If the income exceeds the expenses, the amount of the excess can...

If the income exceeds the expenses, the amount of the excess can be sent to the reserve fund.

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If the income exceeds the expenses, the amount of the excess can be sent to the reserve fund.

In the process of developing a financial strategy, special attention is paid to the production of competitive products, completeness of identifying cash income, mobilization of domestic resources, maximum cost reduction, formation and distribution of profits, determining the optimal need for working capital, rational use of borrowed funds, efficient use of enterprise capital.

It is important to take into account risk factors for the formation of financial strategy. The financial strategy is developed taking into account the risk of default, inflation fluctuations, financial crisis and other unforeseen circumstances.

The basis of long-term financial planning is forecasting, which is the embodiment of the company’s market strategy. Financial forecasting is to study the possible financial condition of the enterprise for the future. In contrast to planning, forecasting involves the development of alternative financial indicators and parameters, the use of which in accordance with trends in the market allows to determine one of the options for the development of the financial condition of the enterprise.

The result of long-term financial planning is the development of three main documents:

profit and loss statement forecast; cash flow forecast; forecast of the balance of assets and liabilities of the enterprise.

The success of the company’s financial strategy is guaranteed when the financial strategic goals correspond to the real economic and financial capabilities of the company, when financial management is clearly centralized, and its methods are flexible and adequate to changes in the financial and economic situation.

In a market economy, to solve production and commercial problems that require investment, it is necessary to develop an internal company document – a business plan.

The business plan has:

give specific ideas about how the company will operate, what place it will occupy in the market; contain all the production characteristics of the future enterprise, describe in detail the scheme of its operation; to reveal the principles and methods of enterprise management; it must contain a financial management program, without which it is impossible to start any business and ensure the effectiveness of its implementation; show the prospects of the enterprise to investors and creditors.

The process of drawing up a business plan is governed by the following incentive motives:

provide information about the company and the intentions of the owners; set out the strategy and tactics of the enterprise and show how the various divisions of the enterprise interact, being one whole; highlight financial objectives and develop detailed estimates that can be used to control actual costs and revenues; persuade a third party to provide the necessary funds or assist the company in another form.

The generalization of not very extensive experience in drawing up business plans by domestic enterprises makes it possible to identify the following areas of their application:

the choice of economically advantageous areas and ways to achieve positive financial results by enterprises under the new economic conditions, the general insolvency of the subjects; preparation of investment projects by enterprises to attract investments and bank loans; preparation of projects for the issue of shares, bonds and other securities of enterprises; attracting foreign investors for enterprise development; substantiation of proposals on privatization of state and communal property enterprises.

The financial plan is the most important element of the business plan, which is developed both to justify specific investment projects and to manage current and strategic financial activities. This section of the business plan includes the following components:

sales forecast; balance of cash inflows and outflows; table of income and expenses; projected balance of assets and liabilities of the enterprise; break-even point calculation.

Drawing up a financial plan can take place in three stages:

Analysis of the expected implementation of the financial plan for the current year. Consideration and study of production and marketing indicators, on the basis of which the planned financial indicators will be calculated. Development of a draft financial plan.

The purpose of drawing up a financial plan is to reconcile income and expenses. If the income exceeds the expenses, the amount of the excess can be sent to the reserve fund.

The financial plan is drawn up for the year with a breakdown by quarters. Development of the financial plan begins with calculation of indicators of income, and then its expense parts.

Enterprises that do not make a business plan, sales revenue will be determined by direct calculation, based on the planned volume of the product range, or using the consolidated method. Businesses that work with a business plan, sales revenue is reflected in the "Forecast of sales" and in the "Table of income and expenses".

Thus, in the process of financial planning is a specific link between each type of costs and deductions with the source of funding.

Operational financial planning involves the compilation of a payment calendar, cash plan and settlements in short-term loans.

Operational financial work is connected with the organization of calculations to ensure timely and high-quality execution of payment documents, settlements with other enterprises, credit institutions, the budget.

The payment calendar is based on the order and timing of all settlements, which allows you to timely transfer payments to the budget, https://123helpme.me/narrative-essay-topics/ to the state budget trust funds, to provide continuous financing of economic activity. The payment calendar is made for short terms – up to one month. Large enterprises make a calendar for short terms – 5-10 days.

The ratio between the two parts of the calendar should be such as to ensure that they are equal or that revenues exceed expenditures. The excess of costs over revenues indicates a decrease in the company’s ability to cover future costs.


Reforming the economy of Ukraine: characteristics of the issue. Abstract

Economic transformations in Ukraine should be aimed at solving the most important task – these are radical changes in the system of economic management at both the macro and micro levels (levels of enterprises and associations)

Changes at the micro level are the restructuring of the organizational structure of management of enterprises, the creation of industrial and financial groups, holding companies. The need to create and develop new forms of entrepreneurship in Ukraine is objectively due to the need of enterprises in more flexible structural forms capable of adapting to rapid changes in the external environment.

Solving the problems of transformation of the national economy of Ukraine on a market basis, the transition to new advanced technological processes requires significant investment. According to experts, Ukraine needs $ 40-50 billion to create a full-fledged export-oriented economy. USA. Domestic investment opportunities are currently limited and depend on the general economic situation in Ukraine, which currently has a negative impact on all investment processes.

In the current economic conditions, the process of renewal of fixed assets has virtually stopped – the coefficient of their disposal is less than 1%. Depreciation of fixed assets in some industries is 70-80%. This indicates a decrease in the technical level and competitiveness of production. According to experts, Ukraine has potential opportunities for effective development of foreign investment in the amount of 2-2.5 billion dollars. USA for the year.

This amount is sufficient for the reconstruction of priority sectors of the economy for 5 years. And if we focus only on our own reserves, this process will inevitably last 20 years or more.

Investments, including foreign ones, are not only a mechanism of development, but also a way of regulating the economy through the transfer of capital. At the present stage of market development, foreign investment is the main source of the latest competitive technologies.

The purchase of Ukrainian enterprises or their shares, ie the implementation of mergers (acquisitions), foreign investors see as an attractive way to invest from those positions that reduce the risk due to inefficient management. At the same time, the chances of applying best practices in the field of obtaining new technologies and working capital during the protracted crisis are increasing.

It follows from the above that today Ukraine needs effective mechanisms to attract foreign investment, investment from high-tech Western countries. This is the mechanism we consider the holding system.

One of the most common structures characteristic of a developed market economy is a form of organization such as a holding (holding system). The operation of holding systems, on the one hand, has a number of advantages over conventional joint stock companies, and on the other hand – are characterized by features that create new problems and difficulties that are not typical for individual companies.

Ukraine does not have much experience in forming holding systems. According to the Antimonopoly Committee of Ukraine, for the period from 1994 to 1999, about 900 holding companies and associations of enterprises with the characteristics of a holding system were formed in Ukraine with the permission of the Committee. The effectiveness of the process of creating holdings depends on the state regulation of business activities and on the development and implementation of appropriate management tools for modern holdings of organizations. An important component of management in this case is the mechanism of investment interaction of the holding and subsidiaries, methods of investment planning, organizational support of investment activities and profit distribution.

Issues such as the formation of the holding company’s structure in relation to its life cycle, the creation of an effective mechanism for interaction of the holding group with investors, intensification of managers in the development and implementation of investment projects need to be developed taking into account the national economy of Ukraine.