Finance companies associated with the movement of cash flows.Therefore, it is often identified with the concept of financial resources, or even cash.Of course, not all monetary relations can be attributed to the financial.This is true only in relation to the money relations, which are carried out according to the principles irrevocable, non-equivalence and indefinite that it is possible in the formation, use, distribution of cash income and individual trust funds in the form of financial resources.
concept and role of the finance functions of finance companies is closely linked.
Finance companies - is the relationship of an economic nature, is directly related to the circulation of cash flows, using the revenues and funds of funds in the process of production and reproduction.
subject of finance in the enterprise serve all economic relations, with which uses cash and money funds are used. Subjects in these relations are enterprises, audit companies, budgetary organizations, banks, insurance institutions, investment funds and other entities performing business entities.
Financial relations include relations connected with the creation of authorized capital;form of cash income, revenues, profits and other financial assets of the enterprise and their distribution;for enterprises and government on tax and other payments to the budget, the production subsidies;relations between enterprises in connection with the investment process, the implementation of share contributions, income, payment of fines, etc .;business relationships with banks, insurance companies to obtain loans, insurance payments;relations companies about intraindustrial income distribution.
functions of finance companies manifested through their essence in the process of reproduction.The main functions of finance companies is: the formation of resources in production and business activities;the use and allocation of financial resources in the provision of production, operating and investment activities for financial liabilities that arise before the budget and other economic entities, banks;control over the use and formation of resources in production processes.
Functions Finance companies show their intrinsic properties in virtually all economic processes that take place in the life of the enterprise, because they are mediated by the movement of financial resources in one direction or another.
enterprise finance function more fully disclose their nature.Most experts believe that finance is primarily characterized by two primary function: distribution and control .These two functions cooperate with each other.With an initial capital distribution is formed, the gross domestic product is distributed are determined by the cost proportion in the distribution of income, a better balance between the interests of producers, the state and the enterprises themselves.
general of finance are at the heart of distribution relationships needed to finance the production processes.Violation of uninterrupted circulation means an increase in costs may lead to a decrease in revenue, competitiveness and, consequently, of financial stability.To prevent this phenomenon needed control functions finances of the organization.
Control function is responsible for the cost accounting of absolutely all the costs of production and its implementation, services, works, revenue generation and use.
