Financial activities carried out by any company, regardless of its ownership.It is the organization of financial relations appearing in the process of interaction with other individuals or legal entities.Such a relationship - part of money that arise during the movement of funds.
Financial activity - a complex system of activities whose purpose is the successful formation of the initial capital followed by a proportional provision of such actions: the formation and use of income and other financial resources, implementation of the commitments.
This system uses a variety of methods and forms to ensure the successful operation of enterprises and the implementation of the goals.In other words, it is a practical financial activities of the company, providing livelihoods and increase its effectiveness.
One of the main objectives of financial activity is considered to be the economic impact, carried out in relation to partners and guarantees the fulfillment of their contractual obligations.Another object is to provide a continuous circulation of the means necessary for the successful management of the enterprise, the implementation of the necessary fees and expenses as well as profits (in monetary terms).
Financial activity involves timely detection of the main causes of this circuit, which allows time to make management decisions to address them.Making informed decisions is possible provided the accuracy and completeness of the records.The financial performance of the enterprise - is the foundation for the excess of cash income over expenses.This allows it to make the necessary investments, the formation of reserves and funds for compensation of damages.
receipts from services and sale of goods provides a smoother process management and constant circulation of cash.Until the moment it enters all the costs of production financed by the previously generated current assets.The result of the circulation of investment is carried out compensation costs and the creation of its funding sources in the form of profits and depreciation.
Financial and cash flows associated with each other is carried out by means of financial management.Financial flows entails a decrease or an increase in cash flow.Regulation of the financial flow ensures the supply of the necessary funds for the enterprise.During the selection of financial solutions acceptable option defines the following points: a real opportunity to implement this option;changing parameters by which assess the financial condition of the next period or for the long term;related income and expenses;conditions of implementation of the decision;Other consequences of this option.
Financial Management addresses a large range of issues, including the entire set of financial and economic activity of receiving and spending funds.It has its own structure, which include financial analysis (on the basis of accounting data) and probabilistic estimates of future indicators (economic planning).Financial management is the active management of the financial condition of any company with the help of all the factors that affect it.
The company is responsible for the financial performance of its leader.On his orders, financial controls Financial Officer, and in his absence - the chief accountant.As a rule, the financial department is organized as part of the accounting, but sometimes it is a separate structural unit.
