Finances of organizations: content, functions and principles of formation

Finance organizations represent a certain monetary relationship that arise in the process of drawing up and using the principal as well as working capital. It is on their basis that various monetary funds function.

Finance of budgetary organizations, as well as commercial enterprises, performs a number of functions.

The first is the distribution, which consists in carrying out their activities while dividing part of the value of GDP, national wealth and income.

The second is the control function of finance, it is expressed in the ability to reflect objectively and monitor the economic condition of the subject, the entire industry, the national economy. It is able to actively influence their functioning.

Finance organizations have a number of specific qualities and characteristics.

First, they have a monetary expression. Secondly, they have a distributive character. Thirdly, they express the composition and use of all types of profit and savings.

Finances of organizations are of special importance both for the company itself and for the economy of the Russian Federation:

1. They contribute to the formation of economic resources throughout the country, which are used for budgeting and drawing up extra-budgetary funds.
2. At the company level, they are able to provide the area of material production. This is due to financial resources, as well as funds to ensure that the continuous process of reproduction.
3. At the level of the collective of employees, with the help of financial investments, a payroll fund is formed. In addition, they contribute to the implementation and operation of social development programs.
4. Finance organizations provide a balance in the economy between monetary and material funds, which are intended for the purpose of accumulation and consumption. They serve as the most important tool in economic stimulation, control over the economy of the whole country, and also act as a management mechanism.

The principles of organization of the company's finances are as follows:

• Self-financing;
• Differentiation of investment and main activities;
• Financial independence;
• Division of capital into non-current and circulating capital;
• Responsibility, interest and control over the results of financial and economic activity;
• Allocation in the sources of formation of working capital for borrowed and own;
• Mandatory availability of trust funds.

In accordance with these principles, the organization of the company's finances of any form of ownership takes place. As a result, resources should be formed in such a size that it will be necessary to carry out economic and commercial activities.

This process is necessary at the stage of establishing a company with the help of drawing up a statutory fund, the sources of which may be several (share contributions, equity capital, manager's own funds, long-term loans, budget funds, grants, etc.).

Correctly organized commercial calculation will ensure the economic independence of the company and its prosperity. In the future, the mechanism of organization must be formed, that is, the management system of the economic entity in order to achieve maximum profit and high competitiveness.

For this purpose, it is necessary to use financial methods, economic instruments, information and methodological and legal support in management. This mechanism should ensure the most complete and effective implementation of financial functions.