The financial policy of an organization is the targeted use of financial resources for the implementation of its strategic and tactical objectives established by the constituent documents (Charter).
To implement financial policy, the following tasks can be solved: strengthening positions in the market of goods (works, services), achieving an acceptable sales volume, profit, return on assets and equity capital, maintaining solvency and liquidity of the balance sheet, increasing the welfare of owners or shareholders.
development of an optimal concept for managing cash (financial) flows, ensuring a combination of high solvency and profitability with protection from risks; *
determination of the main directions of use of financial resources for the current period (decade, month, quarter, year) and the near future. *
determination of practical actions aimed at achieving set goals.
The unity of the three most important links determines the content of financial policy, the strategic objectives of which are: *
profit maximization; *
optimization of the structure and cost of capital; *
security financial stability, business and market activity; *
achieving financial openness; *
usage market methods attraction; *
development of an effective financial management mechanism.
Based on the duration of the period and the nature of the tasks being solved, financial policy is divided into financial strategy and tactics.
A financial strategy is a set of key goals and the main ways to achieve them. A strategy cannot be considered a simple definition of desired goals and possible ways to implement them. The strategy should reflect not the desire of the organization’s management, but real opportunities its development. Therefore, strategy expresses the organization’s response to the objective internal and external conditions of its activities. Financial strategy is a long-term course of financial policy, designed for the future and involving the solution of large-scale development problems.
In the process of its development, the main trends in the development of financial activities are predicted, the concept of the formation and use of financial resources is formed, and the principles of financial relations with the state and counterparties are outlined.
From the position of strategy, they formulate specific goals and objectives of production and financial activities and make current management decisions.
The most important areas of developing a financial strategy include: *
analysis and assessment of financial and economic condition; *
development of accounting and tax policies; *
development of credit policy; *
financial planning; *
fixed capital management; *
depreciation policy; *
control working capital and accounts payable; *
debt management; *
management of current (operating) costs, product sales, revenues and profits; *
financial logistics (procurement management); *
pricing policy; *
choice of dividend and investment policies; *
assessment of activity and market value.
An integral part of the financial strategy is long-term financial planning, sales volume and costs, profits and profitability, financial stability, solvency, etc.
Financial tactics are aimed at solving more specific problems of a specific stage of development of an organization through timely changes in the ways of organizing financial relations, redistribution of monetary resources between types of expenses and structural divisions(branches). With a relatively stable financial strategy, financial tactics must be flexible, which is caused by changes in market conditions (demand and supply for resources, goods, services and capital).
Strategy and tactics are components of financial policy. To make management decisions in the field of financial policy, they use the information provided in financial and statistical reporting and in operational and management accounting, which serves as the main source of data for determining indicators used in financial analysis, internal planning and control.
Test questions: 1.
Describe the purpose and objectives of the financial policy of the enterprise (corporation). 2.
The organization of financial policy is based on certain principles (the main ones are shown in Fig. 1.3).
The principle of self-sufficiency and self-financing. Self-sufficiency assumes that the means that ensure the functioning of the organization must pay for themselves, i.e. bring income that corresponds to the minimum possible level of profitability. Self-financing means full recoupment of the costs of production and sales of products, investment of funds in the development of production at the expense of one’s own funds and, if necessary, through bank and commercial loans. The implementation of this principle is one of the main conditions for entrepreneurial activity, ensuring the competitiveness of the organization. In countries with developed market economies, the level of self-financing is considered high if the share of a business firm’s own funds reaches 70% or more.
Rice. 1.3. Basic principles of organizing financial policy
The principle of self-government or economic independence consists in independently determining the development prospects of the organization (primarily based on the demand for products manufactured, work performed or services provided); independent planning of your activities; ensuring the production and social development of the company; independently determining the direction of investing funds in order to make a profit; disposal of manufactured products sold at prices independently established, as well as independent disposal of the net profit received. In conditions market economy the rights of organizations have expanded significantly, but it is impossible to talk about complete economic independence, since certain areas of economic activity of entrepreneurial organizations are determined and regulated by the state.
The principle of financial responsibility means the presence of a certain system of responsibility of the organization for the conduct and results of economic activities. Financial methods The implementation of this principle is different for individual organizations, their managers and employees, depending on the organizational and legal form. In accordance with Russian legislation, organizations that violate
contractual obligations (usually in terms of timing and quality), accounting discipline, allowing late repayment of bank loans or repayment of bills, violation of tax laws, are brought to various types of liability depending on the nature of the financial offense.
In accordance with the Federal Law “On Insolvency (Bankruptcy)”, untimely fulfillment by a debtor business firm of its obligations or duties within three months from the date of their fulfillment is a sign of bankruptcy. An arbitration court may initiate bankruptcy proceedings against such an organization if its total debt is at least 500 times the minimum wage per month.
Interest in performance results. The objective necessity of this principle is determined by the main goal of entrepreneurial activity - systematically generating profit. Interest in the results of economic activity is equally inherent in employees, management of the organization and the state. In order to interest the company's employees in the results of its activities, management develops forms, systems and amounts of remuneration, incentive and compensation payments, and also uses certain social guarantees.
The principle of monitoring the financial and economic activities of an organization. As is known, the finances of an organization perform a control function, since this function is objective, then subjective activity is based on it - financial control.
There are several types of control depending on the subjects performing it.
National (non-departmental) control is carried out by government and management bodies. IN Russian Federation- these are the highest bodies of state power and government - the Federal Assembly and its two chambers - the State Duma and the Federation Council. The Federal Assembly of the Russian Federation forms the Accounts Chamber as a permanent body of state financial control.
The Ministry of Finance of the Russian Federation and its local bodies play an important role in the implementation of financial control.
Departmental control is carried out by control and audit departments of ministries and departments. These authorities carry out checks
financial and economic activities of subordinate enterprises.
On-farm financial control is carried out by the financial services of business organizations, primarily finance department or financial department, accounting, audit commission. Their functions include checking the production and financial activities of the enterprise itself, as well as its structural divisions. The main task of internal control is internal audit, an inspection on behalf of the company's management. Internal audit must be carried out continuously and cover all areas of the company’s economic activity, be substantive in nature and be effective.
Independent financial control is carried out by audit firms (services), as well as individual auditors. The object of this control is the activities of all economic entities. The main objectives of the external audit: checking the reliability of financial and accounting statements and compliance with their laws and regulations, examination of the financial and economic condition, assessment of solvency and, finally, development of recommendations for improving and streamlining financial and economic activities, tax planning, and financial strategy.
The principle of forming financial reserves is associated with the need to ensure business continuity, which is associated with great risk due to fluctuations in market conditions. Financial reserves can be formed by business firms of all organizational and legal forms from net profit, after taxes and other obligatory payments. It should be noted that it is advisable to store funds allocated to reserve funds in liquid form so that they generate income and, if necessary, can easily be converted into cash capital.
(Kovalyova A.M., Lapusta M.G., Skamai L.G. Firm finances. - M.: INFRA-M, 2002.)
1.5.Types of financial policies of an organization and their characteristics
In terms of direction, the financial policy of an organization is divided into internal and external.
Domestic financial policy is aimed at financial relations, processes and phenomena occurring within the organization.
Foreign financial policy is aimed at the activities of the organization in external environment: in financial markets, in credit relations, etc.
Based on the duration of the period and the nature of the tasks being solved, financial policy is divided into financial strategy and financial tactics.
Financial strategy - a long-term course of financial policy, calculated for the future and involving the solution of large-scale problems of the organization’s development. Financial decisions and activities intended for a period of more than 12 months or for a period exceeding the operating cycle are classified as long-term financial policy . In the process of its development, the main trends in the development of the organization are identified:
- growth in production and sales volumes;
§ leadership in competition (expressed by return on capital and sales);
§ maximizing the price (cost) of the organization;
§ determination of financial relations with the state (tax policy), banks (credit policy) and partners (suppliers, buyers, contractors, etc.).
Strategy involves choosing alternative paths for the development of the organization. At the same time, they use forecasts, experience and intuition of specialists to mobilize financial resources to achieve their goals. From the position of strategy, they formulate specific goals and objectives of production and financial activities and make operational management decisions.
(Commercial budgeting / V.V. Bocharov - St. Petersburg: Peter, 2003.)
To the most important elements financial strategy include:
§ development of a credit strategy;
§ management of fixed capital, including depreciation policy;
§ pricing strategy;
§ selection of dividend and investment strategy.
However, the choice of one or another financial strategy does not guarantee receipt of the predicted effect (income) due to the influence of external factors, in particular, the state of the financial market, tax, budget and monetary policies of the state.
An integral part of the financial strategy is long-term financial planning, focused on achieving the main parameters of the organization’s current activities: volume and cost of sales, profit and profitability, financial stability and solvency.
Financial tactics is aimed at solving local problems of a specific stage of development of the organization through timely changes in the ways of implementing financial relations, redistributing
distribution of monetary resources between types of expenses and structural divisions (branches). Financial decisions and activities calculated for a period of less than 12 months or for the duration of the operating cycle if it exceeds 12 months are classified as short-term financial policy.
With a relatively stable financial strategy, financial tactics should be flexible, which is determined by changes in market conditions (demand and supply for resources, goods and services). The strategy and tactics of financial policy are closely interrelated. A correctly chosen strategy creates favorable opportunities for solving tactical problems. The tactical objectives that financial management should achieve are:
§ development of accounting policies;
§ development of credit policy;
§ management of current assets and accounts payable;
§ management of current (operating) costs, income and profit;
§ sufficiency of cash receipts in the short term (ten days, months, quarters, years);
§ return on capital and sales (competitiveness at the operational level), etc.
Consequently, the priority task of operational financial management of an organization is to ensure its liquidity and profitability. A weighty argument in favor of maintaining sufficient liquidity of the balance sheet are such dangerous consequences insolvency, such as a declaration of bankruptcy and termination of the activities of a business entity. All strategic and tactical decisions are reviewed to determine whether they contribute to or disrupt financial balance. To maintain the solvency and liquidity of the organization's balance sheet, it is advisable to effectively manage its cash flows (inflow and outflow of funds). Cash is the most scarce resource in a market economic system, and the success of an enterprise is largely determined by the ability of its management to constantly generate cash flows. Therefore, the problem of planning and controlling cash flows is of priority importance for the enterprise.
4 Blank I.A. Profit management. – Kyiv: Nika-Center, 1998.
11 Wang H.J.K. Fundamentals of financial management / trans. from English I.I. Eliseva. –M.: Finance and Statistics, 2003.
37 Financial management / ed. E.S. Stoyanova. – M.: Perspective, 2001.
The purpose of choosing financial tactics is to determine the optimal amount of current assets and sources of their financing, both own and attracted.
Financial policy in corporate structures (holding companies, financial-industrial groups, etc.) should be carried out by professionals - chief financial managers (directors) who have all the information about the company's strategy and tactics. To make management decisions, they use the information provided in accounting and statistical reporting and operational financial accounting, which serves as the main source for determining indicators used in financial analysis and intra-company cash flow planning.
Decisions that determine financial policy are divided into long-term and short-term.
The principles for forming short-term and long-term financial policies are interdependent. Short-term financial decisions must be related to and contribute to the achievement of long-term financial goals. And this, in turn, is closely related to issues of strategy and tactics in financial policy.
If financial policy is aimed at developing, improving financial relations or positive result for the corresponding object of financial relations, it should be considered constructive.
If personal, group and other interests, under certain conditions, are realized to the detriment of the development of the object, then such a financial policy is considered destructive.
In the practice of market relations, there are often cases when companies appear that do not intend to develop or work for a long time. Their task is shortest time get the maximum amount of money from partners, avoiding investments in production, and quickly close down and disappear. The policy of the management of such companies is an example of destructive financial policy.
Financial policy may be illegal (criminal)), if it contains deviations from current legislation. Not all destructive financial policies are illegal, since subjects of not only constructive, but also destructive policies strive to act within the law.
40 Chernov V.A. Financial policy of the organization: textbook. village for economy universities / V.A. Chernov; edited by M.I. Bakanova. – M.: NNITI-Dana, 2003.
1. Essence, goals and objectives of financial policy
2. Essence, goals and objectives of the organization’s financial policy
3. Object, subject and subject of the organization’s financial policy
4. Principles of organizing financial policy
5. Concept and general principles of formation of an organization’s accounting policy
6. Technology for forming the organization’s accounting policy
7. Concept and principles of the organization’s tax policy
8. System of taxes and fees in the Russian Federation
9. Tax behavior of the organization
10. Main directions of the organization’s tax policy
11. The concept of the organization’s pricing policy
12. Forecasting market conditions and financial strategy of the enterprise. Basic aspects of marketing in an enterprise
13. Supply and demand curves
14. Pure competition
15. Price adjustments: discounts, surcharges, offsets
16. State price regulation policy
17. Variable and fixed costs
18. Profitability threshold, concept and graphical method for its determination
19. Current assets of the organization: concept and types
20. Indicators of efficiency in the use of current assets
21. Factoring
22. Management of the organization's monetary assets.
23. Financial strategy and tactics, goals and main directions
24. Financial planning in an enterprise, principles, content and objectives
25. Features of the enterprise’s pricing policy
26. Financial resources
1. Essence, goals and objectives of financial policy
Financial policy is a set of targeted actions using financial relations (finance). Financial policy involves establishing goals and means of achieving goals. Financial policy is a set of government measures to use financial relations for the state to perform its functions.
Development of a general concept of financial policy, determination of its main directions, goals, main tasks.
Creation of an adequate financial mechanism.
Management of financial activities of the state and other economic entities.
The basis of financial policy is strategic directions that determine the long-term and medium-term prospects for the use of finance and provide for the solution of main tasks arising from the peculiarities of the functioning of the economy and social sphere of the country. At the same time, the state selects current tactical goals and objectives for the use of financial relations. All these activities are closely interconnected and interdependent.
The objectives of financial policy are:
providing conditions for the formation of the maximum possible financial resources;
establishing a rational distribution and use of financial resources from the state’s point of view;
organization of regulation and stimulation of economic and social processes financial methods;
development of a financial mechanism and its development in accordance with the changing goals and objectives of the strategy;
creation of an effective and business-like financial management system.
In the process of implementing financial policy, it is especially important to ensure its relationship with other components of economic policy - credit, price, monetary.
Evaluation of the results of the state's financial policy is based on its compliance with the interests of society and the majority of its social groups, as well as on the achieved results arising from the set goals and objectives. Important component financial policy - the establishment of a financial mechanism through which all state activities in the field of finance are carried out.
Financial mechanism is a system of forms, types and methods of organizing financial relations established by the state.
Elements of the financial mechanism:
forms of financial resources;
methods of their formation;
a system of legislative norms and standards that are used to determine state income and expenses;
organization of the budget system, corporate finance and the securities market.
The objectives of financial policy may be:
political goals, i.e. achieving goals in the field of foreign and domestic policy
economic goals, that is, achieving economic goals at various levels
social goals, that is, achieving goals in the field public relations(social classes and layers of the population, social benefits, distribution of social benefits).
Financial policy, as a set of targeted actions using financial instruments, levers and incentives, can be implemented at various levels:
regional
national
at the level of individual regions within the country
at the level of an enterprise, organization (economic entity)
individual entrepreneur
at the individual household level
The most important components of financial policy at the state level are:
fiscal policy
tax policy
customs policy
monetary policy
investment policy
Financial policy is part of general economic policy.
2. The essence, goals and objectives of the organization’s financial policy
The financial policy of an enterprise is the targeted use of finance to achieve strategic and tactical objectives. The content of the enterprise’s financial policy is multifaceted and includes the following aspects:
development of a concept for enterprise financial management that provides a combination of high profitability and low risk;
determination of the main directions of use of financial resources for the current period (month, quarter) and for the future (year and longer period), taking into account the plans of enterprises and commercial activities;
practical achievement of the set goal (financial analysis and control, choice of financing methods, assessment of the economic efficiency of investment projects.
Financial policy includes financial strategy and tactics.
A financial strategy is a financial course designed for the long term and involves solving large-scale problems of enterprise development. In the process of its development, the main trends in the development of finance are predicted, the concept of their use is formed, and the principles of financial relations with the state (tax policy) and partners are outlined. Strategy involves choosing alternative ways of developing an enterprise. In this case, forecasts, experience, and intuition of specialists are used to mobilize financial resources to achieve the goal. From the position of strategy for the formation of specific goals and objectives of production and financial activities, operational management decisions are made.
The strategic objectives of financial policy are the following: profit maximization; optimization of capital and support of the financial stability of the enterprise; achieving information transparency for owners, investors and creditors; security investment attractiveness; use of market mechanisms for raising funds (issue of securities); effective financial management based on diagnostics of the financial condition and selection of strategic goals for the enterprise, adequate to market conditions and a plan for achieving them.
When developing an effective management system, problems of unity of such conflicting goals as production development and maintaining a sufficiently high liquidity of the enterprise constantly arise.
The development of a financial strategy for an enterprise involves making decisions on accounting, tax, credit, depreciation, pricing and dividend policies; management of working capital and accounts payable, operating expenses, product sales and profit.
The financial strategy is implemented thanks to long-term financial planning, focused on achieving a given level of the main parameters of the enterprise’s activity: sales volume and cost, profit and profitability, financial stability and solvency, price competitiveness.
Financial tactics determine the ways and means of solving local problems at a specific stage of enterprise development through timely changes in financial relations and redistribution of monetary resources between individual types of expenses. If the financial strategy is relatively stable, financial tactics should be flexible, ensuring a quick response to changes in market conditions (demand and supply for resources, goods and services). The strategic and tactical aspects of financial policy are closely interrelated: right choice strategy creates favorable opportunities for solving tactical problems.
3 . Object, subject, subject of the financial policy of the enterprise
The financial policy of an organization is an integral part of its economic policy. It expresses a set of measures for organizing and using finance to carry out its functions and tasks, a qualitatively defined direction of development relating to the spheres, means and forms of its activities, the system of relationships within the organization, as well as the organization’s position in the external environment.
The object of financial policy is the economic system and its activities in connection with the financial condition and financial results, the cash turnover of an economic entity, which is a flow of cash receipts and payments. Each direction of spending funds must correspond to certain sources: in an enterprise, sources include equity capital and liabilities, which are invested in production and take the form of assets. In general, the constant process of cash flow can be presented in Fig. 1.2.
In an existing organization, it is impossible to determine the starting and ending points of cash turnover. The amount of cash available to the organization (the central part of the figure) changes over time and depends on the nature of the production process, sales volume, repayment of accounts receivable, etc. The amount of inventories of raw materials, work in progress, finished goods in warehouse, accounts receivable and payable commercial Credit also fluctuates depending on the sales, production process and financial policy of the organization in relation to accounts payable and receivable, and the formation of inventories.
The subject of financial policy is intra-company and inter-company financial processes, relationships and operations, including production processes, forming financial flows and determining the financial condition and financial results, settlement relationships, investments, issues of acquisition and issue of securities, etc.
Subjects of financial policy are the founders of the organization and management (employers), financial services that develop and implement the strategy and tactics of financial management in order to increase the liquidity and solvency of the enterprise through the receipt and effective use of profits.
Financial policy is about setting goals and objectives financial management, as well as in determining and using methods and means of their implementation, in constant monitoring, analysis and assessment of the compliance of ongoing processes with the intended goals.
Financial policy is manifested in a system of forms and methods of mobilization and optimal distribution of financial resources, determines the selection and development of financial mechanisms, methods and criteria for assessing the effectiveness and feasibility of the formation, direction and use of financial resources in management.
4 . Principles of organization and types of financial policies of an enterprise
The organization of financial policy is based on certain principles.
The principle of self-sufficiency and self-financing. Self-sufficiency assumes that the means that ensure the functioning of the organization must pay for themselves, i.e. bring income that corresponds to the minimum possible level of profitability. Self-financing means full recoupment of the costs of production and sales of products, investing in the development of production at the expense of one’s own funds and, if necessary, through bank and commercial loans.
The principle of self-government or economic independence is:
independently determining the development prospects of the organization (primarily based on the demand for products manufactured, work performed or services provided);
independent planning of your activities;
ensuring the production and social development of the company.
The principle of financial responsibility means the presence of a certain system of responsibility of the organization for the conduct and results of economic activities. Financial methods for implementing this principle are different for individual organizations, their managers and employees, depending on their organizational and legal form.
The principle of interest in the results of activities. The objective necessity of this principle is determined by the main goal of entrepreneurial activity - systematically generating profit.
The principle of monitoring the financial and economic activities of an enterprise. As is known, the finances of an enterprise perform a control function, since this function is objective, subjective activity - financial control - is based on it.
There are several types of control depending on the subjects performing it:
1) national (non-departmental) control is carried out by state authorities and management;
2) departmental control is carried out by control and audit departments of ministries and departments;
3) independent financial control is carried out by audit firms.
The principle of forming financial reserves is associated with the need to ensure the continuity of business activity, which is associated with great risk due to fluctuations in market conditions.
5. Concept and general principles of formation of an organization’s accounting policy
The general scheme and features of accounting for the coming year drawn up by the chief accountant and approved by the head of the organization; one of the main documents establishing the rules for maintaining accounting and tax accounting in an organization is submitted upon request to the tax authorities to clarify reporting indicators; the most important element of tax control.
Basic accounting policies
Although accounting is regulated by common regulations for all enterprises, each of them may have different goals and objectives. In this regard, it is important to consider various approaches to the development of accounting policies by an enterprise.
The choice and justification of the organization’s accounting policy is influenced by the following factors: Anishchenko A.V. Accounting policy for accounting and taxation purposes for 2009. M.: Status-Quo 97, 2010. 340 p.
1. organizational and legal form of the enterprise (limited liability company, joint stock company, state enterprise);
2. industry affiliation or type of activity (industry, construction, trade, intermediary activity);
3. volumes of activity, organization structure, number;
4. procedure for taxation of the organization (exemption from various types of taxes, tax rates);
5. degree of freedom of action in a market economy, i.e. the ability to make independent decisions in matters of pricing and partner selection);
6. goals and objectives of the economic development of the enterprise for the long term, expected directions of investment, tactical approaches to solving long-term problems;
7. material base(provision of computer equipment and other office equipment, software and methodological support);
8. enterprise information support system (in all areas necessary for effective operation);
9. level of qualifications of accounting personnel, economic courage, initiative and enterprise of the company’s managers;
10. a system of material interest in the efficiency of the enterprise and financial responsibility for the range of responsibilities performed. Bryzgalin A.V., Bernik V.R., Golovkin A.N. The accounting policy of an enterprise for accounting purposes. - "Taxes and financial law", 2008. p.14
Only taking into account the totality of these factors will help to correctly approach the justification of accounting policies.
The adopted accounting policy of the enterprise must ensure the integrity of the accounting system. Therefore, it should cover all aspects of the accounting process: methodological, technical and organizational.
The methodological aspect of accounting provides methods for assessing property and liabilities, calculating depreciation for various types of property, methods for calculating profit, income, etc. The methodological aspect includes:
1. Criterion for classifying items as fixed assets
2. The procedure for calculating depreciation (amortization) of fixed assets
3. The procedure for calculating depreciation on intangible assets
4. Procedure for financing the repair of fixed assets
5. Method for assessing raw materials (inventory)
6. Formation of accounting groups of material assets
7. Method of recording transactions for the procurement and acquisition of material assets in accounts
8. Method of accounting for production output
9. Deadlines for repayment of deferred expenses
10. List of reserves for upcoming expenses and payments
11. Method for determining revenue from product sales
12. The procedure for creating reserves for doubtful debts
The need, procedure for creating and using funds. The technical aspect is how these methods are implemented in accounting registers and schemes of reflection on accounting accounts. The technical aspect includes:
Chart of Accounts
Accounting Form
Technologies for processing accounting information
Organization of in-production control
Organization of reporting
Inventory of property and liabilities
Organizational aspect- how these methods are implemented from the point of view of building an accounting service, its place in the management system, relationships and interaction with other elements and links of this system, characteristic of a market economy. The organizational aspect includes:
1. Document flow rules
2. List of persons authorized to sign primary accounting documents
3. Document flow schedule
The enterprise independently chooses the form of accounting, determining the list of accounting registers, the sequence and technique of entries in them, and their relationship. The selection is based on criteria such as the volume and composition of property owned by the enterprise, the structure and complexity of the production process, the scale and variety of activities, management organization, and personnel qualifications.
When choosing a form of accounting, it is advisable to focus on machine technologies for processing accounting information.
Machine-oriented forms of accounting should provide for: a high level of automation of accounting work; regulation of the processes for obtaining accounting and reporting information necessary to perform accounting functions in managing the economic activities of the enterprise; the ability to generate part of the reporting information not only for the corresponding reporting period, but also for any date in this period; recording all output information on computer media; output in an easy-to-use form in accordance with the established regulations of information for the implementation of accounting control over economic activities and the preparation of management decisions, the preparation of financial statements and the performance of other management work; output in an easy-to-use form upon request to employees of the accounting service for reference purposes, monitoring the reliability of accounting information, the correctness of its processing; efficiency and ease of use of accounting and reporting information.
The following can be proposed as general principles for constructing machine-oriented forms of accounting: accumulation and storage of information about the facts of economic activity in a database; systematization of information about the facts of economic activity should be carried out in the process of its chronological registration; combining synthetic and analytical accounting records in a single system.
One-time data entry provides that the data recorded in the primary document is entered into the accounting system once: their further processing is carried out by transferring and moving through various registers.
The focus on the use of machine information technologies does not exclude the possibility of organizing accounting using one of the traditional manual forms of bookkeeping. This means, for example, a single journal-order, journal-main, memorial-order form.
When generating reporting data, the accounting policy of the organization is fundamental.
The procedure for accounting for basic transactions depends on the choice of accounting method, which is fixed by the accounting policy of the enterprise. Order of the Ministry of Finance of the Russian Federation dated November 27, 2008 No. 155N “On amendments to regulatory legal acts on accounting” // EZh-Dossier, February 2009, No. 5.
International accounting standards
Let's consider what is meant by accounting policy in international practice. To do this, let us turn to the texts of the International Accounting Standards (IAS), developed by the International Standards Committee (IASC) and first published in Russian by the State Statistics Committee of the Russian Federation. Two assistants in accounting policy //V. Ekonomov, “Calculation”, N 12, December 2008 p.25
Standard IAS1-75 does not directly define the term “accounting policy”, but indirectly explains that a description of accounting policy is text that is included in financial statements to explain the basic accounting rules adopted in the organization, the need for which is due to the fact that different accounting policies may result in fundamentally different sets of financial statements based on the same conditions and events.
From this we can draw three important conclusions:
1. The accounting policy of the organization as such, i.e. without a corresponding financial report for a certain period of time, is not the subject of consideration of the IASI-75 standard. The standard regulates accounting policies only in the narrow sense of the word in relation to a specific financial statement. And only to the extent that it is needed to clarify
2. No time restrictions on the operation of certain components of the accounting policy in the organization are established. The period covered by the financial report is primary to the period covered by the statement of accounting policies.
3. The list of components of accounting policies is limited to those that are necessary for consumers to understand a particular financial statement. The preparer of the description of the accounting policy must identify those issues that may be incomprehensible to his consumers of the financial statement, and it is precisely these that are explained in the description of the accounting policy.
In Russia, the task of transitioning to international financial reporting standards, i.e. IAS standards were first set in 1992, when a state program for the transition to an international system of accounting and statistics was adopted in accordance with the requirements of the development of a market economy
However, in the first domestic accounting standard PBU 1/94 and the Law “On Accounting” No. 29-FZ of November 21, 1996. the attitude towards accounting policies differs from the already discussed standard IASI-75
In accordance with international standards, at the end of the financial year, a financial report is prepared and it explains what the accounting policy was in the past year in relation only to those report data that may be incomprehensible to the prepared user. It is very likely that the accounting policy for the coming year is a corporate secret.
The standard does not impose strict requirements for the description of accounting policies. This means that:
Its text can be fragmented and given in those places of the financial report in which it is required to maintain the integrity of the report from the point of view of the consumer of financial information. For example, a bank's financial report may consist of tabular forms containing financial information and divided into sections; explanations may follow those forms that require it.
The head of the organization signs the entire financial report, and not a separate part of it called “accounting policy”.
Essentially, the characteristics of accounting policies in the narrow sense of the word according to the international standard boil down to the following: Anishchenko A.V. Accounting policy for accounting and taxation purposes for 2009. M.: Status-Quo 97, 2010. 340 p.
1. Each organization should have only one accounting policy, different organizations accounting policies may be different
2. Accounting policies “relate to the principles, basis, agreements, rules, procedures approved by management at the stage of preparation of financial statements”
3. The fundamental accounting provisions applied in the financial report do not require explanation; however, if these fundamental provisions in the report do not apply, then this must be explained
Formal requirements for a document describing accounting policies in Russia are more stringent than in the IASI-75 standard. In accordance with the Law “On Accounting”, this document is approved by “an order or instruction of the person responsible for the organization and state of accounting.” Accordingly, this document cannot be a text explaining individual sections of the financial statements.
In addition, in Russian practice, accounting policies are not tied to the financial statements of the enterprise, but have independent significance.
Unlike international standards, in Russia:
A document called “Accounting Policy” is approved at the beginning of the year. The accounting policy of the organization, as such, is the subject of consideration of standard PBU 1/94. The standard regulates accounting policies in the broad sense of the word, in relation to accepted accounting at enterprises.
Time limits on the operation of accounting policy components in an organization are strictly established. The period covered by the financial statement is secondary to the period covered by the statement of accounting policies.
The list of accounting policy components is very broad, covering, if possible, all potential areas of the enterprise's activities. Favorable accounting policy for 2010 //L.I. Zelenkova, “Regulatory acts for accountants”, N 24, December 2009 p. 122
Conclusion: this section identified the basic principles and procedure for developing accounting policies.
6. The structure of accounting policies and approaches to its formation
When developing an accounting policy using PBU 11/2008, it must at least determine:
1) a list of persons who are related parties to the organization, or the principles for including legal entities and individuals in this list;
2) the specific composition and form of disclosure (including the procedure for presentation) of information subject to disclosure in accordance with PBU 11/2008;
3) the procedure for constructing analytical accounting, ensuring the receipt of information about related parties, which is subject to disclosure by the organization.
It makes sense to include several sections in the accounting policy and the information that should be placed in them.
So, the first describes organizational and technical issues:
organization of tax accounting (by accounting employees, by creating a separate specialized unit);
system of tax registers (rules for construction and description of register forms);
document flow system for filling out tax registers.
The second section specifies the choice of tax accounting methods in cases where the Tax Code of the Russian Federation provides the taxpayer with such a right (for example, determining the list of direct and indirect expenses). This is the main part of the accounting policy. Here it is advisable to differentiate tax accounting by individual types of taxes. A typical mistake when drawing up the second section is a description of “template” accounting rules or duplication of those rules that are directly provided for in the Tax Code of the Russian Federation and do not imply the right of the payer to choose one or another accounting method. Therefore, the main task is to avoid such mistakes and describe in as much detail as possible the method of accounting for income and expenses that the organization actually intends to use. Special attention should be given to those business transactions for which tax legislation is absent or does not contain a specific procedure. In this case, it is important to prescribe an algorithm for recognizing income and expenses, which can be divided into the following stages:
determining the date of recognition of income and expenses,
determining the amount of income and expenses,
forms primary documents, which are the basis for recording transactions,
accounting entries (if tax accounting is formed on the basis of accounting data).
For example, you can analyze the situation with documents for expenses such as rental payments, payments for communication services, legal, information, consulting, auditing and other services that come to the organization late. The fact is that for these services the Tax Code of the Russian Federation allows the taxpayer to determine which of the three dates will be considered the date of recognition of the expense. Thus, according to subparagraph 3 of paragraph 7 of Article 272 of the Tax Code of the Russian Federation, these costs can be taken into account either on the settlement date specified in the agreement, or on the last day of the period, or on the date of presentation to the taxpayer of documents serving as the basis for making calculations. Obviously, in order to neutralize the consequences of “late” documents, it is worth choosing and enshrining in the accounting policy the last option.
In the third section of the accounting policy, the organization can develop and approve tax register forms, examples of determining income and expenses for specific business transactions, and options for transferring losses to the future. For example, a loss incurred by an organization in 2009 will reduce the tax base for income tax over the next ten years - from 2010 to 2019. If in 2010 the company receives a profit in an amount exceeding the amount of the loss recorded based on the results of 2009, then it will be able to reduce this year’s profit by the entire amount of the loss. If the amount of profit at the end of 2010 is smaller, the company will include the loss of previous years in the expenses of the current period in parts (in an amount not exceeding, together with other expenses, the amount of income subject to taxation). However, even if the amount of profit received in 2010 makes it possible to take into account the entire amount of the loss, the organization has the right to provide in its tax accounting policy a restriction on the transfer of losses to the future.
When forming an accounting policy, the company must remember that this document is not drawn up “for show” and not only to fulfill the taxpayer’s obligations. Many accountants believe that an order on accounting policy is a formal document that needs to be quickly written, handed over to the tax authorities and forgotten about.
Meanwhile, by referring to this order (which must correctly describe accounting methods), you can win complex and sometimes almost hopeless court cases, or defend your point of view in disputes with tax authorities during audits, without even bringing disputes to lawsuits. In accordance with PBU 1/2008 “Accounting policy of the organization” (order of the Ministry of Finance of Russia dated October 6, 2008 No. 106n “On approval of accounting provisions”) under the accounting policy of the organization for the purpose of accounting it is understood as the set of accounting methods adopted by it - primary observation, cost measurement, current grouping and final generalization of the facts of economic activity.
According to Article 11 of the NKRF, accounting policy for tax purposes is a set of methods (methods) permitted by the Tax Code of the Russian Federation for determining income and (or) expenses, their recognition, assessment and distribution, as well as taking into account other indicators of financial and economic activity necessary for tax purposes. taxpayer.
the first document is devoted to the accounting policy of the enterprise in the field of accounting;
the second document is devoted to accounting policies in the field of taxation.
We believe that the assumption of consistency in the application of accounting policies, regulated by the accounting standard PBU 1/2008 “Accounting Policies of an Organization,” is also acceptable for accounting policies for tax purposes: the accounting policies chosen by the enterprise are applied consistently from one tax period to another, that is, they are developed “for centuries” and only if changes are necessary, it is adjusted by order dated before January 1 of the calendar year by which the changes are introduced.
the presence of two independent provisions is not accidental. Along with the fact that the calculation of a number of taxes is carried out on the basis of accounting, there are a fairly large number of requirements in tax regulations that cannot be met using only existing accounting methods.
7. Concept and principles of the organization’s tax policy
TAX POLICY OF ENTERPRISES
The behavior of an economic entity determines the main goal of entrepreneurial activity - increasing total income. Along with the development of production, improvement of organization and management, introduction of the latest technologies and equipment, enterprises strive to increase income by easing the tax burden and finding rational and legal ways to reduce tax payments. This problem is solved in the following areas:
1. Selection of activities that will ensure an acceptable tax burden on the enterprise
2. Determining the optimal methods and terms for paying taxes, fees and other tax payments from the point of view of an economic entity
3. Selecting directions for the distribution and use of profits, investing financial resources that will allow tax consequences favorable for the enterprise
Targeted tax policy largely depends on the knowledge of employees responsible for calculating and paying taxes of what taxes, when and where to pay, and on the ability of these employees to understand existing legal ways to reduce tax payments. Knowledge of tax law and current tax legislation allows for competent planning of tax payments and income.
T.A. Kozenkova in her work “Tax planning in an enterprise” considers tax planning in in a general sense as the taxpayer’s exercise of the right to use all possible means to reduce the tax burden imposed on him by the state, based on the principles of legality, efficiency and optimality. Compliance with these principles predetermines the nature and content of business activity, creates the prerequisites for the effective operation of the enterprise and reduces the possibility of liability for tax offenses.
The principle of legality stands out as fundamental. This means strict and strict compliance with the requirements of tax legislation when determining tax obligations enterprises, calculation and payment of taxes. In connection with the adoption and entry into force of part one of the Tax Code, liability for tax offenses is considered as an independent type of legal liability. A tax offense is an unlawful act (in violation of the legislation on taxes and fees) committed by a taxpayer, tax agent and other persons, for which liability is established by the Tax Code. For violation of the legislation on taxes and fees, officials may bear tax, administrative or criminal liability.
The principle of efficiency of tax planning is that the tax policy developed by the enterprise must be promptly adjusted taking into account all changes in current system taxation. At the same time, not only the main directions of tax policy can be adjusted, but also the types of business transactions, as well as the directions of all economic activities.
Features of the Russian political and economic system are its instability, unpredictability, inconsistency of laws and decisions adopted by government bodies, including in the field of taxation. Therefore, enterprises need to take into account such a probable factor as tax risks. Tax risks may be associated with changes in tax policy, the introduction of new types of taxes and fees, changes in tax rates and penalties, and the abolition of tax benefits.
Enterprises, based on the principle of efficiency of tax planning, must take into account possible not only external changes, but also internal ones, which can radically affect its tax policy.
The essence of the principle of optimal tax planning is that the use of mechanisms that reduce the size of tax liabilities should not lead to damage to the interests of the owners of the enterprise and strategic development goals. One of the main issues of tax planning is maintaining an optimal ratio between tax payments and that part of the profit that remains at the disposal of the enterprise for investment and ensuring financial stability.
Thus, tax planning is an important component of the tax policy of an enterprise.
8 . System of taxes and fees in the Russian Federation
Before the entry into force of chapters of part two of the Tax Code of the Russian Federation on taxes and fees provided for in Articles 12-15 of part one of the Tax Code of the Russian Federation, references in Article 12 to the provisions of the said Code are equivalent to references to acts of legislation of the Russian Federation on relevant taxes adopted before the date of entry into force by virtue of Federal Law dated July 29, 2004 N 95-FZ (Article 3 of Federal Law dated July 29, 2004 N 95-FZ).
Article 12. Types of taxes and fees in the Russian Federation. Powers of legislative (representative) bodies of state power of the constituent entities of the Russian Federation and representative bodies of municipalities to establish taxes and fees (as amended by Federal Law No. 95-FZ of July 29, 2004)
1. In the Russian Federation they are installed the following types taxes and fees:
federal, regional and local.
2. Federal taxes and fees are taxes and fees that are established by this Code and are obligatory for payment throughout the Russian Federation, unless otherwise provided by paragraph 7 of this article.
3. Regional taxes are taxes that are established by this Code and the laws of the constituent entities of the Russian Federation on taxes and are obligatory for payment in the territories of the relevant constituent entities of the Russian Federation, unless otherwise provided by paragraph 7 of this article.
Regional taxes are introduced and cease to operate in the territories of the constituent entities of the Russian Federation in accordance with this Code and the laws of the constituent entities of the Russian Federation on taxes.
When establishing regional taxes, the legislative (representative) bodies of state power of the constituent entities of the Russian Federation determine, in the manner and within the limits provided for by this Code, the following elements of taxation: tax rates, procedure and deadlines for paying taxes. Other elements of taxation for regional taxes and taxpayers are determined by this Code.
Legislative (representative) bodies of state power of the constituent entities of the Russian Federation, laws on taxes, in the manner and within the limits provided for by this Code, may establish tax benefits, grounds and procedure for their application.
4. Local taxes are taxes that are established by this Code and regulatory legal acts of representative bodies of municipalities on taxes and are obligatory for payment in the territories of the relevant municipalities, unless otherwise provided by this paragraph and paragraph 7 of this article.
Local taxes are introduced and cease to operate on the territories of municipal entities in accordance with this Code and regulatory legal acts of representative bodies of municipal entities on taxes.
On the application of paragraph three of paragraph 4 of Article 12, see paragraph 2 of Article 7 of Federal Law No. 95-FZ of July 29, 2004.
Land tax and property tax for individuals are established by this Code and regulatory legal acts of representative bodies of settlements (municipal districts), city districts on taxes and are obligatory for payment in the territories of the corresponding settlements (inter-settlement territories), city districts, unless otherwise provided by paragraph 7 of this article. Land tax and property tax for individuals are introduced and cease to operate in the territories of settlements (inter-settlement territories), urban districts in accordance with this Code and regulatory legal acts of representative bodies of settlements (municipal districts), urban districts on taxes.
Local taxes in the federal cities of Moscow and St. Petersburg are established by this Code and the laws of the specified constituent entities of the Russian Federation on taxes, and are obligatory for payment in the territories of these constituent entities of the Russian Federation, unless otherwise provided by paragraph 7 of this article. Local taxes are introduced and cease to operate in the territories of the federal cities of Moscow and St. Petersburg in accordance with this Code and the laws of the specified constituent entities of the Russian Federation.
When establishing local taxes, the representative bodies of municipalities (legislative (representative) bodies of state power of the federal cities of Moscow and St. Petersburg) determine in the manner and within the limits provided for by this Code the following elements of taxation: tax rates, procedure and deadlines for paying taxes. Other elements of taxation for local taxes and taxpayers are determined by this Code.
Representative bodies of municipal formations (legislative (representative) bodies of state power of federal cities of Moscow and St. Petersburg) legislation on taxes and fees in the manner and within the limits provided for by this Code may establish tax benefits, grounds and procedure for their application.
5. Federal, regional and local taxes and fees are abolished by this Code
6. Federal, regional or local taxes and fees not provided for by this Code cannot be established.
7. This Code establishes special tax regimes that may provide for federal taxes not specified in Article 13 of this Code, determines the procedure for establishing such taxes, as well as the procedure for enacting and applying these special tax regimes
Special tax regimes may provide for exemption from the obligation to pay certain federal, regional and local taxes and fees specified in Articles 13-15 of this Code.
Article 13. Federal taxes and fees
(as amended by Federal Law dated July 29, 2004 N 95-FZ)
Federal taxes and fees include:
1) value added tax;
2) excise taxes;
3) tax on personal income;
4) unified social tax;
5) corporate income tax;
6) mineral extraction tax;
7) has become invalid. - Federal Law of July 1, 2005 N 78-FZ;
8) water tax;
9) fees for the use of objects of wildlife and for the use of objects of aquatic biological resources;
10) state duty.
Article 14. Regional taxes (as amended by Federal Law No. 95-FZ of July 29, 2004)
Regional taxes include:
1) tax on property of organizations;
2) gambling tax;
3) transport tax.
Article 15. Local taxes (as amended by Federal Law No. 95-FZ of July 29, 2004)
Local taxes include:
1) land tax;
2) property tax for individuals.
Article 16. Information on tax (as amended by Federal Law No. 58-FZ of June 29, 2004)
Information and copies of laws and other regulatory legal acts on the establishment, amendment and termination of regional and local taxes are sent by government bodies of the constituent entities of the Russian Federation and local governments to the Ministry of Finance of the Russian Federation and the federal executive body authorized for control and supervision in the field of taxes and fees, as well as to the financial authorities of the relevant constituent entities of the Russian Federation and territorial tax authorities (as amended by Federal Laws dated July 29, 2004 N 95-FZ, dated July 27, 2006 N 137-FZ)
Article 17. General conditions for establishing taxes and fees
1. A tax is considered established only if the taxpayers and elements of taxation are determined, namely: (as amended by Federal Law No. 154-FZ of July 9, 1999) the object of taxation; tax base; tax period; tax rate; tax calculation procedure; procedure and deadlines for tax payment
2. If necessary, when establishing a tax, the legislative act on taxes and fees may also provide for tax benefits and the grounds for their use by the taxpayer (as amended by Federal Law No. 154-FZ of July 9, 1999)
3. When establishing fees, their payers and elements of taxation in relation to specific fees are determined. (as amended by Federal Law dated 07/09/1999 N 154-FZ) Article 18. Special tax regimes (as amended by Federal Law dated 07/29/2004 N 95-FZ)
1. Special tax regimes are established by this Code and are applied in cases and in the manner provided for by this Code and other acts of legislation on taxes and fees
Special tax regimes may provide for a special procedure for determining elements of taxation, as well as exemption from the obligation to pay certain taxes and fees provided for in Articles 13-15 of this Code.
2. Special tax regimes include:
1) taxation system for agricultural producers (unified agricultural tax);
2) simplified taxation system;
3) taxation system in the form of a single tax on imputed income for certain types of activities;
4) taxation system for the implementation of production sharing agreements.
10. Main directions of the organization’s tax policy
The essence of tax policy, which is one of the most important elements of the financial strategy of an economic entity, comes down to the choice of the most beneficial options for the tax burden for the enterprise, the interconnection of the latter with the economic, industry, assortment and other orientation of the enterprise. A company's tax policy may include:
choosing the correct legal address of the enterprise and its legal form;
proven tactics of working with the territorial tax inspectorate;
compliance with tax laws;
prompt response to changes in tax legislation;
searching for information about upcoming changes in tax legislation;
search for various forms of tax benefits;
tax base management;
selection of the most profitable forms of business contracts and settlements;
accounting for tax risks and financial losses;
search for areas of activity that are minimally taxed;
optimal placement of investments, assets and profits;
advanced training of financial managers who determine tax policy, etc.
11. The concept of the organization’s pricing policy
The process of forming a pricing policy at an enterprise depends on the approach to determining prices.
Price is traditionally understood as the monetary consideration paid to the seller for his product.
This approach to pricing takes into account only the calculation of the amount of payments for the goods, mainly on the basis of cost information. The pricing policy in this case is limited to price calculations taking into account costs. In the sales area, different payment terms and discounts apply. The discount system is very huge and includes several groups. It is very active and consists of the following elements:
· discount discounts - when paying in cash or paying before the deadline fixed in the contract; benefit to the manufacturer: increased liquidity of the enterprise, reduced costs due to accelerated turnover working capital;
· wholesale discounts - price reductions when purchasing a large quantity of goods; benefit to the manufacturer: cost savings associated with the process of selling, storing and transporting goods;
· trade (dealer) discounts - provided to firms or agents that are part of the manufacturer’s sales network;
seasonal discounts - for post-season and pre-season periods; benefit to the manufacturer: the manufacturer maintains stable production throughout the year;
other discounts - discounting the price of an old product when purchasing a new one, discounts for companies that participate in promotions.
In a modern market economy, pricing policy characterizes the focus of an enterprise on working with consumers. Based on this, the price can be defined as the sum of all the buyer’s expenses directly or indirectly related to the purchase of the product (sales price, costs of searching for a purchase, lending, repairs, installation, transportation costs). From this understanding of price, modern consumer-oriented pricing policies are formed.
Pricing policy is measures arising from the goals of the enterprise to search, select and implement the relationship between price and quality of goods and solve the buyer’s problems related to this.
Based on the modern definition of pricing policy, the latter can be represented as a system consisting of the following elements:
goals (long-term and short-term);
tools (strategic and operational-tactical);
organizational decisions.
Pricing policy should be focused on certain long-term and short term goals, achieved through various tools and organizational solutions.
The goals of pricing policy may be different. Among the most important of them are the following:
1) making a profit, its long-term and short-term maximization;
2) market stabilization;
3) limiting potential competition;
4) maintaining leadership in prices;
5) increase in sales volumes.
Not all goals may be compatible with each other (for example, paragraph 1 and paragraph 5).
In the long-term aspect, the goals, one way or another, are expressed in maximizing profits and strengthening the market position of the enterprise. In the short term, it could be any current problem related to meeting consumer needs, attracting new customers, expanding sales markets, and the financial position of the enterprise.
The goals of an organization's pricing policy determine the choice of its strategy and operational-tactical tools. The pricing strategy is long-term in nature and ensures the achievement of the organization's long-term goals. The starting point for developing a pricing strategy should be the so-called strategic triangle “company - client - competitor”. From the point of view of company development pricing strategy must take into account maintaining its financial health, the degree of sensitivity to financial risks associated with pricing, and ensuring the interests of the company’s owners. From the customers' perspective, problems of price levels and segmentation are developed in order to take into account customer preferences and solve these problems. In relation to the main competitors, decisions are made on the degree of aggressiveness of price pressure in connection with the tasks of achieving their own strategic position in the market.
Operational-tactical pricing tools are a large group of pricing policy tools that allow you to solve short-term problems and quickly respond to unexpected changes various factors pricing or aggressive pricing policies of competitors. Such instruments include short-term price changes, price differentiation for different consumers, price variations over time periods, price lines (boundaries, groups).
An important role in the pricing process is played by organizational decisions regarding the stages and forms of organizing the pricing process.
12. Forecasting market conditions and financial strategy of the enterprise. Basic aspects of marketing in an enterprise
Assessment of market conditions Market conditions are characterized by a certain ratio of supply and demand for goods of a given type, as well as the price ratio. The main goal of studying the commodity market is to establish the extent to which the activities of industry and trade influence the composition of the market and its development in the near future. The results of studying market conditions are intended to make operational decisions on managing the production and sale of goods. Collection of information is the most important stage studying market conditions. When researching, they are used various types information obtained from various sources. A distinction is made between general, commercial and special information. The general includes data on the characteristics of the market situation as a whole, in connection with the development of the industry or a given production. The source of information is data from state and industry statistics. As well as official accounting and reporting forms. Commercial information is data extracted from the business documentation of an enterprise on issues of product sales and received from partners in the form of information exchange. These include: applications and orders, trade organizations, and trade institutions (materials on the movement of goods in wholesale and retail organizations). Market surveys are also used. Special information represents data obtained as a result of special events on market research (surveys of the population, buyers, trade specialists, exhibitions and sales, market meetings), as well as materials from research works. To special information refers to information that cannot be obtained in any other way. The main goal of information support for market research is the creation of a system of indicators that make it possible to obtain quantitative and qualitative characteristics for specific types of product offerings (production of assorted goods). The updating of the product range is ensured by materials and raw materials, production facilities, and inventories of goods.
The financial strategy of any enterprise is determined by the strategic goals facing the enterprise, as well as the goals of financial management itself. As you know, the main goal of financial management is to ensure growth in the welfare of owners and maximize the market value of the company. Consequently, the company’s financial strategy is a master plan of action for the timely provision of the enterprise with financial resources (cash) and for their effective use in order to capitalize the company.
The development of a financial strategy for an enterprise consists of several stages. From the very beginning, it is necessary to determine for what period the financial strategy is being formed. Depending on the duration of the strategy, both the goals of financial activities and the degree of elaboration of financial plans depend. The long-term financial strategy describes the principles of generation and use of income, the need for financial resources and the sources of their formation. A short-term financial strategy is developed within the framework of a long-term financial strategy, details it and describes current management financial resources. Long-term and medium-term financial strategic plans for 3-5 years are formed in an enlarged form, and short-term financial plans for the year are worked out in great detail.
The next step in developing a financial strategy is to determine the goals of financial activities. Financial strategy is functional in relation to the company's corporate strategy, therefore, it must be included in the structure of the company's overall strategic goals. As you know, the main financial goal is to maximize market value while minimizing risk. Such a goal can be defined in both absolute and relative terms. The main goal is achieved if the enterprise has sufficient financial resources, optimal return on equity, and a balanced structure of equity and debt capital. The main financial goal is detailed into financial subgoals, for example:
Equity value
Return on equity
Asset structure
Financial risks
Each goal must be clearly formulated and expressed in specific indicators, for example:
Return on sales
Financial leverage (ratio of equity and debt capital)
Solvency level
Liquidity level
Developing a financial strategy involves developing not only goals, but also developing an action plan to achieve those goals. The company's management must know how the current situation relates to the company's strategic goals. It is necessary to regularly monitor the achievement of strategic goals. To control the implementation of the strategy, strategic goals are divided into specific strategic tasks that need to be solved within a certain period of time. Control over the achievement of strategic goals is carried out by solving tactical problems. Established financial goals are grouped into areas, forming the financial policy of the enterprise.
Having a financial strategy makes the company more manageable for management and transparent for owners.
Managing the economy and finances of an enterprise is impossible without well-functioning marketing services. You must always keep your finger on the pulse of the market. You must always know what ratios of price, quality, service and sales volume exist in the market, what its trends and volumes are, what competitors are doing, in what ways they are stronger or weaker. Before spending a lot of money on advertising, it would be nice to understand whether it will have an effect. If a company is going to expand into regions, then it is necessary to always know the situation in each of them.
But in addition to external information, it is also necessary to have information about the situation at the enterprise. How is money spent on the production and commercial cycle? Which department is the most profitable? Which type of product has the highest profitability and the shortest turnover period? How to build a performance-based management and payment system? These and many other issues are resolved by economic planning or financial departments. This information is the basis for cost and cost management. Based on it, the marketing service can develop a flexible system of wholesale discounts and pricing policies.
13. Supply and demand curves
financial policy organization accounting
In economics, a demand curve is a graph illustrating the relationship between the price of a particular good or service and the number of its consumers willing to buy it at that price. Is a graphical representation of the demand schedule.
The total demand curve for all consumers is the resulting demand curve for each consumer individually. Despite its name, a demand curve is not always represented as a curve; sometimes it can be a straight line graph, depending on the complexity of the scenario.
Demand curves are used to evaluate the behavior of agents in competitive markets and are very often considered in conjunction with supply curves to estimate the balanced or equilibrium price (the price at which all sellers are willing to sell and all buyers are willing to buy, also known as the market clearing price) and the equilibrium quantity ( the volume of goods or services that will be produced and sold without an excessive increase in supply or an excessive decrease in demand) in the market. On monopolistic market, the demand curve is represented only by the demand curve for the monopolist's products and does not require the creation of a resulting function.
SUPPLY CURVE - a graphical representation of the relationship between the supply of a product (usually plotted on the x-axis) and its price (on the y-axis). The standard for its designation on graphs is the letter S (from the word supply). Shows the quantity of goods offered at each price level; other factors affecting supply are held constant. Typically, the higher the price, the greater the supply.
Strictly speaking, such a dependence is valid in two cases: either in the conditions of a market where a given firm is not able to influence prices (if the firm has a monopoly, it itself can dictate them), or in conditions of centralized, directive pricing.
The long-term efficiency of a firm usually represents the dependence of supply on price under conditions in which the firm has sufficient time to fully adjust to changes in the price level.
14. Pure competition
Perfect, free or pure competition - economic model, an idealized state of the market when individual buyers and sellers cannot influence the price, but shape it through their input of supply and demand. In other words, this is a type of market structure where the market behavior of sellers and buyers is to adapt to the equilibrium state of market conditions.
Signs of perfect competition:
an infinite number of equal sellers and buyers
homogeneity and divisibility of products sold
no barriers to entry or exit from the market
high mobility of production factors
equal and full access of all participants to information (prices of goods)
In the case where at least one sign is missing, competition is called imperfect. In the case when these signs are artificially removed in order to occupy a monopoly position in the market, the situation is called unfair competition.
In some countries, one of the widely used types of unfair competition is the giving of explicit and implicit bribes to various government representatives in exchange for various types of preferences.
David Ricardo identified a natural tendency in the conditions of free competition for the rate of profit to decrease.
In a real economy, the exchange market most closely resembles a perfectly competitive market. In the course of observing the phenomena of economic crises, it was concluded that this form of competition usually fails, from which it can only be overcome thanks to external intervention.
15. Price adjustments: discounts, surcharges, offsets
Discount is the amount by which the selling price of a product sold to a buyer is reduced if he fulfills certain conditions.
Historically, discounts appeared and began to be used in the context of street trading of goods, when the seller, as a result of bargaining, provided a discount to the buyer who purchased more goods.
Currently, the practice of providing discounts is used by large and medium-sized companies, small businesses and individual entrepreneurs
BONUS - 1) additional payments to employees (wage supplement) for particularly difficult working conditions or high quality of work; 2) markup, additional payment for a product, an addition to its nominal price, due to special qualities, production to order with special requirements. The following types of premiums are distinguished: premium for a block of shares - a premium to the share price received by the seller of the block for increasing the managerial powers of the buyer of the block; surcharge to the state tax - an additional tax established in a certain proportion to the state tax, received in local budget; customs duty surcharge - an increase in customs duties for economic and political purposes; wage supplement - additional cash payments for above-plan, overtime, especially important, piece work; price premium - an increase in the list price for services provided to the buyer.
SETTING OFF - 1) repayment of mutual obligations, payments of two or more legal entities and individuals within equal amounts, amounts of mutual debt. See also SETTING OFF; 2) monetary compensation, indirect payment for participation in the implementation of programs or the provision of services; is realized by deducting the payment for participation from the price of the goods purchased by the participant or by other types of offset.
16. State price regulation policy
State regulation of the market and prices is a set of measures taken by the government in the process of participation in the system of commodity-money relations and aimed at regulating and controlling prices in various spheres of the national economy. Thus, government price regulation can be represented as an attempt by the state, through legislative, administrative and budgetary and financial measures, to influence the market and prices in such a way as to promote the stable development of the economy as a whole.
The need for government intervention in pricing processes is due to the fact that a freely functioning market does not necessarily guarantee high efficiency economic activity. In a number of cases, market imperfection and equilibrium instability require a certain amount of government intervention. The role of the state is mainly to ensure the development of the economy in the direction of not only increasing production and improving product quality, but also achieving full employment, fair distribution of income and stabilization of price levels.
Using the regulatory function of price to solve economic problems, the state takes part in redistribution net income between industries and sectors of the national economy, individual regions, enterprises and population groups. The state must also participate in the pricing process (directly or indirectly) to protect the interests of national commodity producers who are not yet able to equally resist the expansion of foreign manufacturers of similar products into the market.
State regulation of prices can be considered as one of the areas of macroeconomic regulation of the economy, the special significance of which is manifested in the following areas:
Maintaining a competitive environment in the market and preventing monopolization;
Fighting inflation and ensuring price stability;
Carrying out a socially oriented price policy;
Ensuring an optimal ratio of foreign trade and domestic prices.
Thus, at the macroeconomic level, the initial principles and concepts of price policy, as well as their legislative and regulatory support, are developed.
Along with the macroeconomic impact of the state on prices, there is also their regulation at the microeconomic level. Microeconomic measures of government influence on prices include: control over the level of prices for products and services of natural monopolies, enterprises occupying a monopoly and dominant position in the market; setting prices for goods and services of particular social significance; establishment of excise taxes and subsidies for individual producers; establishment of trade markups for certain types of products; regulation of prices and customs tariffs in foreign economic activity.
State regulation of prices is carried out using a combination of direct and indirect forms and methods.
17. Variable and fixed costs
Production costs are costs associated with the production and circulation of manufactured goods. In accounting and statistical reporting they are reflected as cost. Include: material costs, labor costs, interest on loans, costs associated with promoting a product to the market and selling it.
Economic costs are usually divided into total, average, marginal (they are also called marginal costs) or trailing costs, as well as constant and variable.
Variable costs are types of expenses, the value of which changes in proportion to changes in production volumes. They are contrasted with fixed costs, which add up to total costs. The main sign by which you can determine whether costs are variable is their disappearance when production stops
Fixed costs arise when the volume of use of one (or both) factors introduced into the transformation process cannot change. Thus, variable costs arise when a firm deals with factors introduced into the transformation process, the scope of which is not limited in any way.
Since the value of fixed costs necessarily ceases to depend on the volume of output, the definition is often distorted by talking about fixed costs as independent of the volume of output, or even simply indicating a certain list of cost calculation items, which supposedly describes fixed costs under any circumstances. For example, salaries of office workers, depreciation, advertising, etc. Accordingly, costs are considered variables, the value of which directly depends on changes in output (raw materials, materials, wages of production workers, etc.). Such an “introduction” of accounting provisions into economics as a science is not only illegal, but downright harmful.
18. Profitability threshold, concept and graphical method for its determination
The profitability threshold is the sales volume at which a company can cover all its expenses without making a profit. The term break-even point is often used. In turn, how profit grows with changes in revenue is shown by Operating Leverage (operating leverage).
See also
Financial ratios for assessing the financial condition of an enterprise
Express analysis of the financial condition of the enterprise
To calculate the profitability threshold, it is customary to divide costs into two components:
Variable costs - increase in proportion to the increase in production volume (sales of goods).
Fixed costs do not depend on the number of products produced (goods sold) and whether the volume of operations increases or decreases.
The value of the profitability threshold is of great interest to the lender, since he is interested in the question of the sustainability of the company and its ability to pay interest on the loan and the principal debt. The stability of an enterprise determines the margin of financial strength - the degree to which sales volumes exceed the profitability threshold.
Let us introduce the notation: B - revenue.
Рн - sales volume in physical terms.
Zper - variable costs.
Postage - fixed costs.
P - Price, revenue per unit of production,
Zsper - average variable costs (per unit of production).
PRd - profitability threshold in monetary terms.
PRn - profitability threshold in physical terms.
Formula for calculating the profitability threshold in monetary terms:
PRd = V*Zpost/(V - Zper)
Formula for calculating the profitability threshold in physical terms (in units of products or goods):
PRn = Zpost / (C - ZSper)
In the figure below, fixed costs are 300, variable costs per unit of production are 10, price is 25, profitability threshold (break-even point) PRn = 20 pieces.
When the profitability threshold is reached, the income line crosses and goes above the line of total (gross) costs, the profit line crosses 0 - moves from the loss zone to the profit zone.
Profitability is a relative measure of profitability and is usually expressed as a percentage or profit per unit of investment. In this regard, it is interesting to see what the profitability and cost lines look like when converted to a unit of output.
As in the previous figure, fixed costs are 300, variable costs per unit of production are 10, price is 25, profitability threshold (break-even point) PRn = 20 pieces.
When recalculated per unit of production, we see that some constant quantities have turned into variables and vice versa. Some straight lines turned into curves.
The graph shows that:
As volume increases, a smaller and smaller share of fixed costs per unit of production occurs. Therefore, the fixed cost line goes down.
The proportion of variable costs is constant for each unit of production.
The total cost per unit of production (cost) decreases.
With a production volume of 20 pcs. the cost line crosses the price line (cost equals price) and goes below it.
Accordingly, the profit line passes through 0, the profit becomes positive.
The fixed cost line intersects the marginal profit (marginal income) line, i.e. marginal income equals fixed costs. Next, the marginal profit line goes above the fixed cost line - a profit is formed.
Excel spreadsheets are useful for quickly calculating options and assessing the impact of different cost-price ratios.
19. Current assets of the organization: concept and types
A key role in the implementation of the short-term financial policy of an enterprise is played by the problems of sufficiency of current assets, sources of their financing and efficiency of use. Enterprise working capital management is a daily activity that ensures the firm has sufficient resources to carry out its operations and avoid costly downtime. Without effective management It is impossible to implement long-term financial strategies of the enterprise with current assets.
Current assets - characterize the totality of property assets of an enterprise that serve the current production and commercial (operating) activities and are completely consumed during one production and commercial cycle.
Working capital can be divided according to the following main characteristics:
By type of current assets can be divided:
Current production assets. These include raw materials, basic materials and semi-finished products, auxiliary materials, fuel, containers, spare parts, etc., as well as work in progress and deferred expenses;
Current assets in circulation. These are enterprise funds invested in finished product inventories, goods shipped but not paid for (accounts receivable) as well as cash in cash and in accounts (see Fig. 1)
According to the degree of liquidity there are:
Absolutely liquid assets. These include current assets that do not require sale and represent ready-made products payment: cash;
Highly liquid assets. They characterize a group of assets that can be quickly converted into cash (usually within a month), without significant losses in their market value: short-term financial investments, short-term receivables;
Average liquid assets. This type includes current assets that can be converted into cash without significant losses of their current market value within a period of one to six months: accounts receivable (except short-term), finished goods inventories;
Low-liquid assets. These include the current assets of the enterprise, which can be converted into cash without loss of their current market value only after a significant period of time (from six months or more): stocks of raw materials and semi-finished products, work in progress;
Illiquid assets. Assets that cannot be converted into cash on their own. They can only be realized as part of the property complex: bad receivables, deferred expenses.
By the nature of financial sources of formation:
Gross current assets. Characterize the total volume of current assets formed from equity and borrowed capital;
Net current assets. These are current assets that are formed from own and long-term borrowed capital. Calculated as the difference between current assets and short-term liabilities:
NOA = OA – KFO;
NOA – net current assets;
OA – current assets;
KFO – short-term current financial liabilities.
Own current assets. Characterize that part of current assets that are formed from equity capital. To calculate, it is necessary to subtract long-term assets from the amount of net current assets. borrowed capital aimed at the formation of current assets:
SOA = NOA – DZK;
SOA= OA – DZK – KFO;
SOA – the amount of the enterprise’s own current assets;
Secondary loan capital – long-term borrowed capital.
If an enterprise does not use long-term borrowed capital to finance working capital, then the amounts of own and net current assets are the same.
By the nature of participation in the operational process:
Current assets serving the production cycle: raw materials, supplies, work in progress, finished products;
Current assets serving the financial cycle: cash, accounts receivable.
By operating period of current assets
Permanent current assets. It represents a constant part of current assets, which does not depend on seasonal and other fluctuations in operating activities, i.e. is the irreducible minimum of current assets to maintain the operating cycle;
variable current assets. This is a varying part of current assets, which is associated with an increase in production and sales of products, the need to form reserves for seasonal storage, long-term delivery, and intended use.
20. Indicators of the efficiency of use of the organization’s current assets
The indicators of the efficiency of using working capital include the following.
1. The duration of one revolution (Before) is determined by the formula:
where Co is the balance of working capital for the period;
Tper - number of days in the period;
Vreal - amount products sold.
2. The turnover ratio shows the number of revolutions made during a certain period. It is determined by the formula:
3. The OBS load factor characterizes the amount of working capital per 1 ruble. products sold:
4. Profitability of working capital is calculated as the ratio of the enterprise's profit to the average annual cost of working capital.
As a result of acceleration of turnover (intensity of use of fixed assets), a certain amount of fixed assets is released
Absolute release reflects a direct reduction in the need for working capital. Absolute release occurs when
Co.fact< Со.план, Vреал = const ,
where Co.fact is the actual balances of the OS;
Co.plan - planned balances of the operating system;
Vreal - sales volume.
Absolute release is determined by the formula:
AB = Co.fact - Co.plan.
The relative release of OBS occurs when turnover accelerates with an increase in production volume. Unlike absolute release, the funds released cannot be withdrawn from circulation without maintaining continuity of production.
Relative release reflects both the change in the amount of working capital and the change in the volume of products sold. To determine it, you need to calculate the need for working capital for the reporting year, based on the actual turnover of product sales for this period and turnover in days for the previous year. The difference will give the amount of funds released.
When analyzing the work of an industrial enterprise, various indicators are used beneficial use material resources:
Indicator (coefficient) of the output of finished products from a unit of raw materials;
Indicator of raw material consumption per unit of finished product;
Material utilization coefficient (the ratio of the net weight or mass of the product to the standard or actual consumption of structural material);
The coefficient of use of area or volume of materials;
Level of waste (losses), etc.
Ways to improve the efficiency of using working capital: optimization of resource inventories and work in progress; reduction in duration production cycle; improving the organization of logistics; acceleration of sales of commercial products, etc.
Common sources of saving material resources are: reducing the specific consumption of materials; reducing the weight of products; reducing losses and waste of material resources; use of waste and by-products; waste disposal; replacement of natural raw materials and materials with artificial ones, etc.
21. Factoring
Factoring (English factoring from the English factor - intermediary, sales agent) is a range of services for manufacturers and suppliers conducting trading activities on deferred payment terms.
Three parties are usually involved in a factoring operation: the factor (factoring company or bank) - the buyer of the claim, the supplier of the goods (creditor) and the buyer of the goods (debtor). The main activity of a factoring company is lending to suppliers by purchasing short-term receivables, usually not exceeding 180 days. An agreement is concluded between the factoring company and the supplier of goods that, as demands arise for payment for deliveries of products, invoices or other payment documents are presented to it. The factoring company discounts these documents by paying the client 60-90% of the cost of the requirements. After the buyer pays for the products, the factoring company pays the remaining amount to the supplier, deducting a percentage from him for the loan provided and commission payments for the services provided.
There are a large number of types of factoring services, differing from each other primarily in the degree of risk that the factoring company assumes.
Factoring with recourse (eng. recourse factoring) is a type of factoring in which the factor acquires from the client the right to all amounts due from the debtor. However, if it is impossible to recover the amounts from the debtor in full, the client who assigned the debt is obliged to compensate the factor for the missing funds.
Non-recourse factoring is a type of factoring in which the factor acquires from the client the right to all amounts due from the debtor. If it is impossible to recover the amounts in full from the debtor, the factoring company will suffer losses (although within the framework of the financing paid to the client).
Factoring can be open (with notification of the debtor about the assignment) and closed (without notification). It can also be real (a monetary claim exists at the time of signing the contract) and consensual (a monetary claim will arise in the future).
When one Factor participates in a transaction, factoring is called direct, and when there are two Factors, it is called reciprocal.
When classifying types of factoring, it is worth paying attention to invoice discounting, although it has a number of significant differences, despite the fact that it contains features of recourse closed factoring.
22. Management of the organization's monetary assets
Management of monetary assets or the balance of funds constantly at the disposal of the enterprise is an integral part of the functions general management current assets. The size of the balance of monetary assets that an enterprise operates in the process of economic activity determines the level of its absolute solvency (the readiness of the enterprise to immediately pay off all its urgent financial obligations), affects the duration of the operating cycle (and, consequently, the amount of financial resources invested in company assets), and also characterizes, to a certain extent, its investment opportunities (investment potential for the enterprise to make short-term financial investments).
The formation of cash holdings by an enterprise is caused by a number of reasons, which form the basis for the corresponding classification of its cash balances.
The operating (or transaction) balance of monetary assets is formed in order to ensure current payments related to the production and commercial (operational) activities of the enterprise: for the purchase of raw materials, materials and semi-finished products; wages; paying taxes; payment for services of third parties, etc. This type of cash balance is the main one in the total monetary assets of the enterprise.
The insurance (or reserve) balance of monetary assets is formed to insure the risk of untimely receipt of funds from operating activities due to worsening conditions in the market for finished products, a slowdown in payment turnover, and for other reasons. The need to form this type of balance is due to the requirements of maintaining the constant solvency of the enterprise for urgent financial obligations. The size of this type of balance of monetary assets is significantly influenced by the enterprise’s availability of short-term financial loans.
The investment (or speculative) balance of monetary assets is formed with the aim of making effective short-term financial investments under favorable conditions in certain segments of the money market. This type of balance can be purposefully formed only if the need for the formation of cash holdings of other types is fully satisfied. At the present stage of the country's economic development, the overwhelming number of enterprises do not have the opportunity to form this type of monetary assets.
The compensating balance of monetary assets is formed mainly at the request of the bank that provides settlement services to the enterprise and provides it with other types of financial services. It represents the minimum amount of monetary assets that the company, in accordance with the terms of the banking service agreement, must permanently keep in its current account. The formation of such a balance of monetary assets is one of the conditions for issuing a blank (unsecured) loan to an enterprise and providing it with wide range banking services.
The considered types of cash asset balances characterize only the economic motives for an enterprise to form its cash holdings, however, their clear distinction in practical conditions is quite problematic. Thus, the insurance balance of monetary assets during the period of its lack of demand can be used for investment purposes or considered in parallel as a compensating balance of the enterprise. Similarly, the investment balance of monetary assets during the period of no demand represents the insurance or compensation balance of these assets. However, when forming the size of the total balance of monetary assets, each of the listed motives must be taken into account.
The main goal of financial management in the process of managing monetary assets is to ensure the constant solvency of the enterprise. In this, the function of monetary assets as a means of payment is realized, ensuring the implementation of the goals of forming their operating, insurance and compensation balances. The priority of this goal is determined by the fact that neither large size current assets and equity capital, nor a high level of profitability of economic activities can insure an enterprise from initiating a bankruptcy claim against it if, due to a lack of monetary assets, it cannot pay off its urgent financial obligations within the stipulated time frame. Therefore, in the practice of financial management, the management of monetary assets is often identified with solvency management (or liquidity management).
Along with this main goal, an important task of financial management in the process of managing monetary assets is to ensure the effective use of temporarily free funds, as well as the formed investment balance.
From the standpoint of forms of accumulation of monetary holdings and management of the solvency of an enterprise, its monetary assets are divided into the following elements:
Monetary assets in national currency;
Monetary assets in foreign currency;
Reserve (from the position of ensuring solvency) monetary assets in the form of highly liquid short-term financial investments.
When characterizing the composition of an enterprise's monetary assets from the perspective of financial management, it should be noted that their interpretation here is broader than in accounting, where short-term financial investments are considered as an independent object of accounting and reporting as part of current assets. Financial management considers short-term financial investments as a form of reserve placement of the free balance of monetary assets, which at any time can be called upon to ensure the urgent financial obligations of the enterprise.
Taking into account the main goal of financial management in the process of managing monetary assets, an appropriate policy for this management is formed. In the process of forming this policy, it should be taken into account that the requirements for ensuring the constant solvency of the enterprise determine the need to create a large amount of monetary assets, i.e. pursue the goal of maximizing their average balance within the financial capabilities of the enterprise. On the other hand, it should be taken into account that an enterprise’s monetary assets in national currency, when stored, are largely susceptible to loss of real value from inflation; In addition, monetary assets in national and foreign currencies, when stored, lose their value over time, which determines the need to minimize their average balance. These conflicting requirements must be taken into account when developing a monetary asset management policy, which in connection with this acquires an optimization character.
The cash asset management policy is part of the overall policy for managing current assets of an enterprise, which consists of optimizing the total size of their balance in order to ensure constant solvency and efficient use during storage.
The requirement for the compensating balance of monetary assets is planned in the amount determined by the banking service agreement. If the agreement with the bank providing settlement services to the enterprise does not contain such a requirement, this type of balance of monetary assets is not planned for the enterprise. The need for the investment (speculative) balance of monetary assets is planned based on the financial capabilities of the enterprise only after the need for other types of balances of monetary assets is fully satisfied. Since this part of monetary assets does not lose its value during storage (when forming an effective portfolio of short-term financial investments), their amount is not limited by an upper limit. The criterion for the formation of this part of monetary assets is the need to ensure a higher rate of return on short-term investments in comparison with the rate of return on operating assets.
Considering that the balances of monetary assets of the last three types are to a certain extent interchangeable, the total need for them, given the limited financial capabilities of the enterprise, can be reduced accordingly.
In the practice of foreign financial management, more complex models for determining the average balance of monetary assets are also used.
The most widely used for these purposes is the Baumol Model, who was the first to transform the previously discussed EOQ Model for cash balance planning. The starting points of the Baumol Model are the constancy of the flow of cash expenditures, the storage of all reserves of monetary assets in the form of short-term financial investments and the change in the balance of monetary assets from their maximum to a minimum equal to zero.
Based on the presented graph, it can be seen that if replenishment of cash balances through the sale of part of short-term financial investments or short-term bank loans were carried out twice as often, then the size of the maximum and average cash balances at the enterprise would be half as much. However, each operation to sell short-term assets or obtain a loan is associated with certain expenses for the enterprise, the size of which increases with increasing frequency (or shortening of the period) of replenishment of funds. Let's denote this type of expense with the index "Ro" (the cost of servicing one operation to replenish cash expenses).
The Miller-Orr model is an even more complex algorithm for determining the optimal size of cash asset balances. The initial provisions of this model provide for the presence of a certain amount of safety stock and a certain unevenness in the receipt and expenditure of funds, and, accordingly, the balance of monetary assets. The minimum limit for the formation of the balance of monetary assets is taken at the level of the insurance balance, and the maximum - at the level of three times the size of the insurance balance.
Despite the clear mathematical apparatus for calculating the optimal amounts of cash asset balances, both of the above models (the Baumol Model and the Miller-Orr Model) are still difficult to use in the domestic practice of financial management for the following reasons:
The chronic shortage of current assets does not allow enterprises to form a cash balance in the required amounts, taking into account their reserves;
The slowdown in payment turnover causes significant (sometimes unpredictable) fluctuations in the amount of cash receipts, which is accordingly reflected in the amount of the balance of monetary assets;
The limited list of circulating short-term stock instruments and their low liquidity make it difficult to use indicators related to short-term financial investments in calculations.
3. Differentiation of the average balance of monetary assets in the context of national and foreign currencies. Such differentiation is carried out only at those enterprises that conduct foreign economic activity. The purpose of such differentiation is to separate out the currency part of them from the overall optimized need for monetary assets in order to ensure the formation of the foreign exchange funds necessary for the enterprise. The basis for such differentiation is the planned volume of expenditure of funds in the context of domestic and foreign economic transactions in the process of carrying out operating activities. The calculations use formulas for determining the need for operating and insurance balances of monetary assets with their differentiation by type of currency.
4. Selection of effective forms of regulation of the average balance of monetary assets. Such regulation is carried out in order to ensure the constant solvency of the enterprise, as well as to reduce the estimated maximum and average need for balances of monetary assets.
In foreign practice of financial management, float is one of the effective tools for managing the balance of monetary assets of companies and firms;
Reducing cash payments. Cash payments increase the balance of the enterprise's monetary assets and reduce the period of use of its own monetary assets for the period of passage of suppliers' payment documents;
Acceleration of collection of receivables, primarily through the use of modern forms its refinancing (bills discounting, factoring, forfeiting and others);
Opening a “credit line” in a bank, ensuring the prompt receipt of short-term loan funds if there is an urgent need to replenish the balance of monetary assets;
Accelerating the collection of funds in order to replenish them in the current account to ensure timely payments to the enterprise in non-cash form;
Use in individual periods the practice of partial prepayment for supplied products, if this does not lead to a decrease in the volume of its sales. This practice is usually used when selling products that have high demand in the market.
5. Ensuring the profitable use of the temporarily free balance of monetary assets. At this stage of developing a policy for managing monetary assets, a system of measures is being developed to minimize the level of losses of alternative income during their storage and anti-inflation protection. Some of the main such events include:
Agreeing with the bank providing settlement services to the enterprise on the conditions for the current storage of the balance of monetary assets with the payment of deposit interest on the average amount of this balance (for example, by opening a checking account with the bank);
The use of short-term monetary investment instruments (primarily deposits in banks) for temporary storage of insurance and investment balances of monetary assets;
The use of high-yield stock instruments for investing the reserve and free balance of monetary assets (government short-term bonds; short-term bank certificates of deposit, etc.), but subject to sufficient liquidity of these instruments in the financial market.
6. Construction of effective systems for monitoring the financial assets of the enterprise. The object of such control is the total level of the balance of monetary assets ensuring the current solvency of the enterprise, as well as the level of efficiency of the formed portfolio of short-term financial investments of the enterprise
Monetary assets play an active role in the process of ensuring solvency for two types* of financial obligations of an enterprise - urgent (with a maturity of up to one month) and short-term (with a maturity of up to three months); current liabilities with a maturity of up to one year are secured primarily by other types of current assets. Control over the total level of the balance of monetary assets while ensuring the solvency of the enterprise should be based on the following criteria:
The control system for monetary assets must be integrated into the overall financial controlling system of the enterprise.
23. Financial strategy and tactics, goals and main directions
Financial policy, depending on the length of the period for which it is designed and the nature of the tasks being solved, includes financial strategy and financial tactics. Moreover, they are closely interconnected. Strategy determines the essence and direction of tactics. In turn, tactical capabilities limit the choice of strategy, because there is no point in defining strategic goals and objectives for which there are not enough appropriate tactical means. At the same time, it should be emphasized that financial policy, which is based on the unification and interconnection of strategy and tactics, their unity and subordination, can be successful. Financial policy that does not have strategic guidelines consists only of solving tactical problems, is limited in nature and, as a rule, is ineffective.
Financial strategy is a policy designed for the long term and solving global problems of socio-economic development. The direction of the financial strategy is determined by the specific objectives of the development of society at a certain historical stage development. In conditions of economic crisis, the main task is to provide financial support for macroeconomic stabilization; in conditions of economic development, it is to achieve optimal rates of GDP growth. At the same time, under any conditions, the basis of the financial strategy is the reliable provision of the needs of the economy with financial resources and the creation of sufficient incentives for the effective activities of business entities. Financial strategy is focused on a specific model of financial relations in society.
Financial tactics are current policies aimed at solving specific problems of the corresponding period arising from the developed financial strategy. It is carried out through the reorientation of financial resources and changes in the organization of financial activities. Financial tactics are more mobile, since they consist of timely response to economic problems and imbalances, its main task is to achieve strategic development goals.
Financial policy is implemented in two directions: regulation of financial relations in society and implementation of current financial activities. Regulation of financial relations characterizes the strategy of financial policy, and current financial activities characterize its tactics. The basic element is the regulation of financial relations, which can be carried out by the state in legislative and administrative forms.
Legislative regulation consists of the adoption of relevant legislative acts that establish the subjects of financial relations, their rights and obligations, the procedure and methods for carrying out financial activities, etc. Administrative regulation provides for the provision of rights to regulate financial relations to bodies public administration. The main form of developing financial policy is the legislative regulation of financial relations, since it puts financial activities on a stable legal basis, which makes financial policy sustainable.
24. financial planning in an enterprise, principles, content and objectives
To manage means to foresee, i.e. predict, plan. Therefore, the most important element of entrepreneurial economic activity and enterprise management is planning, including financial planning.
Financial planning is planning of all income and areas of spending of an enterprise's funds to ensure its development. Financial planning is carried out through the preparation of financial plans of different contents and purposes, depending on the objectives and objects of planning.
Financial planning is important element corporate planning process. Every manager, regardless of his functional interests, must be familiar with the mechanics and meaning of the implementation and control of financial plans, at least as far as his activities are concerned.
Main tasks financial planning:
ensuring the normal reproduction process with the necessary sources of financing. At the same time, targeted sources of financing, their formation and use are of great importance;
respecting the interests of shareholders and other investors. A business plan containing such a justification for an investment project is the main document for investors that stimulates capital investment;
guarantee of fulfillment of the enterprise’s obligations to the budget and extra-budgetary funds, banks and other creditors. The optimal capital structure for a given enterprise brings maximum profit and maximizes payments to the budget under given parameters;
identification of reserves and mobilization of resources in order to effectively use profits and other income, including non-operating ones;
ruble control over the financial condition, solvency and creditworthiness of the enterprise.
The purpose of financial planning is to link income with necessary expenses. If income exceeds expenses, the excess amount is sent to the reserve fund. When expenses exceed income, the amount of the lack of financial resources is replenished by issuing securities, obtaining loans, receiving charitable contributions, etc.
The management of any enterprise, regardless of its type and size, must know what tasks in the field of economic activity it can plan for the next period. Groups of people interested in the activities of the enterprise impose certain minimum requirements for the results of its work. In addition, when planning certain types of activities, it is necessary to know what economic resources are required to complete the tasks. This applies, for example, to planning in the field of raising capital (purchasing loans, increasing share capital, etc.) and determining the volume of investments.
As the budgeted plans are implemented, it is necessary to record the actual results of the enterprise's activities. By comparing actual indicators with planned ones, it is possible to carry out so-called budgetary control. In this sense, the main attention is paid to indicators that deviate from the planned ones, and the reasons for these deviations are analyzed. Thus, information about all aspects of the enterprise’s activities is replenished. Budget control allows, for example, to find out that in some areas of the enterprise's activities the plans are being implemented unsatisfactorily. But one can, of course, imagine a situation where it turns out that the budget itself was drawn up on the basis of unrealistic starting points. In both cases, management is interested in obtaining information about this in order to take the necessary actions, i.e. change the way plans are carried out or revise the provisions on which the budget is based. When developing a financial plan for the next period, it is necessary to make decisions in advance, before the start of activities during this period. In this case, there is a greater likelihood that the planners will have enough time to put forward and analyze alternative proposals than in a situation where a decision is made at the very last moment.
25. Features of the enterprise’s pricing policy
Pricing policy is the general principles that a company adheres to in setting prices for its goods or services. This is one of the most important and flexible marketing tools, determining the sales volume of a particular product and forming an image of it in the eyes of consumers.
The main objective of the enterprise's pricing policy in the selected market is to ensure sustainable planned profit and sustainable competitiveness of products. However, this task may vary depending on the goals that the enterprise faces at a particular point in time and in a particular market.
When developing a pricing policy at an enterprise, the following points are taken into account:
what place does price occupy among the means of competition in each market where the enterprise operates;
what price calculation method should be chosen; can the enterprise withstand the role of a “price leader”, i.e. can it withstand a “price war”;
what should be the pricing policy for new products;
how the price should change depending on the life cycle of the product;
whether there should be a single reference price for all segments traded, or whether different reference prices are possible;
Are there any organizations that can analyze the cost-benefit ratio of your enterprise and compare the result with the same indicator of competitors.
The seller's pricing policy depends on the type of market in which the company operates.
The main criterion for classifying types of markets is the nature and degree of freedom of competition and pricing. Depending on the degree of freedom of competition and price formation, four main types of markets are distinguished (table).
Development of a pricing policy includes the following stages:
1) development of pricing goals;
2) analysis of pricing factors;
3) choice of pricing method;
4) deciding on the price level.
26.Financial resources
Financial resources are funds intended to finance the development of an enterprise in the coming period.
Sources of financial resources are all cash income and receipts that the enterprise has. They are used to implement expenses and deductions necessary for production and social development:
investments,
advance in current costs (cost price),
expenses and contributions to special funds and budgets.
These are the main areas of use of financial resources.
Introduction
financial policy tactical
Financial policy is the most important basic element of the functioning of an enterprise.
The financial policy of an enterprise is the most important characteristic of its economic activity. It is an integral part common system enterprise management and can be defined as a system of rational and effective management of the use of an organization's finances.
Enterprise finance, being part of the general system of financial relations, reflects the process of formation, distribution and use of income at enterprises in various sectors of the national economy and is closely related to entrepreneurship, since an enterprise is a form of entrepreneurial activity.
In a market economy and fierce competition, the importance and relevance in the development and use of long-term financial policies increases. It is obvious that the well-being of an enterprise fundamentally depends on the proper organization of financial policy.
Financial policy as a financial management concept covers all activities of a modern enterprise, representing the basis for the functioning of an organization in a market economy, reflects all aspects of the enterprise’s activities - its profitability and profitability, solvency and liquidity, as well as financial stability.
Enterprises pursue their own financial policies, carried out within the framework of the current legal and regulatory framework. These include federal laws of the Russian Federation, decrees of the President of the Russian Federation, decrees of the Government of the Russian Federation, regulatory and instructional documents of the Central Bank, the Federal Tax Service, ministries and departments, licenses, statutory documents, norms, instructions and guidelines.
The relevance of this topic lies in the fact that in conditions of an unstable economic environment, high inflation, unpredictable tax and monetary policies of the state, many enterprises are forced to pursue a policy of survival, i.e. limit yourself to solving current, immediate financial problems. However, the market situation requires the development of financial policies for the future.
The subject of the study is the financial policy of the organization.
The purpose of the course work is a comprehensive study of the process of formation and implementation of the financial policy of the organization.
In accordance with the goal, the following tasks can be defined:
1. Reveal the theoretical foundations of the organization’s financial policy.
2. Conduct an analysis of the financial policy of the enterprise using the example of OJSC LGEK.
3. Consider the implementation of the organization’s financial policy.
Theoretical foundations of an organization's financial policy
Concept, essence, goals and objectives of the organization’s financial policy
The interrelation of the directions of development of the enterprise, as well as the construction of a mechanism for achieving its goals with the help of financial resources, are implemented through financial policy.
Financial policy is the methods of solving financial tasks in the most important areas of financial strategy. Enterprises, being economic entities, have their own financial resources and have the right to determine their financial policies.
The financial policy of an enterprise is a set of measures for the purposeful formation, organization and use of finances to achieve the goals of the enterprise. (4, p. 109)
The financial policy of an enterprise is manifested in a system of forms and methods of mobilization and optimal distribution of financial resources, determines the selection and development of financial mechanisms, methods and criteria for assessing the effectiveness and feasibility of the formation, direction and use of financial resources in management.
The developed financial policy allows the enterprise not to slow down the pace of development, especially when the most obvious growth reserves, such as untapped markets, scarce products and empty niches, have been exhausted. At such a moment, companies that can correctly identify their strategy and mobilize all resources to achieve their strategic goals come out on top in the competition.
Financial policy is the most important constituent element general enterprise development policy, which also includes investment policy, innovation, production, personnel and marketing policies.
The object of the financial policy of an enterprise is the economic system and its activities in connection with the financial condition and financial results of the enterprise, as well as the cash turnover of an economic entity, which is a flow of cash receipts and payments.
The subject of the financial policy of an enterprise is intra-company and inter-company financial processes, relationships and operations, including production processes that form financial flows and determine the financial condition and financial results, settlement relations, investments, issues of acquisition and issue of securities.
The subjects of the financial policy of the enterprise are the founders of the organization and management (employers), financial services that develop and implement the strategy and tactics of financial management in order to increase the liquidity and solvency of the enterprise through the receipt and effective use of profits. (7, p. 13)
Financial policy consists of setting goals and objectives of financial management, as well as determining and using methods and means of their implementation, in constant monitoring, analysis and assessment of the compliance of ongoing processes with the intended goals.
The financial policy of the enterprise is comprehensive and is not limited to solving local, isolated issues, such as market analysis, development of procedures for the origin and approval of contracts, organization of control over production processes.
Achieving any task facing an enterprise is, to one degree or another, necessarily associated with financial costs, income and cash flows, and the implementation of any solution, first of all, requires financial support. (4, p. 122)
Financial policy does not study the essence of financial relations and does not develop mechanisms and methods for optimizing income, expenses and cash flows, but uses existing ones considered in financial management. At the same time, its role and significance do not become less significant. There are many ways to form, distribute and use financial resources, which ultimately allow the enterprise to develop. (4 p.130)
The basis of financial policy is a clear definition of a unified concept for the development of an enterprise, both in the long and short term, the selection of the most optimal ones from the variety of mechanisms for achieving set goals, as well as the development of effective control mechanisms. (9, p. 79)
Enterprises must actually become truly financially stable economic structures that effectively operate according to the laws of the market.
The main goal of creating an enterprise is to ensure maximization of the welfare of the owners of the enterprise in the current period and in the future. This goal is expressed in ensuring the maximization of the market value of the enterprise, which is impossible without the effective use of financial resources and building optimal financial relations both within the enterprise itself and with counterparties and the state. (5, p. 82)
The purpose of developing an enterprise's financial policy is to build an effective financial management system aimed at achieving the strategic and tactical goals of the enterprise.
The strategic objectives in developing financial policy at the enterprise are:
1) optimization of the capital structure and ensuring the financial stability of the enterprise;
2) profit maximization;
3) achieving transparency (not secrecy) of the financial and economic activities of the enterprise;
4) ensuring the investment attractiveness of the enterprise;
5) the enterprise’s use of market mechanisms to attract financial resources (commercial loans, budget loans on a repayable basis, issue of securities, etc.)
To realize the main goal of an enterprise's financial policy, it is necessary to find the optimal balance between such strategic objectives as maximizing profits and ensuring financial stability. (6, p. 113)
The implementation of the strategic goals of the enterprise is facilitated by solving tactical problems.
Tactical financial objectives are individual for each enterprise. They arise from strategic objectives, tax policy and the possibilities of using enterprise profits for production development. Unlike financial strategy, financial tactics are associated with the implementation of local enterprise management tasks.
The priority of strategic goals changes periodically both within one enterprise and from enterprise to enterprise. Many factors influence the priority of a particular strategic goal, which together can be divided into two categories - internal and external.
Main internal factors:
1. Scale of the enterprise - in small and medium-sized enterprises autonomy usually takes a dominant place, while in large enterprises the rate of profit prevails in the strategic direction, and the greatest attention is paid to economic growth.
2. The stage of development of the enterprise, which significantly influences the ranking of its strategic goals. The concept of “life cycle” allows us to identify the problems that arise for an enterprise throughout the entire period of its development, and to clarify the various combinations of financial tasks that successfully guide its activities. (5, p. 93)
3. Subjective factor of the enterprise management and owners. As a rule, the main goals are formed by the owners of the enterprise. In large enterprises, when there are many owners, the main strategic directions can be formed by the board of directors or the general director, but in the interests of the owners. Although shareholders do not directly make business decisions, especially day-to-day ones, they remain loyal to the enterprise as long as their interests are served.
The priority of a particular strategic goal of an enterprise can also be influenced by external factors. For example, the main parameters of the functioning of an enterprise can be influenced by the state of the financial market, tax, customs, budgetary and monetary policies of the state, as well as the legislative framework of the state. (10, p. 98)
The financial policy of an enterprise cannot be unshakable, determined once and for all. On the contrary, it must be flexible and adjusted in response to changes in external and internal factors.
The organization of financial policy is based on certain principles:
1) The principle of self-sufficiency and self-financing. Self-sufficiency assumes that the means that ensure the functioning of the organization must pay for themselves, i.e. bring income that corresponds to the minimum possible level of profitability. Self-financing means full recoupment of the costs of production and sales of products, investing in the development of production at the expense of one’s own funds and, if necessary, through bank and commercial loans.
2) The principle of self-government or economic independence, which consists in independently determining the development prospects of the organization, independently planning its activities and ensuring the production and social development of the enterprise.
3) The principle of financial responsibility, which means the presence of a certain system of responsibility of the organization for the conduct and results of business activities. Financial methods for implementing this principle are different for individual organizations, their managers and employees, depending on their organizational and legal form.
4) The principle of interest in the results of activities, determined by the main goal of entrepreneurial activity - the systematic receipt of profit.
5) The principle of control over the financial and economic activities of the enterprise. The finances of the enterprise perform a control function, because Since this function is objective, subjective activity - financial control - is based on it.
6) The principle of forming financial reserves, associated with the need to ensure the continuity of business activity, which is associated with great risk due to fluctuations in market conditions.
Also, one of the basic principles of financial policy is that it should be based not so much on the actual situation as on the forecast of its changes. Only on the basis of foresight does financial policy become sustainable.
Thus, the financial policy of an enterprise is always a search for a balance that is optimal for at the moment the relationship between several areas of development and the selection of the most effective methods and mechanisms for achieving them.
Financial policy— this is a set of measures for the organization and use of finance for the implementation of functions and development tasks related to the areas, means and forms of activity of the organization, the system of relationships within it, as well as its position in the external environment.
Financial policy sets the direction of financial activity and, using available opportunities and means, has a guiding influence on financial processes. It consists in setting the goals and objectives of financial management, as well as in determining and using methods and means of their implementation, in constant monitoring, analysis and assessment of the compliance of ongoing processes with the intended goals. Financial policy is manifested in a system of forms and methods of mobilization and optimal distribution of financial resources, determines the selection and development of financial mechanisms, methods and criteria for assessing the effectiveness and feasibility of the formation, direction and use of financial resources in management.
The goal of financial policy is to build an effective financial management system aimed at solving the strategic and tactical problems of the enterprise.
The main objectives of financial policy are as follows:
Providing sources of financing for production;
Avoiding losses and increasing profits;
Selecting directions and optimizing the production structure in order to increase its efficiency;
Minimizing financial risks;
Rational organization financial flows and calculations, ensuring maximum return and minimum risk;
Rational investment of profits in expansion of production and consumption;
Search for reserves for improving the financial condition and increasing the financial stability of the organization based on economic analysis.
The effectiveness of financial policy is determined by the degree to which goals and objectives are achieved. The effectiveness of financial policy as the level of achieving the best results at the lowest cost is measured by indicators of the financial efficiency of the departments and the organization as a whole, the efficiency of the direction and use of financial flows, material and labor resources.
The main means of implementing financial policy is the financial mechanism of the organization. The financial mechanism includes types, forms and methods of organizing financial relations, as well as methods for their quantitative determination.
The structure of the financial mechanism is quite complex. The multiplicity of relationships predetermines the use of a large number of elements of the financial mechanism. The spheres and links of the financial mechanism differ in varying degrees of complexity and ramifications individual elements. For example, the budget mechanism is characterized by a system of many types of taxes, as well as various areas of use of funds and methods of financing.
The elements of the financial mechanism form its structure, which is set in motion by establishing the quantitative parameters of each element, that is, determining the rates and norms of withdrawal, the volume of funds, the level of expenses, etc.
Quantitative parameters and methods for determining them are the most mobile part of the financial mechanism, since they are most often subject to adjustment.
Elements of the financial mechanism - financial relations as an object of management, financial levers, methods, legal support and information and methodological support for financial management.
Financial relations are the principles and system of interaction between business parties in the process of investing, lending, taxation, use of financial leverage, insurance, etc. Legislative and regulatory framework establish the rules of financial management and conduct of financial transactions, the rights and obligations of management and performers in the financial relations of the organization.
Financial leverage is a set of financial indicators, methods, techniques and means of influencing the management system on the economic activities of an organization. These include profit, income, price, wages, interest, dividends, financial sanctions, etc.
Financial methods combine accounting (financial and managerial), economic analysis (financial and managerial), financial monitoring, planning, regulation, control, budgeting.
. Accounting (financial and managerial) provides financial policy with the necessary information.
. Economic analysis is the main tool for constructing and assessing financial policy, identifying trends, measuring proportions, planning, forecasting, identifying factors, calculating their influence on the result, and identifying unused reserves. Based on the analysis, economically sound conclusions are drawn and recommendations are developed for improving the management of the production system.
. Financial monitoring (monitoring of financial condition) is a system of continuous monitoring and analysis of the financial condition and results of the organization’s work.
Budgeting methods form a system for constructing and implementing financial policy in plans and forecasts, in quantitative assessment. These methods also provide control over the process of implementing financial policy.
Financial regulation is the ability to influence financial processes and their results.
Financial control allows you to check the safety of capital and determine compliance real processes goals of financial policy, establish responsibility for violation of financial discipline.
