resources of the enterprise are involved in circulation:

• Budgets of different levels.
• Special centralized funds.

Available and incoming funds are allocated for advanced costs advancement, investment, deductions and expenses for social and other needs and so on. Sources of financial resources are divided into several categories:

1. Extrabudgetary centralized funds.
2. Attracted on an irrevocable or refundable basis.
3. Budget revenues.
4. Borrowed funds.
5. Equity.

The accumulation of funds is carried out mainly due to profit from the main and other (additional) types of activity, income from the sale of retired material assets, increase in stable liabilities, depreciation, loans and credits, shares and other contributions of employees, various targeted receipts. Sources of financial resources include concerns and associations, which, in turn, include the company, higher structures while maintaining industry-specific state regulatory bodies. In the latter case, funds are received in the form of insurance payments, subsidies. The formation of the financial resources of the enterprise is thus carried out by redistribution. In this group, insurance payments are becoming increasingly important, and budget revenues directed strictly to targeted needs are becoming less and less.

Inclusion of funds in circulation

Financial resources can be used for various purposes. The main ones include:

1. Ensuring current production and sales processes for stable output and trading activities. This is achieved through the planned allocation of funds for primary and secondary operations, marketing, supply and marketing.
2. Financing management activities that help maintain the functionality of the administrative and organizational system at a high level. This task is realized through restructuring, introducing new services or reducing the existing apparatus.
3. Investing in the main production. In this direction, various methods of financial resources are used. In particular, the most promising are short and long-term investments in the complete updating and modernization of production processes, the creation of new directions or the reduction of unprofitable ones.
4. Investments in production, bringing companies more revenue than their own activities. This, in particular, involves the acquisition of securities and other assets in different market sectors, investing in the capital of other companies for profit and rights to participate in their management systems or in projects with a high degree of risk and profitability, and providing loans to other corporations.
5. Creating reserves.Such sources of financial resources are generated both by the company itself and by insurance companies and budget funds based on normative contributions, which, in turn, contribute to maintaining a continuous circulation of funds, protecting the corporation from adverse changes in market conditions.

Company capital

Financial resources that belong directly to the corporation itself, as a rule, are determined by the minimum need for funds to create the necessary base of inventory, ensure the planned production and sales volumes, as well as to carry out calculations and make transfers on time. The capital of the company is formed due to the value of the property invested (invested) by the owner. It represents the difference between liabilities (liabilities) and total assets - the excess of the market price of tangible assets over outstanding debt.

Capital benefits

Financial resources owned by the company, in contrast to borrowed funds, have the following advantages:

1. Ease of attraction. Decisions that are associated with an increase in capital, especially from internal sources, are made by managers and owners of the enterprise without coordination with other business entities.
2. High ability to generate profits in all areas of activity. This is due to the fact that the use of these financial resources does not require payment of loan interest.
3. Ensuring monetary stability in the process of company development, the solvency of the corporation in the long run. This, in turn, helps to reduce the risk of bankruptcy.

Lack of capital

In addition to advantages, financial resources owned directly by the corporation have the following disadvantages:

1. The limited volume of attraction. This, in turn, significantly reduces the opportunities for expanding the investment and operating activities of the company in favorable periods of the market and at certain stages of its life cycle.
2. High cost in comparison with alternative borrowed funds.
3. An unused opportunity to increase the profitability ratio of capital due to the proceeds of loans and credits, since without them it is impossible to ensure the excess of financial profitability over economic profitability.

Capital structure

The financial resources owned by the corporation provide stability, but at the same time they cannot ensure the creation of the necessary additional volumes during a favorable market environment. The company's funds include retained earnings, reserve, additional, authorized capital and other assets. All these elements are undoubtedly important in the activities of the corporation, but not enough to maximize returns.

Registered capital

It represents the starting funds that are necessary for the company to carry out its core business in order to generate income. Authorized deposits can be made in money and property, which the company members transfer in repayment of obligations. The main difference between these assets is that they should be distributed among the founders. In this regard, the decision on changes adopted at the general meeting should be accompanied by the establishment of the procedure for their attribution to each participant. Share capital represents the core business of the company. It ensures the establishment of the share of each founder in the management of the corporation, and also guarantees the observance of the interests of creditors.

Additional means

This capital consists of share premium, which is created in the company. Additional funds represent the excess of the sale price of shares in relation to the nominal in the process of open subscription.The share premium that arises in the course of creating the authorized capital in joint-stock companies cannot be allocated to the consumer needs of the company. Additional paid-in capital is also formed from:

1. Revaluation amounts of non-current assets.
2. Exchange rate differences associated with the formation of share capital.
3. Amounts of retained earnings directed as sources of coverage of capital investments.
4. Gratuitously received property, in addition to that which relates to the social sphere and is included in retained earnings.
5. Facilities budget allocation to finance long-term deposits.

The replenishment of additional capital can be carried out at the expense of funds that are sent to replenish the working capital of the company. This source is formed in the course of distribution by the founders of retained earnings. Budget resources credited to a special account, from which they are subsequently debited to pay off expenses incurred in accordance with the investment program of the corporation. After that, the spent amount is included in additional paid-in capital. The basis for such accession is the use of budget allocations for the intended purpose. Usually, part of the capital that arose upon receipt of a certain type of property or an increase in its price is used to cover expenses in connection with the disposal of similar material assets or a decrease in their value.

Reserve

This element represents the insurance capital of the company, which is designed to reimburse the total book costs in the absence of other ways to cover them. Reserve funds are also used to pay income to creditors and investors if there is not enough profit to pay off these obligations. These resources guarantee the smooth operation of the enterprise and the interests of third parties. The latter, in turn, gain confidence in the solvency of the company. Accounting for the creation of reserve funds provides the information necessary to exercise control over compliance with its lower and upper boundaries. Regardless of the situation, the maximum value of this capital should not exceed the amount determined by the owners and which is recorded in the constituent documentation. The law, along with this, establishes a minimum limit for joint ventures and joint-stock companies.

Special Funds

This form of equity is considered quite peculiar and very promising. Special funds are created for subsequent targeted use. Companies may form such reserves for:

1. Paying for upcoming employee vacations.
2. The accrual of the annual long service award.
3. Upcoming expenses for the repair of property intended for rental in accordance with the rental agreement.
4. Payment of remuneration according to the results of the year.
5. Implementation of OS repair.
6. Production costs for training with the seasonal nature of the activity.
7. Upcoming environmental costs (land reclamation and so on).
8. Warranty service and repair.
9. Coverage of other anticipated expenses and other purposes that are provided for in the legislation of the Russian Federation and regulatory acts of the Ministry of Finance.

Consumer and savings funds

They relate to special reserves. The accumulation fund is considered funds that are used for the production development of the company or other similar needs that are provided for in the constituent documentation. For example, it may be the creation of a new property. Consumer funds consist of funds reserved for social development activities (except for capital investments), material incentives for staff and other work of a similar nature that do not lead to the formation of new material values.

retained earnings

It characterizes the part of the company's income received in the previous period and not used for consumption by shareholders / shareholders / owners and employees. Retained earnings are calculated as the difference between all financial results identified in transactions (based on accounting) and the valuation of balance sheet items for the reporting period and the mandatory amount of fees and taxes, including sanctions for violations. This part of the income is intended for reinvestment (capitalization) of industrial development. In terms of economic content, retained earnings act as one of the types of reserve of own funds of the corporation.

Third-party financial resources

These include primarily borrowed funds. They characterize the total amount of monetary obligations of the company. Borrowed funds can be long- and short-term. The latter include all resources raised for a period of up to a year. The main forms of these loans include short-term bank loans, various payables (for services, products, work, issued promissory notes, pay and so on). As a rule, liabilities arise with suppliers or holders of bills. Long-term funds are raised for a period of more than a year. Their main forms include long-term loans, debts on issued bonds, financial assistance that was provided on a repayable basis, and so on.

Involved funds

This is another type of additional income used in circulation, in addition to equity and borrowed capital. Attracted funds consist of accounts payable and target money until they are put into circulation for their intended purpose. A set of financial obligations arises in the course of the company's current activities. In the work of the corporation, debt may appear to counterparties, which include contractors and suppliers, the budget, employees, dependent and subsidiary structures, off-budget social services. funds and so on. Management of these funds involves an individual approach to creditors. In accordance with this, a calculation scheme with them is built.