Functions of the Company's Finance

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

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

Finance of enterprises - this is an economic relationship directly related to the circulation of cash flows, the use of income and funds of funds in the production and reproduction process.

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

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

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

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

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

In general, the basis of finance isdistributive relations, necessary for financing production processes. Violation of the uninterrupted turnover of funds, increase in costs can lead to a decrease in revenues, competitiveness and, consequently, financial stability. To prevent such a phenomenon, the control functions of the organization's finances are necessary.

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