Short-term financial policy

The economic activity of any enterprise includes several components. One of its components is financial policy. It is expressed in the totality of activities carried out by the owner, labor collective, administration (in accordance with the form of ownership and type of management). These events constitute financial policy instruments. It is carried out to find and apply means for solving the main tasks and implementing the main goals.

The set of measures includes the development of concepts that are scientifically grounded and aimed at the formation of activities, the establishment of key areas of application of funds. Current financial needs affect the duration of these activities. Of no small importance is the study of demand for services and products, the evaluation of different (material, intellectual, labor, information) resources of the organization, forecasting the results of activities. Thus, the company can implement medium-, long- and short-term financial policies.

The directions of the application of funds are set taking into account the set goals, developed by the concept, the organization's position in the market. Short-term financial policy promotes the most complete and effective application and increase of financial capacity. It reflects the purposeful application of the means by means of which the tactical and strategic tasks determined by the charter (constituent documents) of the organization are being solved.

Short-term financial policy allows to strengthen positions in the market of services (products), to achieve the optimal sales volume, profitability and profitability, to maintain solvency and liquidity of the balance.

In fairly harsh conditions of high inflation, instability of the economic environment, a crisis of non-payments, many organizations are forced to take measures aimed at survival. Short-term financial policy contributes to the solution of current problems, however, together with this, it forms some contradictions between the fiscal interests of the government and organizations. Contradictions are also noted between the profitability of production and the cost of foreign borrowings, the return on the stock market and equity, and others.

It should be noted the multifaceted nature of the content of financial policy. It consists of several basic links. Among them, it should be noted:

1. Development of an acceptable concept of cash management of the organization, which will provide protection against commercial risk and high profitability.

2. Definition of the main directions for the use of financial resources for the forthcoming period. It takes into account the possibility of developing production and trade activities, as well as macroeconomic conditions (discount rate, taxation, depreciation rates, etc.).

3. Implementation of practical measures aimed at achieving the goals. These include, in particular, financial control and analysis, evaluation of real projects for investment and financial assets, the choice of the method of financing the organization, and others.

The aggregate of these three main components makes up the content of activities related to the formation and application of monetary resources. The development of an effective system of financial regulation is associated with the emergence of problems associated with the harmonization of the development of the interests of the organization, the availability of an optimal level of financial resources, as well as maintaining a high level of solvency.