Finance Functions

The basis of market relations is money, connecting the interests of the seller and buyers. As a result of economic relations, financial relations arise, in which market participants earn and use money for various purposes, while creating their own own funds. At the same time, the concept and functions of finance are a key category of interaction between market actors.

Finance has the following common features: they are related to the state, the production process, commodity-money relations, are a category of value (money), carry out the distribution of GDP and ND, are expressed in real monetary funds. The essence of the role and function of finance are interrelated.

The essence of finance is disclosed through the functions of finance. They are implemented through a financial mechanism that includes organizational forms of financial relations in the sphere of the national economy, the procedure for the use and formation of monetary centralized and decentralized funds, financial planning methods, financial legislation, financial planning methods, etc.

Finance performs a number of functions . A function is understood as an economic category manifestation of its essence, through it the circle of duties that this category fulfills is revealed. The functions of finance are stable and objective.

In the economic theory of a single view of the functions of finance there is no single point of view. Most researchers identify such functions as control, regulation and distribution.

Distribution function is carried out in all areas of public life: the non-material sphere of material production, circulation. At the micro level, the entities of distribution are legal entities and individuals, at the macro level - the state. Distribution is subject to GDP and ND.

This function covers three consecutive and interrelated steps: the formation, further distribution and use of monetary funds. The formation of funds means financial resources of business entities, households and centralized state funds. These funds are distributed using financial instruments. The use of finance ensures the expanded production and life of individual members of society, as well as the improvement of the nation-wide needs of the entire population.

The control function is connected with the movement of monetary funds of the value of GDP. With its help, the reproduction process is displayed through financial resources. Financial control informs society about the problems in economic and monetary relations in the country. This function signals deviations in the proportions of GDP and GDP, the need for the formation of trust funds of funds, creation of the availability of the necessary production resources.

The control function is manifested before the distribution process begins, in the process of using funds, when summarizing and assessing the execution of funds of funds. The function is realized through financial and economic, financial-budgetary and credit-bank control.

The objects of the control function are the financial performance of enterprises, firms, organizations. In this issue, much depends on the activities of the chief accountant, the employees of the financial department, the adequacy of financial information and compliance with discipline in the field of finance.

The regulatory function is related to the state's participation in the reproduction processes. At the micro level, this function stimulates the activities of enterprises (creating funds that contribute to improving the quality of the production process), at the macro level - regulates government spending, state credit, taxes.

These are the main functions of finance, which reveal the essence of this sphere of relations.