The activities of any organized team are based on the effectiveness of attracting and using cash, or managing the finances of an enterprise. Properly organized financial activities lead to high results.
Enterprise Finance Management
The level of profit received by the enterprise is directly related to the proceeds from the sale of products of its own production exceeding production costs.
Financial management of an enterprise will be effective when management decisions clearly regulate cash flow.
Properly organized planning of financial flows allows you to safely pass the stage of borrowing seed capital from an external source and enter the position when the company's income becomes the main financial source.
Enterprise Finance Management System
The success of the enterprise depends on a well-coordinated, well-built management system for complex, multivariate, diverse cash flows. The financial management system of an enterprise, or financial management, aims to achieve corporate results.
During the transitional economy, financial management consists in the development of measures aimed primarily at the survival and elimination of bankruptcy.
With the development of the economy, the goals of the enterprise become more complex, the priority is to set the maximum estimate of the market value of the enterprise. The management system or financial management includes various principles, financial instruments and methods, indicators and organizational structure.
There are general rules for financial management, which are based on independence, self-financing, responsibility for the result, interest in economic efficiency, on creating reserves, on control. The management system is designed to ensure the simultaneous application of these principles and distribute them across all sections of corporate cash.
Methods of financial management of the enterprise are built on the basis of the developed principles, methods of accounting and analysis, planning and control.
Financial accounting is governed by international reporting standards, that is, information on financial position and flows is submitted in accordance with the rules. Analysis is an assessment of the efficiency of management, as well as the economic development of the enterprise.
The method of managing financial flows in the enterprise is aimed at optimizing cash for the future development. A key role in the management system belongs to the enterprise budget. Closes the system of financial control. Financial management of an enterprise in Russia is undergoing a transition from the development of algorithms for solving simple problems to complex, complex tasks.