Basics of financial management laid down in every area of the business entities of economic activity.At the same time they have quite successfully use special methods of influence on the finances when an appropriate relationship.They are characterized by such methods of financial management and common practices as financial planning, programming, and forecasting.We can not forget about financial regulation, management promptly and implementing financial controls.
Basics of financial management in terms of the planning and forecasting occupy one of the main places in the system of governance.That's when planning any business entity estimated overall finances, revealed the possibility of growth in the value of resources and determine the direction of their most effective use.
Basics of financial management, using a tool such as planning, effectively displayed in the evaluation of the state of affairs in the near future.In other words, the analysis of prognostic information, the process of obtaining which is called "prediction."The forecast represents some of the events for the future, which are based on observations, generalizations, and certain restrictions.
Financial forecasting justifies plan with foresight economic situation in a specific period of time.Based on practice, highlighted the long-term and medium-term forecasting of financial activity.At the same time the foundations of the financial management in the field of forecasting based on determining the actual amount of resources to their needs in the planning period.These projections are an essential element in the implementation of monetary policy.Among conventional methods of forecasting methods should be allocated:
- expert assessments;
- temporal and spatial processing sets;
- a situation analysis;
- simulation.
structure of financial management would be considered not completely without such important elements as programming.This planning method, which uses a target-oriented approach in its foundation laid targets (explicit) and the means of achieving them.
This mechanism provides for the financial management: setting priorities in spending in key areas, the desire for more efficient use of resources and suspension of funding when another more acceptable option.
Select a specific version of the program depends primarily on the economic and resource factors.It should be taken into account, in addition to size, value and complexity of the goal, yet the amount of available reserves, the projected overall effect and theoretical loss is not achieved goal.
