financial mechanism of the enterprise is a complex of measures on the organization of the resource management system in the field of finance.As the main strategic goal of establishing a mechanism defined by improving economic indicators, showing the profit maximization.
In this regard, we can say that the financial mechanism of the enterprise is aimed at the rational use of funds.That is why any costs that arise during the production process should be clearly justified and appropriate.
financial mechanism of the enterprise has some features:
- distribution;
- provides;
- control.
They all act in unison and have a deep relationship.The distribution function assumes the organization of such a mechanism, which would fully implement rapid movement of funds from one company to another.No less significant assurance system required volume of financial resources.Of course, to evaluate the effectiveness of the mechanism should be closely monitored its performance.The most striking example of such results can be noted revenue, that is the amount obtainable from the sale of products or services, or the cost price, that is, the amount of the costs incurred with the release of the goods.
can identify these elements of the financial mechanism:
- methods imply different ways of influencing the economic and financial relations and regulation of accumulation and distribution of assets.An example of such is the analysis, planning and forecasting, deposits and loans and others.
- Lever financial activities includes all kinds of tools with which and made an immediate impact on every aspect of the production process.The most striking levers are considered indicators such as income, profitability, interest rate discount.In other words, it is all the operations by which the increment of the value of assets comes from the same organization and the emergence of certain liabilities of the company partner.To classify tools for primary and derivative.Primary involve cash investments in securities, obligations to creditors and uncollected receivables.Derivative instruments are those that have been formed from the primary.To those include futures, forwards, swaps and other currency contracts.
- One of the key elements of the financial mechanism is considered to be the legal framework, which is the main document regulating relations in all of the transactions and operations, resulting in a cash resources.The legal framework assumes that the Tax Code, as well as a number of laws and regulations that establish basic rules for the operation of legal entities and private entrepreneurs.
- In modern conditions the financial mechanism of the enterprise can not exist without the introduction of new products in the field of information technology.Regular updating of information provision is considered to be the key to a successful business, as development allows to keep the leading position in the market of goods and services.
In addition, it is worth noting the main features of the enterprise:
- Any organization has a specific structure and legal form of organization.
- company engaged in the production of goods or services, is the main link in the chain of production of receipt to the consumer.
- Each legal entity shall have certain obligations to the state, manifested in the form of tax payments to the budget and extra-budgetary funds.
- The company operates on the principle of self-financing and self-sufficiency.
