Financial activities - the basis of successful enterprises

The financial activity of an organization is a set of methodologies, tools and strategies aimed at financial support of business processes in order to achieve certain results. Thus, the relevant activity of the enterprise provides for the comprehensive management of internal cash flows, ensures the construction and protection of financial reserves.

Financial management activities are carried out by the economic or financial department of the organization. In small enterprises, accounting can be responsible for this, as well as persons holding special managerial positions (commercial director, financial controller, and others).

Main goals:

  • timely supply of financial business and other branches of the organization;
  • attraction of financial flows and expansion of the organization’s capital;
  • timely repayment of debts, work with loans;
  • directing financial flows to the realization of certain goals;
  • analysis of the feasibility of financial costs and the prevention of unnecessary costs.

The construction of the financial activities of the organization must necessarily include the following activities:

  • the creation of authorized capital and its distribution in the enterprise;
  • pooling of funds for the realization of certain goals;
  • the direction of the flow of funds from the main activities of the company to cover production needs;
  • execution of financial allocations in accordance with the law (salary of employees, social and tax deductions);
  • management of financial resources received as profit from current activities.

There are three main areas of organizational financial activities:

  1. Financial forecasting and planning.
  2. Control over production and business activities.
  3. Operational financial and economic activity.

Financial planning and forecasting is to build a clear plan for the financial and economic activities of the enterprise. This work is carried out in two stages.First, experts predict the expected profit from the main activity of the enterprise, taking into account the possible risks, difficulties, seasonal components and other factors that depend on the specific sphere of work. As a result, a realistic picture of the expected financial and economic activity of the company is compiled. Already on the basis of the data obtained, a plan is constructed directly, taking into account market circumstances, the economic environment, taxation, demand, etc.

The process of monitoring and analyzing production and business activities includes special measures through which analysts and the management of the company seek to eliminate various economic risks that negatively affect the expected results. These include responding to various economic circumstances, effectively attracting available funds, reducing financial turnover in the event of certain difficulties. At the same time, there is no universal set of techniques: each enterprise develops its own methods after studying individual performance indicators for a certain period.

Operational or current financial and economic activity of the enterprise is carried out to ensure its stable solvency, rational allocation of available resources for the continuation of production. This direction provides for the search and application of various techniques for the rapid removal of various obstacles in the process of economic activity, as well as to ensure a steady income with a focus on its growth.

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