Finance companies as part of the financial system are a crucial place in the structure of financial relations of society. They function in social production, which creates a gross domestic product, tangible and intangible benefits, the national income - main source of funding. Therefore, the state finance companies will insure the satisfaction of social needs, financial stability of the country.Finances, as well as finance in general, inherent in some general and specific features. We must take into account also features caused by the operation of finance in different sectors of the economy. A common feature of finance companies is that they express a set of economic (financial) relations connected with the distribution of gross domestic product. Specific features of finance companies express money relations that depend on the initial distribution of gross domestic product, the formation and use of receipts and decentralized funds. Features finance companies due to their operation in various fields of economy, examine further.
Finance companies are directly related to cash flows. It is often the term "finance" is identified with money, available financial resources. However the funds or financial resources do not disclose the concept of "finance", if not essentially determine the economic nature of the latter. Such material / general properties underlying finance laws is the reproductive process and monetary relations that arise between members of the public at all stages of play, at all levels of management in all spheres of social activity. However, not all money belonging to the financial relationship. Cash converted to financial relationships when cash flow is relatively independent. This happens in the formation, distribution, use of cash proceeds and funds in accordance with the purpose in the form of financial resources. To finance such groups include financial relationships:
* Related to a statutory fund entities;
* Related to education and the distribution of income: earnings, gross and net income, profits, cash assets of enterprises;
* Arising in business with the state on tax and other payments to the budget and trust funds, budget financing, obtaining subsidies. That occur between entities in connection with investing in stocks and getting them on the implementation of revenue share contributions and participation in the distribution of profits from joint ventures, acquisition and payment of penalties;
* Formed in enterprises with banks, insurance companies in connection with the receipt and repayment, payment of interest on the loan and other charges, interest and storage allocation of funds in connection with insurance payments and reimbursement for various types of insurance;
* Formed in enterprises in connection with the distribution of internal revenue.
Thus, finance companies are subject to economic relations connected with the movement of funds, the formation and use of funds. The subjects of such relations can be businesses and organizations, banks and insurance companies, extrabudgetary funds, investment funds, audit organizations and other entities that are legal entities.
In the process of reproduction (production, distribution, exchange and consumption) is the distribution of gross domestic product for the intended purpose, and its distribution between the state and business entities, each of which receives its share of the product in cash. Thus, money creates the conditions for the emergence of Finance as an independent sphere of monetary relations, as the industrial relations system.
The immediate area of financial relations business processes are the primary distribution of gross domestic product (c + v + m), when she shared the cost of material inputs (c), necessary product (v), additional product (m). This created various funds cash income. With the help of finance in social production is cash flow, which acquires a specific form of financial resources that form the entities and the state.
Finance companies - an economic relationships associated with cash flows, formation, distribution and use of income and cash funds of economic entities in the process of reproduction.
During playback finance as shown by economic category and express their identity, their internal property through the following functions:
- Formation of financial resources in the production and economic activity;
- Distribution and use of financial resources for operational production and investment activities to meet their financial obligations to the budget, banks, business entities;
- Control the formation and use of financial resources into play.
Formation of financial resources in the business happens during a statutory fund, as well as in the distribution of payments received as a result of the return of prepaid funds in capital and circulating assets, using the proceeds to the formation of the reserve fund, fund of fund accumulation and consumption. In this context, the term "formation" and "distribution" should be treated as a single process of social production. Formation of cash funds always means that the gross income.
The formation and use of financial resources for enterprises - is the formation of monetary funds for financing the operating and investment activities, financial obligations to the state and other entities.
Cash flows quantitatively reflect all stages of the process of reproduction through the formation, distribution and use of cash income, the trust funds. So finance is disputable indication of cost disparities: the deficit of funds, non-payment, misuse of funds, losses and other negative phenomena in the financial-economic activity of enterprises. That finance inherent capacity to monitor financial and business enterprises. The task of financial services companies is the fullest use of these properties to finance the organization of effective financial control.
Control of formation and use of financial resources arising from inherent ability to objectively reflect the finance and quantitative cost ratio of production and sale of products and services. In particular, the directions and use of financial resources related to the obligations of companies to financial and credit system and entities. Money controls the relationship between enterprises and organizations in the process of payment of the goods supplied, services rendered, work performed allows immediately determine whether the observed conditions of economic agreements.
Under conditions of market economy, when companies must decide their own financial security problems of production and business and investment activity is greatly increased role of finance companies. The most important task is the recent stability of economy and social life in the country. This is achieved in optimizing the distribution and redistribution of GDP as at the enterprise level and at national level. At the macroeconomic level of finance provided financial resources through the budget and extrabudgetary funds.
The important role of finance companies to ensure balance in the economy of material and monetary funds for consumption and accumulation. Ensuring that balance is largely influenced by currency volatility, monetary, of settlement and payment discipline in the national economy.
Finance, participating in the distribution of value created by the gross domestic product, ensuring the formation and use of income and cash assets, directly linked to other economic categories and tools of economic mechanism: business accounting, the price of credit. Therefore, finance can be an important tool for economic stimulation, control of the economy and management.
Finance is an essential component of the management of the economy. Without the finances can not provide an individual kruhooborot production assets on an extended basis, to introduce scientific and technological achievements, encourage investment, to regulate the restructuring of the economy.
Mandatory for the effective functioning of the finance companies are:
- Diversity of ownership;
- Freedom of enterprise and independence in decision making;
- Free market pricing and competition;
- Self-financing business;
- Providing legal rules of economic behavior of entrepreneurs;
- Restrictions and regulations of state intervention in business.
Life has proved the efficacy of the market mechanism in providing a balanced economy, rational utilization of manpower, material and financial resources. The market system promotes the creation of flexible plants that can easily adapt to customer needs and achievements of scientific and technical progress.
|