Fundamentals of the functioning of finances of commercial organizations. Principles of organizing enterprise finances. Business Finance

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The essence and features of organizing finances of commercial enterprises. Finance of commercial organizations and enterprises. Profit and profitability of commercial enterprises.

Business Finance

The abstract was completed by Anna Tyurikova

Introduction

In a market economy, the main tools for regulating economic processes are cost categories, among which finance occupies an important place. The latter are actively used as a tool for regulating the economy, both at the state level and at the level of entities operating in different spheres and sectors of the economy. At the same time, the state of finances affects their activities. It is the stability of finances, their availability and stability that characterize the well-being of the state and business entities of citizens.

Finance expresses part of the monetary relations that arise regarding the distribution of the value of the gross national product through the formation and use of financial resources to meet social needs.

Since financial relations are always associated with the formation of monetary income and savings, which take special forms of financial resources, the latter act as a material embodiment of finance as an economic category.

Finance of commercial organizations and enterprises is the main link of the financial system, covering the processes of creation, distribution and use of gross domestic product in value terms. They operate in the sphere of material production, where the total social product and national income are mainly created.

The financial conditions of business have undergone significant changes, which are reflected in the liberalization of the economy, changes in forms of ownership, large-scale privatization, changes in the conditions of state regulation, and the introduction of a taxation system for commercial organizations and enterprises.

All this led to an increase in the role of distribution relations. The ultimate goal of entrepreneurial activity was to make a profit while maintaining equity capital.

In the course of business activities of commercial organizations and enterprises, certain financial relations arise related to the organization of production and sales of products, the provision of services and the performance of work, the formation of their own financial resources and the attraction of external sources of financing, their distribution and use.

In the economic sphere, it is thanks to finance, which is a tool for the cost distribution of the gross domestic product, that the satisfaction of constantly changing reproductive needs is ensured. Without finance, it is impossible to ensure the circulation of production assets on an expanded basis, regulate sectoral and territorial proportions in the economy, and stimulate the development of production.

The material basis of financial relations is money. Financial relations are part of monetary relations, arise only with the real movement of funds, are accompanied by the formation and use of equity capital, centralized and decentralized funds of funds.

1. The essence and features of the organization of finances of commercial enterprises.

The reason for the emergence of finance is the need of the state and various entities for resources that support their activities. This need for resources cannot be satisfied without finance either in the economic sphere, or in the social sphere, or in the sphere of government activities: management and defense. This is due to the fact that only with the help of finance is the distribution of value among the subjects of the reproduction process possible, that is, only through the financial distribution of the value of the gross national product does each participant in social reproduction receive its share in the created value and the movement of funds receives a target designation.

The public purpose of the finances of organizations is to provide financial resources to separately functioning subjects of social activity in the form of the formation of legal entities. According to the principles of operation, these organizations carry out their activities on the terms of commercial calculation, that is, they pursue the goal of making a profit, or do not set such a goal, but their functioning is socially necessary and useful.

In addition, there are various public associations that can be organized into a legal entity. The finances of legal entities - organizations are divided into the following units: finances of commercial organizations, finances of non-profit organizations, finances of public organizations.

A legal entity that pursues the generation of income as the main goal of its activities is a commercial organization. Such a legal entity is created in the form of a state enterprise, business partnership, joint-stock company, production cooperative. A commercial organization is obliged to carry out entrepreneurial activities.

Entrepreneurship is an initiative activity of legal entities and citizens, regardless of the form of ownership, aimed at obtaining net income by satisfying the demand for goods (work, services), based on private property (private entrepreneurship) or on the right of economic management of a state enterprise.

Enterprises operating on a commercial basis include all types of enterprises in the sphere of material production, the sphere of commodity circulation, as well as some organizations in the non-production sphere, small enterprises, private enterprises, joint-stock companies, partnerships, associations, commercial banks, insurance companies, etc.

Commercial accounting and trade secrets have a significant impact on the organization of finances of enterprises operating on a commercial basis.

Commercial calculation is a method of business management, which consists in measuring in monetary form the costs and results of activities; its goal is to extract maximum profits at minimum costs. Commercial calculation presupposes the obligatory receipt of profit and the achievement of a sufficient level of profitability in order to carry out entrepreneurial activities. Otherwise, the enterprise goes bankrupt and is subject to liquidation and is declared bankrupt.

Bankruptcy is the persistent inability of a debtor, an individual entrepreneur or legal entity, to satisfy the demands of its creditors and pay taxes and other obligatory payments due to the excess of its liabilities over its assets.

Assets are the property of a business entity, which includes all fixed and current assets. Liabilities are the obligations of a business entity, consisting of borrowed and attracted funds, including accounts payable.

Trade secret is any confidential managerial, production, scientific, technical, trade, financial and other information that is valuable for an enterprise in achieving an advantage over competitors and making a profit.

Carrying out activities under the conditions of a trade secret and through the method of commercial calculation determine the specifics in the organization of finance, which consists of the following points.

Commercial organizations have real financial independence - financial independence is expressed in the fact that a business entity has the right to independently distribute the proceeds received from the sale of products, dispose of the profit remaining after taxation, at its own discretion, form and use funds for production and consumer purposes, independently seek sources of expansion production, including the issue of securities, attraction of credit resources, etc.. An enterprise has the right to open settlement and other accounts in any commercial bank for storing funds and carrying out all types of settlement, credit and cash transactions.

The organization of finances of entities whose activities are covered by trade secrets are free from petty regulation by the state, i.e. have complete economic freedom. The state regulates the financial and economic activities of enterprises, as a rule, with the help of cost instruments, pursuing appropriate tax, depreciation, currency, export-import policies.

Commercial organizations bear full financial responsibility for the actual results of work, timely fulfillment of obligations to suppliers, consumers, the state, banks and other counterparties. In a market economy, an enterprise is liable for its obligations with its own property; For failure to fulfill obligations, enterprises are subject to a reasonable system of financial sanctions: fines, penalties, and penalties. Since enterprises have real financial independence, they cover their own losses and damages. At the same time, losses from innovation activities are covered by financial reserves and the insurance system, and losses from mismanagement are covered by profits. The enterprise is obliged to compensate for damage caused by irrational use of land and other natural resources, environmental pollution, violation of safety and production rules, sanitary standards, etc.

The full implementation of the financial responsibility of commercial organizations is ensured in legislation. In particular, Article 44 of the Civil Code states that “legal entities are liable for their obligations with all the property they own.”

The organization of finance of commercial enterprises is aimed at ensuring material interest in improving work results. This is achieved through a system of profit distribution (collective interest) and through a system of material incentives and bonuses (personal interest).

Commercial organizations enter into financial relationships with banks, insurance companies, and the state. Moreover, such relationships are organized taking into account the principles of commercial calculation. Enterprises and banks are equal partners who organize the financial side of their operations with a profit focus: banks provide paid and urgent loans, receive commissions for intermediary and trust transactions from their clients.

In turn, if a company stores free money in deposit accounts, then the bank charges interest on it.

Insurance companies insure various objects of commercial enterprises and their diverse risks. This creates certain guarantees of stability in the business activities of commercial organizations.

The state should also act as a partner of enterprises, since the latter is the main taxpayer providing funds to the state budget. In this regard, it is advisable for the state to establish tax payments at a level so as not to undermine the interest of business entities in the development of production.

Thus, the financial relationships of commercial organizations with counterparties are aimed at strengthening commercial settlement and increasing the efficiency of business activities.

Finance of commercial enterprises and organizations is financial or monetary relations that arise in the course of entrepreneurial activity in the process of forming equity capital, target funds of funds, their distribution and use.

2. Finance of commercial organizations and enterprises.

2.1. Functions of finance of commercial organizations and enterprises.

Through the distribution function, the initial capital is formed, formed from the contributions of the founders, the reproduction of capital, the creation of basic proportions in the distribution of income and financial resources, ensuring the optimal combination of interests of individual producers, business entities and the state as a whole.

The distribution function of finance is associated with the formation of monetary funds of commercial funds and organizations through the distribution and redistribution of incoming income.

The objective basis of the control function is the cost accounting of costs for production and sales of products, performance of work and provision of services, the process of generating income and cash funds.

Financial control over the activities of an economic entity is carried out: directly by the economic entity through a comprehensive analysis of financial indicators, operational control over the progress of financial plans, timely receipt of revenue from the sale of products (works, services), obligations to suppliers, customers and consumers, the state, banks and others counterparties; shareholders and controlling shareholders by monitoring the effective investment of funds, the generation of profits and the payment of dividends; tax authorities, which monitor the timeliness and completeness of payment of taxes and other obligatory payments to the budget; commercial banks when issuing and repaying loans, providing other banking services; independent audit firms, when conducting audits.

2.2. Principles of organizing finances of commercial organizations and enterprises.

Financial relations of commercial organizations and enterprises are built on certain principles related to the fundamentals of economic activity: economic independence, self-financing, material interest, provision of financial reserves.

The principle of economic independence cannot be realized without independence in the field of finance. Economic entities, regardless of their form of ownership, independently determine the scope of economic activity, sources of financing, and directions for investing funds in order to make a profit. However, it is impossible to talk about complete economic independence, since the state regulates certain aspects of their activities. Legislation establishes relationships between commercial organizations and enterprises with budgets at different levels.

Implementation of the principles of self-financing is one of the main conditions for entrepreneurial activity, which ensures the competitiveness of an economic entity. Self-financing means complete self-sufficiency of costs for the production and sale of products, performance of work and provision of services, investment in the development of production at the expense of one’s own funds and, if necessary, bank and commercial loans.

The principle of material interest - the objective necessity of this principle is ensured by the main goal of entrepreneurial activity - making a profit.

At the level of individual employees of an enterprise, the implementation of this principle can be ensured by a high level of remuneration. For an enterprise, this principle can be implemented as a result of the state implementing an optimal tax policy and creating economic conditions for the development of production. The interests of the state can be respected by the profitable activities of enterprises, production growth and compliance with tax discipline.

The principle of financial responsibility means the presence of a certain system of responsibility for the conduct and results of financial and economic activities. Enterprises that violate contractual obligations, payment discipline, repayment terms for received loans, tax laws, etc., pay penalties, fines, and penalties. This principle has now been implemented most fully.

The principle of providing financial reserves is dictated by the conditions of entrepreneurial activity, which is associated with certain risks of non-return of funds invested in the business. In conditions of market relations, the consequences of risk fall on the entrepreneur, who voluntarily and independently, at his own peril and risk, implements the program he has developed.

The implementation of this principle is the formation of financial reserves and other similar funds that can strengthen the financial position of the enterprise at critical moments of management. 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 from it.

All principles of organizing the finances of enterprises are in constant development and for their implementation in each specific economic situation, their own forms and methods are used, corresponding to the state of productive forces and production relations in society.

2.3. Factors influencing the organization of enterprise finances.

The organization of the finances of an enterprise is influenced by two factors: the organizational and legal form of business and industry technical and economic features.

The organizational and legal form of business is determined by the Civil Code of the Republic of Kazakhstan, according to which a legal entity is an organization that has separate property in its ownership, economic management or operational management and is liable for its obligations with this property. It has the right, on its own behalf, to acquire and exercise property and personal non-property rights, bear responsibilities, and be a plaintiff and defendant in court. A legal entity must have an independent balance sheet or estimate. Legal entities can be organizations:

those pursuing profit as the main goal of their activities - commercial organizations;

non-profit organizations that do not have profit as such a goal and do not distribute profits between participants.

Commercial organizations are created in the form of business partnerships and societies, production cooperatives, and state enterprises.

Financial relations arise already at the stage of formation of the authorized capital of an economic entity, which from an economic point of view represents the property of the economic entity on the date of its creation. A legal entity is subject to state registration and is considered created from the moment of its registration.

The organizational and legal form of business determines the content of financial relations in the process of forming the authorized capital. The formation of property of commercial organizations is based on the principles of corporatism. The property of state enterprises is formed on the basis of public funds.

Participants in a general partnership create the authorized capital at the expense of contributions from the participants, and essentially the authorized capital of a general partnership is a joint capital. By the time of registration of a general partnership, its participants must make at least half of their contribution to the share capital. The rest must be paid by the participants within the time period specified in the memorandum of association. If this rule is not followed, the participant is obliged to pay the partnership 10% per annum on the amount of the unpaid part of the contribution and compensate for losses incurred. A participant in a general partnership has the right, with the consent of the remaining participants, to transfer his share in the joint capital or part thereof to another participant in the partnership or a third party.

The founding agreement of a limited partnership stipulates the terms of the size and composition of the share capital, as well as the size and procedure for changing the shares of each of the general partners in the share capital, the composition, timing of contributions and liability for violation of obligations. The procedure for forming the authorized capital is similar to the procedure for its formation in a general partnership. The management of the limited partnership is carried out only by the general partners. Participants-investors do not take part in business activities and are essentially investors.

The authorized capital of a limited liability company is also formed from the contributions of its participants. The minimum amount of authorized capital in accordance with the law is set at 100 minimum calculation indices on the day of registration of the company and must be paid in at least half. The remaining part must be paid during the first year of the company's activity. If this procedure is violated, the company must either reduce its authorized capital and register this reduction in the prescribed manner, or cease its activities through liquidation. A company participant has the right to sell his share in the authorized capital to one or more company participants or to a third party, if this is stipulated in the charter. The authorized capital of a company with additional liability is formed in the same way.

Joint-stock companies form authorized (share) capital based on the nominal value of the company's shares. The minimum size of the authorized capital of an open joint-stock company is set at 500,000 minimum calculated indicators on the day of registration of the company. The authorized capital is formed by placing common and preferred shares.

In such areas of business activity as the production and marketing of industrial and agricultural products, trade, consumer services, etc., the preferred form of business activity is a production cooperative. The property of the PC consists of the share contributions of its members in accordance with the charter of the cooperative. The PC can create indivisible funds at the expense of a certain part of the property, if this is stipulated in the charter. By the time of registration of the PC, each member is obliged to make at least 10% of his share contribution, and the remaining part within a year from the date of registration.

The profit of commercial organizations remaining after its distribution in the general established order is distributed among the participants on the principles of corporatism.

According to its economic content, the entire set of financial relations can be grouped into the following areas:

between the founders at the time of creation of the enterprise - associated with the formation of the authorized capital;

between enterprises and organizations - associated with the production and sale of products, the emergence of newly created value;

between enterprises and its divisions - regarding the financing of expenses, distribution and use of profits, working capital;

between enterprises and their employees - during the distribution and use of income, issuance of shares and bonds, payment of interest, collection of fines, withholding taxes;

between an enterprise and a higher organization, within financial and industrial groups;

between commercial organizations and enterprises - related to the issue and placement of securities, mutual lending, equity participation in the creation of joint ventures;

between enterprises and the financial system of the state - when paying taxes and making other payments to the budget;

between an enterprise and the banking system - in the process of storing money in commercial banks, paying interest on a bank loan, and providing other banking services;

between enterprises and insurance companies and organizations - when insuring property, commercial and entrepreneurial risks;

between enterprises and investment institutions - during the placement of investments, privatization, etc.

Each of the listed groups of relations has its own characteristics and scope of application, all of them are bilateral in nature and their material basis is the movement of funds.

2.4. Financial resources of commercial organizations.

To carry out their activities, commercial organizations have, along with material and human resources, also funds that cover various needs. Cash comes at their disposal through various channels and, in the process of involving it in circulation, is transformed into financial resources.

Financial resources of commercial organizations are cash income and receipts at their disposal and intended to meet the needs associated with their functioning: fulfilling financial obligations to counterparties, incurring expenses for statutory (core) activities, including costs for expanded production, economic incentives for employees , social issues.

The formation of financial resources of commercial organizations can be carried out through three channels:

At the expense of own and equivalent funds;

mobilization of resources in the financial market;

receipt of funds from the financial system in the order of redistribution.

The initial formation of financial resources occurs at the time of establishment of the enterprise, when the authorized capital (fund) is formed. The sources of formation of the authorized capital depend on the organizational and legal form of business: joint stock company, cooperative, state enterprise, partnership, etc.

In this regard, the following sources of authorized capital of commercial organizations are distinguished: share capital, share contributions of members of cooperatives, industry financial resources, long-term credit, budget funds.

The size of the authorized capital shows the amount of those funds - fixed and working capital - that are invested in the process of production or carrying out other statutory activities of a commercial organization. At the same time, the minimum size of the authorized capital, the features of its formation and use, the legal regime of property, restrictions on the entrepreneurial activity of certain types of commercial organizations established in the form of business partnerships, banks, insurance companies, joint ventures are regulated by the Civil Code and other special legislative acts. Contributions to the authorized capital of a business partnership can be money, securities, things, property rights, including intellectual property.

The main source of financial resources in existing commercial enterprises is the cost of products sold and services provided. In the process of revenue distribution, various parts of the cost of goods sold take the form of cash savings.

Financial resources are formed mainly from profits. In addition, the sources of financial resources are: proceeds from the sale of retired property, stable liabilities, various targeted revenues, mobilization of internal resources in construction, funds from leasing property, etc.

A commercial enterprise formed in the form of a cooperative has shares and other contributions from members of the workforce as a source of financial resources.

Significant financial resources can be mobilized in the financial market. The forms of their mobilization are the sale of shares, bonds and other types of securities, as well as credit investments.

Carrying out activities in market conditions is associated with various types of risks: business risks, currency risks, commercial risks, etc. In this regard, commercial organizations are increasingly resorting to insurance of their activities. This determines the payment of insurance compensation to them.

Thus, in the composition of financial resources, a large role is played by funds mobilized in the financial market and insurance compensation payments received from insurance companies.

The use of financial resources is carried out by commercial organizations in many areas:

Payments to financial and banking authorities;

Investment of own funds in core activities: capital costs (reinvestment) associated with the expansion of production and its technical renewal, transition to new advanced technologies, use of know-how, etc.;

Investing financial resources in securities purchased on the market;

Direction of financial resources to the formation of monetary funds of an incentive and social nature;

Use of financial resources for charitable purposes, sponsorship, etc.

3. Profit and profitability of commercial enterprises.

The functioning of enterprises on the terms of commercial settlement presupposes the obligatory receipt of profit. Profit is the most important category of market relations; it has three functions:

An economic indicator characterizing the financial results of the enterprise’s economic activities;

Stimulating function that appears in the process of its distribution and use;

One of the main sources of formation of financial resources of the enterprise.

The basis for the existence of profit in the economy is the presence of a surplus product and the commodity-money form of the process of expanded reproduction, i.e. profit is the basic form in which the value of the surplus product is expressed and measured.

Profit is the main source of financing for the increase in working capital, renewal and expansion of production, social development of the enterprise, as well as the most important source for the formation of budgets at various levels.

Profit is a source of financing needs of different economic content. When distributing it, the interests of both society as a whole, represented by the state, and the entrepreneurial interests of business entities and their counterparties, and the interests of individual workers intersect. The object of distribution is gross profit.

The distribution of profit is the prerogative of an economic entity, is regulated by the internal documents of the enterprise and is recorded in its accounting policies. When distributing profits, they proceed from the following principles: priority fulfillment of obligations to the budget; profits remaining at the disposal of the enterprise are allocated for accumulation and distribution.

The mechanism of influence of finance on the efficiency of economic management depends on the nature of distribution relations, specific forms and methods of their organization, their compliance with the level of productive forces and production relations. The guideline for establishing the relationship between accumulation and consumption should be the state of production assets and the competitiveness of manufactured products. In the process of distributing net profit, an enterprise has the right to independently determine the method of distribution of profit.

The distribution of net profit can be carried out through the formation of special funds: an accumulation fund, a consumption fund, reserve funds, or by its direct distribution in certain areas.

In the first case, the enterprise must draw up estimates for spending consumption and accumulation funds as an addition to the financial plan. In the second case, the distribution of profits is reflected directly in the financial plan.

The process of economic recovery and the further development of entrepreneurial activity in the production sector will largely determine the maximum profit generation due to intensive factors, increased investment in the real sector of the economy and the creation of an effective tax system.

Profitability, in contrast to the profit of an enterprise, which shows the effect of entrepreneurial activity, characterizes the effectiveness of this activity. Profitability is a relative indicator that reflects the degree of profitability of an enterprise. In a market economy, there is a system of profitability indicators.

The profitability of all products sold can be defined as:

The percentage ratio of profit from product sales to the costs of its production and sale;

Percentage ratio of profit from sales of products to revenue from sales of products;

Percentage ratio of balance sheet profit to revenue from sales;

The ratio of net profit to revenue from sales.

These indicators give an idea of ​​the efficiency of the enterprise's current costs and the degree of profitability of the products sold.

The profitability of certain types of products depends on the price and total cost. It is defined as the percentage of the selling price of a given product minus its full cost to the total cost of a unit of this product.

Return on non-current assets is defined as the percentage of net profit to the average value of non-current assets. Return on current assets is defined as the percentage of net profit to the average annual value of current assets.

Return on investment is defined as the percentage of gross profit to the value of the enterprise's assets. Return on equity is calculated as a percentage of net profit to equity.

Profitability indicators are used in the process of analyzing the financial and economic activities of an enterprise, making management decisions, and decisions of potential investors to participate in the financing of investment projects.

Conclusion.

Market principles of economic management and business activities have made significant adjustments to the interpretation of the need for finance, which was previously determined by three factors: the existence of the state, the presence of commodity-money relations and the operation of economic laws.

Finance ensures the circulation of fixed and working capital, expands the production process, invests in the economy and the social sector, regulates the sectoral and territorial structure of the economy, stimulates the development of production, etc.

Finance of commercial organizations is an important area of ​​financial relations. Modern conditions of reproduction and increased competition have updated the issues of financial management of commercial organizations. Therefore, it becomes important to consider such issues as the essence, functions and principles, factors influencing the organization of finances of commercial organizations, profit and profitability.

The financial work of an enterprise in modern conditions acquires a qualitatively new content, which is associated with the development of market relations. In a market economy, the most important tasks of financial services are not only the fulfillment of obligations to the budget, banks, suppliers, and their employees, but also the organization of financial management, i.e. development of a rational financial strategy and tactics of the enterprise based on the analysis of financial statements, optimal management of cash flows arising in the process of financial and economic activities of the enterprise in order to achieve the set goal and maximize profits.

Commercial enterprises represent economic relations that arise in the process of forming production assets for production and sales of products, forming their own resources, attracting external sources of financing, their distribution and use.

Such economic relations are often called monetary or financial; they arise only with the movement of funds and are accompanied by the formation and use of centralized and decentralized funds of funds.

Functions

The finances of commercial organizations and enterprises have the same functions as national finances - distribution and control.

Through the distribution function, the formation of initial capital occurs due to the contributions of the founders, the creation of proportions in the distribution of income, etc.

The objective basis of the control function is cost accounting of costs for production and sales of products (performance of work and provision of services) and the formation of income and cash funds.

Finance as distribution relations provides sources of financing for the reproduction process and thereby links together all phases of the reproduction process: production, exchange, consumption.

Distribution relations affect the interests of both society as a whole and individual economic entities, their employees, shareholders, credit and insurance institutions.

Control

The principle of providing financial reserves. Legislatively, this principle is implemented in open and closed joint-stock companies. The amount of the reserve fund is regulated and cannot be less than 15% of the paid-up authorized capital, but not more than 50% of taxable profit.

Financial reserves can also be formed by economic entities of other organizations with legal forms of ownership.

It is advisable to store funds allocated to financial reserves in deposit accounts at a bank or in another liquid form.

Factors influencing the organization of enterprise finances

The organization of finances of business entities is influenced by 2 factors:

• Organizational and legal form of business;
• Industry technical and economic features.

Initially, when organizing business entities, the source of acquisition of production assets and intangible assets (intangible assets) necessary for carrying out economic activities is the authorized capital. It can be formed both in monetary and in kind terms and consists of shares belonging to each founder of the enterprise.

Proceeds from the sale of goods and materials are the main source of financial resources of the enterprise. Its timely receipt ensures the continuity of the circulation of funds and the reproductive process. The use of proceeds characterizes the initial stage of distribution processes. It reimburses the costs of production and sales of products. It serves as a source for the formation of a depreciation fund for the reproduction of fixed assets and intangible assets, payment of wages, contributions to the budget and extra-budgetary funds. The remainder represents the profit of the enterprise. The directions for its use and the amount allocated for investment will be determined independently.
A special place among the sources is occupied by equity capital - the difference between the amount of assets and the amount of external liabilities of the enterprise. Calculated based on balance data. Own capital is divided into constant (authorized capital) and variable. The variable part depends on the financial results of the enterprise. It forms reserve capital (from net profit) and additional capital (as a result of the revaluation of individual items of non-current assets and from share premium).

In addition to these sources, the company uses:

• Raised funds financial resources - funds received from the placement of shares, contributions from employees, legal entities and individuals;
• Borrowed funds - long-term loans from commercial banks, acquisition of fixed assets on the basis of financial leasing, funds from foreign investors, budget funds, etc.

62. FEATURES OF ORGANIZATION OF FINANCE OF COMMERCIAL ORGANIZATIONS OF VARIOUS ORGANIZATIONAL AND LEGAL FORMS

The functioning of each business entity of one or another form of ownership is associated with features in the organization of finance. They are manifested in the formation of the authorized capital (capital), the distribution of profits, the formation and use of cash funds, relationships with the budget, etc.
To a greater extent, the peculiarities of the organization of finances of enterprises of different forms of ownership are manifested in the formation of their financial resources. Thus, if in enterprises of state ownership financial resources are formed mainly from budget funds, then in enterprises of non-state ownership - mainly from partial (share) contributions of founders - legal entities and individuals.

At the same time, in market conditions, budget allocations for various purposes are significantly reduced for enterprises, even state-owned enterprises. At the same time, many enterprises acquire such sources of financial resources as dividends and interest on securities, income from participation in the activities of other enterprises and from transactions with currency and foreign currency values, etc.

A distinctive feature of enterprise finance is its dependence on the legal form of their organization.

Organizational and legal forms of management predetermine various features of the organization of finances of enterprises: the sources and procedure for the formation of the authorized capital, the system of profit (income) distribution, relationships with the budget, etc.

Finance of commercial organizations is a system of relations associated with the formation and use of financial resources of commercial organizations in order to ensure their activities and resolve issues of a social nature.

The following principles of organizing finance in the field of commercial activity can be distinguished:

obtaining and maximizing enterprise profits;


optimization of sources of financial resources;


ensuring the financial stability of commercial organizations, including the use of various mechanisms for protecting against business risks (insurance, hedging, creation of financial reserves);


creating investment attractiveness;


responsibility for the conduct and results of financial and economic activities.


These principles are determined by the main goal of a commercial organization - making a profit, as well as the desire of any business entity not only to maintain, but also to expand its participation in the market.
Commercial organizations operate in different areas: material production, trade and sales activities, provision of services, including information and financial. In modern conditions, in order to reduce business risks, organizations are diversifying their areas of activity, inter-industry mergers are taking place within the framework of integration processes, but the influence of the industry factor on the finances of commercial organizations in the Russian Federation remains. This is due to the fact that, according to Russian legislation, certain types of commercial activities are prohibited from being combined with other types of activities: for example, insurance companies cannot provide banking services, carry out production and trading operations, etc.; in some cases, specializing in one type of activity can give the greatest effect.


Industry factors that influence the peculiarities of financial organization are the seasonality of production, the duration of the production cycle, the peculiarities of the turnover of production assets, the degree of risk of entrepreneurial activity, etc. For example, agriculture (especially crop production) is characterized by the influence of natural and climatic factors on the production process, which determines its seasonal nature, high need for insurance protection. In these conditions, the attraction of borrowed funds for the formation of financial resources, the creation of reserve funds and insurance play an important role. Construction, as well as some industries with a long production cycle (for example, shipbuilding), is characterized by the presence of large volumes of work in progress, which also determines the need to generate financial resources through borrowed funds.


Natural and climatic factors may predetermine the receipt of rental income in relatively favorable business conditions (extractive industries). As a rule, under these conditions in many countries, income equalization within one industry is carried out on the basis of rent payments to the budget.


Industries with a relatively low level of profitability (agriculture, housing and communal services) have limited opportunities to expand sources of financial resources, including through the issuance of securities.
For industries with a high degree of occupational risk for workers (coal, chemical, gas industries, etc.), higher rates for social insurance against industrial accidents and occupational diseases are provided.


Finally, a high degree of risk is also inherent in the activities of financial intermediaries (insurance companies, credit institutions), which determines higher requirements for the amount of equity capital, the creation of specific financial reserves and the use of other mechanisms to ensure financial stability (for example, for insurance companies - reinsurance).


Industry factors also determine the size of a commercial organization. Thus, the steel industry, mechanical engineering and other branches of heavy industry usually involve large-scale enterprises, and trade, consumer services, and innovation activities are usually carried out through medium and small businesses. Thus, industry characteristics can predetermine the organizational and legal form of a commercial organization, and this, in turn, is another factor influencing the financial mechanism of the organization.


The organizational and legal form of a legal entity is established by the Civil Code of the Russian Federation (Chapter 4). In accordance with Art. 50 of the Civil Code of the Russian Federation, legal entities that are commercial organizations can be created in the form of business partnerships and societies, production cooperatives, state and municipal unitary enterprises. Various organizational and legal forms determine the features of the formation of financial resources at the time of creation of the organization, distribution of profits, financial responsibility of founders and participants.


Thus, financial resources at the time of creation of joint-stock companies are formed from funds received from the placement of shares; partnerships and cooperatives - from the placement of shares; unitary enterprises - at the expense of budget funds. Business companies have the opportunity to attract financial resources by placing debt securities.


The organizational and legal form influences the features of profit distribution: in joint stock companies, part of the profit is distributed in the form of dividends among shareholders; the profit of unitary enterprises can go to the budget not only in the form of tax, but also non-tax payments (unless the owner makes a different decision); in production cooperatives, part of the entrepreneurial income (profit) is distributed among the members. All commercial organizations, as a rule, form reserves through deductions from profits, but for joint-stock companies the minimum amount of reserves is legally established (at least 15% of the authorized capital), the amount of contributions to the reserve fund (at least 5% of net profit) and the direction of its use (covering losses, repaying company bonds and repurchasing shares in the absence of other sources). Production cooperatives contribute a portion of business income to an indivisible fund.


In general, the finances of commercial organizations as a link in the financial system, regardless of organizational, legal and industry characteristics, have the following features:

financial resources are owned by commercial organizations (with the exception of unitary enterprises);


financial management of a commercial organization is focused on achieving its main goal - making a profit;


limited government regulation of the finances of commercial organizations compared to other parts of the financial system. State regulation of the formation and use of financial resources of commercial organizations is associated with the determination of tax obligations, as well as obligations arising from the possible use of budget funds (subsidies, subventions, state and municipal orders, budget investments, budget loans).


The main form of business in a market economy is a joint-stock company.


A joint stock company is an organizational and legal form of association formed on the basis of the voluntary consent of legal entities and individuals who pooled their financial and material resources and issued shares for the purpose of making a profit.


A joint stock company is a legal entity and has its own name, charter, seal and balance sheet. According to the charter, it can carry out any types of activities that do not contradict current legislation. In addition to the types of activities, the charter must indicate the types of shares that are issued, their par value, the number of shares acquired by the founders, as well as responsibility for late issue of shares.


Each joint stock company has complete economic independence in resolving constituent issues, namely in the production and distribution of products, remuneration of its employees, setting prices, distribution and use of net profit and other results of business activities. A joint stock company is liable for its obligations with all its property, but is not liable for the obligations of its shareholders. At the same time, shareholders are liable for the company’s obligations within the limits of their personal contribution to the capital.


Joint stock companies can be of open and closed types. The difference between them is that closed joint stock companies can create a limited number of shareholders, while the number and composition of shareholders of an open company are not limited.


The authorized capital of an open joint stock company is formed by selling shares in the form of open subscription, and in closed joint stock companies - only through contributions from the founders, since shares are not received by open subscription. In addition, a shareholder of an open company can independently dispose of his shares, that is, sell them, transfer them to other persons, or pledge them as collateral without the consent of other shareholders of his company. A member of a closed joint stock company cannot sell his share without the consent of other shareholders who have a preemptive right to purchase these shares.


The creation and functioning of joint stock companies is mediated by financial relations, which cover monetary relations with the founders of the company and their labor collectives, suppliers and customers, the budget and extra-budgetary funds, insurance companies and banks, as well as monetary relations associated with the receipt and distribution of their own income and savings, formation and use of appropriate funds of funds. These monetary relations practically express the essence of finance of joint-stock companies, which take an active part in the formation of income and savings, their distribution and control over their use.


With the formation of a joint stock company, its authorized capital is formed, which represents the total amount of funds reflected in its charter. The size of the authorized capital of an open joint-stock company is no less than 1250 minimum wages, and a limited liability company - no less than 625 minimum wages.


Due to the created authorized capital in joint-stock companies, fixed assets and current assets are formed - the material basis of the production process.
In the course of its activities, a joint stock company incurs certain expenses, receives revenue and profit. Profit is calculated in the same way as in enterprises of other forms of ownership and is the difference between the proceeds from the sale of products (performance of work, provision of services) minus excise taxes, VAT and the costs of production and sale of these products (performance of work, provision of services). If expenses exceed revenues (without associated taxes), the company will suffer losses.
The total income received is used primarily to pay bank interest on loans, established taxes and payments to the budget. The remaining profit is considered net and distributed at the discretion of the joint stock company. Part of the net profit can be directed to the production and social development of society, the payment of interest on bonds and to the reserve fund. The net profit that remains is used to pay dividends to shareholders. The amounts of deductions from net profit in these areas are established by the general meeting of shareholders of the company. The procedure for the formation and use of the reserve fund is determined by the company's charter. The fund's funds are used to cover unexpected losses of the joint-stock company. At the expense of this fund, in the event of a lack of net profit, interest on bonds and dividends on preferred shares can be paid, as well as shares can be redeemed from shareholders in the absence of other funds.


When distributing net profit in appropriate areas, the financial condition of the joint-stock company is taken into account.


One of the indicators characterizing the financial condition of a joint stock company and affecting the distribution of net profit is the share (amount) of profit per share.


Using this indicator, you can really assess the efficiency of the joint-stock company and its financial condition.


The amount of net profit per share can be calculated using the formula
If the return on share capital decreases, the question of terminating the company's activities may arise.


Termination of the company's activities is carried out through its reorganization or liquidation. The decision on the reorganization of the company is made by general meetings of shareholders, and in cases provided for by law, by the antimonopoly committee or court.
Reorganization of a company can be carried out through its merger and accession, division and separation of other independent companies, transformation into another organizational and legal form.

CONTENT AND ORGANIZATION OF FINANCE OF NON-PROFIT ORGANIZATIONS AND INSTITUTIONS

Finance of commercial organizations is an economic category that expresses relations associated with the formation, distribution and use of financial resources of organizations to carry out their economic activities. The finances of commercial organizations are an integral part of the state’s financial system, occupying a decisive position in the structure of the financial system, since it is at their level that the predominant mass of the country’s financial resources is formed and the processes of distribution and redistribution of value begin.

The role of finance of commercial organizations in ensuring effective economic and social development of the country is as follows:

1. Financial resources that are concentrated by the state and used by it to finance various social needs are formed mainly from the finances of commercial organizations.
2. The finances of commercial organizations form the financial basis for ensuring the continuity of the production process aimed at meeting the demand for goods and services.
3. Part of the financial resources generated by commercial organizations is directly used for consumption purposes, thereby contributing to the solution of social problems facing society.
4. The finances of commercial organizations can serve as an instrument of state regulation of the economy; with their help, the needs of expanded reproduction are determined based on the optimal ratio between funds allocated for consumption and accumulation, as well as regulation of sectoral proportions in the national economy.

Without clear and coordinated work of the financial mechanism of commercial organizations, a market economy cannot function effectively. The state's task is to find the optimal combination of enterprise independence with state regulation.

In the process of economic activity, commercial organizations enter into various financial relationships. According to its economic content, the entire set of financial relations can be grouped into the following areas:

• financial relations between commercial organizations and their founders. They arise at the time of creation of the organization and are associated with the formation of the organization’s own capital, and in the process of activity - in connection with receiving funds from them free of charge, as well as in connection with the distribution of profits;
• financial relations between individual commercial organizations related to the production and sale of products, the emergence of newly created value. These include relations between suppliers and buyers of raw materials, materials, finished products, etc., financial relations with construction organizations when carrying out investment activities, with transport organizations when transporting goods, with communications companies, as well as relations regarding financial sanctions for violation contractual obligations. The final financial result of the commercial activities of organizations largely depends on these relationships;
• financial relations between commercial organizations related to raising funds on an equity and debt basis (issue and placement of securities, issue of bonds, obtaining loans, participation in joint activities, etc.). The possibility of attracting additional sources of financing for business activities depends on these relationships;
• financial relations between commercial organizations within financial and industrial groups, holdings, unions, associations (as well as with higher organizations within such associations), associated with the formation, distribution and use of centralized targeted monetary funds and reserves to finance industry programs, research and development etc. This group of relations influences the sectoral redistribution of funds and optimization of their use;
• financial relations between commercial organizations and the banking system related to settlement and cash services in commercial banks, receipt and repayment of loans, payment of interest on loans, and the provision of other banking services;
• financial relations between commercial organizations and insurance organizations related to the insurance of property, individual employees, and business risks;
• financial relations between commercial organizations and budgets of various levels and extra-budgetary funds related to the transfer of taxes, fees and other payments to the budget and extra-budgetary funds;
• financial relations within a commercial organization between the organization and its employees related to the distribution of profits, payment of interest on loans received from employees, provision of loans for the purchase of housing, durable goods, etc., collection of fines and compensation for material damage caused, withholding tax on income of individuals, etc.

Each of the listed groups of financial relations has its own characteristics, but the final result of such interaction is the mutual provision of financial resources, providing each sector of the economy with the opportunity to realize its functions.

The essence of finance of commercial organizations is most fully manifested in their functions. Currently, the most common point of view in the economic literature is that the main functions of finance of commercial organizations are distribution and control.

Distributive function is associated with the organization’s implementation of its activities in the process of distributing the social product, national income and national wealth. The distribution function is based on the fact that the financial resources of an enterprise are subject to distribution in order to fulfill monetary obligations to the budget, other commercial organizations, and individuals. During primary distribution, when an enterprise receives proceeds from the sale of products, the funds received are used to reimburse consumed means of production to ensure the continuity of the production process itself. As a result of this distribution, profit remains, which, in turn, is subject to secondary redistribution.

Control function finance of commercial organizations is carried out through external and internal control.

External control the finances of commercial organizations are carried out by state and non-state bodies (the Ministry of Finance of the Russian Federation, the Federal Tax Service of the Russian Federation, commercial banks when issuing loans, independent audit firms when conducting audits, etc.), as well as from shareholders.

Internal control carried out by the financial services of the enterprise and internal auditors. Internal control involves the implementation of financial control over the results of the production and economic activities of the organization, as well as over the process of formation, distribution and use of financial resources in accordance with current and operational plans. Thus, the control function is a derivative of the distribution function.

To implement the control function in the organization, standards and financial indicators are developed. The main financial indicator is the stable availability of funds from the organization. Other financial indicators include: debt to suppliers, bank, budget, employees, availability of working capital from relevant sources, losses, liquidity, solvency, etc.

The organization of finances of commercial organizations is based on compliance with a number of principles:

• complete independence. This principle presupposes independence in the use of their own and equivalent funds, which allows business entities to independently determine the scope of economic activity, sources of financing, directions for investing funds in order to make a profit;
• self-sufficiency. This principle means that the organization must cover all its expenses through its own production activities, thereby ensuring the renewability of production and the circulation of the organization’s resources;
• responsibility for business results. This principle means the organization's responsibility for all the risks it assumes in a market economy;
• financial planning. The principle determines the direction of cash flows for the near future and for the future; with the help of this principle, planning of financial results is ensured;
• provision of financial reserves. The implementation of this principle involves the formation of financial reserves for any organization. Financial reserves ensure sustainable production activities in the face of possible fluctuations in market conditions, risks, etc.;
• financial discipline. In accordance with this principle, the organization promptly and fully fulfills its obligations to partners, the state, and its employees;
• division of funds involved in production into own and borrowed;
• differentiation between ordinary and investment activities of the organization.