For the occurrence finance As a sphere of economic relations, it is necessary for the emergence and coincidence in time at a certain historical stage of a whole set of conditions (or prerequisites), such as:

• education and recognition of individuals for goods, services, land, etc.;
• the existing system of legal norms regarding property relations;
• strengthening the state as a spokesman for the interests of the entire society, acquiring the status of owner by the state;
• the emergence of socially diverse population groups.

All these conditions arise under one general prerequisite: a sufficiently high level of production, an increase in its efficiency, growth and exceeding the limits necessary for biological survival.

The formation, distribution and use of monetary income is the main condition for the emergence of finance.

Financial interests are the interests of the owners of monetary income.

For the emergence of finance, a high level of development of the monetary economy, a constant circulation of money in large quantities, and the formation and use of the basic functions of money are also necessary. Finance- is the movement of cash income. Financial relations always affect property relations. These are not only monetary relations, but also property relations. The subject of economic relations must always be the owner. It is by distributing and using cash income, of which he is the owner, that each participant in economic relations can realize his interests.

Financial resources

No economic or political decision of any importance can be implemented without a preliminary assessment of the amount of monetary income required for this. The distribution and accumulation of monetary income acquires a targeted character. The concept of “financial resources” arises. Being monetary income, accumulated and distributed for certain purposes, financial resources are used for various social, economic, scientific, cultural, political and other purposes (Fig. 18).

Financial resources- These are accumulated incomes intended for specific needs.

Rice. 18. Main directions of use of financial resources

Financial resources serve all stages of the movement of cash income from their formation to use.

Since finances are determined by the movement of cash income, the patterns of their movement affect finances. Income usually passes through three stages (stages) in its circulation (Fig. 19):

Rice. 19. Stages of cash flow (finance)

Finance, as we see, relates to all stages of the formation, distribution and use of monetary income. Primary income are formed as a result of the sale and distribution of proceeds from the sale of goods and services. Since the production process is, as a rule, continuous, it is necessary to allocate part of the proceeds at the stage of sales of goods to ensure the continuity of the production process.

Primary income is formed as a result of expanded commodity production and is serviced by finance.

Rice. 20. Process of expanded reproduction

Primary distribution is the formation of primary income based on gross receipts.

Secondary distribution of monetary income (redistribution) can occur in several stages, that is, it is of a multiple nature.

As can be seen from the schematic recording of the abstract production process (Fig. 20), any production ends with the primary distribution of monetary income, without which further economic development is impossible. And the distribution of money income ( D") is served by finance. The allocation of financial resources for the expansion of production takes the following forms: payment of current material costs, depreciation of equipment, rent, interest on loans, wages of workers employed in this production. After the primary distribution of monetary income, the processes of redistribution begin, i.e., the formation of secondary income. These are primarily taxes, contributions to insurance funds, contributions to social, cultural and other organizations.

Last stage distribution and redistribution of income - their implementation. Realizable income called final. Part of the final income may not be realized, but directed towards accumulations and savings. However, there is the following financial equality, which is not violated under any circumstances:

ΣA = ΣB + ΣС,

• A— primary income;
• IN— final income;
• WITH- savings and savings.

The distribution process is influenced not only by finances, but also by prices.

Since the process of selling any goods (goods, services, etc.) into cash income is carried out at certain prices, then price dynamics has an independent impact on the distribution process. The more prices change (both up and down), the more money income fluctuates. These shifts occur especially sharply in conditions of inflation.

Financial resources as part of cash income come in various forms. For the real sector of the economy (production) this is part of the profit, for the state budget - the entire amount of its revenue part, for a family - all the income of its members, etc.

Financial resources- this is that part of the funds that can be used by their owner for any purpose at his discretion.

The process of distribution and redistribution of financial resources

Financial resources are offered on the market by a large number of business entities and the population. It is clear that potential users (consumers) of these funds are not able to independently establish business relationships with every business entity, with every citizen. In this regard, the problem arises of combining scattered savings into significant amounts of financial resources that can be offered for use by a large potential investor.

This problem is solved financial intermediaries(banks, investment and mutual funds, investment companies, savings associations and
etc.), which accumulate free resources, primarily from the population, and pay interest on these resources. Financial intermediaries provide raised resources as loans or place them in securities. Their income consists of the difference between the interest paid on the resources attracted and the interest received on the resources provided.

Owners of cash savings can transfer their funds to investment companies, or they can directly acquire industrial corporations. But in the second case, they will encounter intermediaries - dealers And brokers, which represent professional participants in financial markets. Dealers carry out transactions independently, on their own behalf; brokers act only on behalf of clients and on their behalf.

Timely financial market offers potential investors wide investment opportunities through the acquisition of monetary obligations of a wide range of business entities. These monetary obligations are called financial instruments. These include: promissory notes, futures contracts, etc. A variety of financial instruments allows money owners to diversify their investment portfolio, that is, invest their savings in the obligations of different companies and banks. These obligations will have different returns, but also different degrees of risk. If a company goes bankrupt, investments in other companies will remain. Diversification of an investment portfolio is carried out according to the principle: “you cannot put all your eggs in one basket.”

Financial relations as a sphere of economic activity

Financial relations- these are relations associated with the distribution, redistribution and use of monetary income.

The phenomenon of financial relations as a sphere of economic relations in society arises at the stage of distribution of primary income (Fig. 21).

Rice. 21. Financial relations at the stage of distribution of primary income

Financial relations, arising in connection with money and servicing the circulation of money income, concern almost all individuals and legal entities. Main participants in financial relations are producers of any product (real sector of the economy); budgetary and non-profit organizations; population, state, banks and special financial institutions. In the course of their development, financial relations give rise to credit and exist with them in close relationship (Fig. 22).

Credit relations is part of financial relationships. Both are the result of monetary relations.

Rice. 22. The place of credit and financial relations in the structure of economic relations

Credit relations arise in connection with the provision of money by one entity to another (individuals and/or legal entities) on the terms urgency, repayment, payment.

The main difference between financial and credit relations is the repayment of funds provided on the terms of urgency, repayment and payment.

Usually isolated three stages of income flow, reflecting the formation of primary, secondary and final income.

Primary income are formed as a result of distribution (work, services). The amount of revenue is divided into a fund for compensation of material costs incurred in the production process (cost of raw materials, equipment, rent), the employee and the owner of the means of production. Thus, during the primary distribution, the income of the owners is formed. In addition, the following circumstance should be taken into account: indirect taxes established by the state are included in primary income. Therefore, at this stage, government revenues are partially generated.

At the second stage, from primary income Direct taxes and insurance payments are paid, and assistance is provided to the disabled. From the newly created funds of funds, in particular, from various levels of government, funds are paid representing the expenses of workers in the non-material sphere, doctors, teachers, notaries, office workers, military personnel, etc.

As a result of this process, a new income structure is formed. It consists of secondary incomes formed during the redistribution of primary incomes.

But doctors, teachers, and employees, in turn, pay taxes and make insurance contributions. These taxes and contributions form funds intended for certain payments. As a result of such payments, tertiary income may be generated. The chain of their formation is almost impossible to trace. The movement of these incomes is a very complex process.

The result of this process, its third final stage, is the formation of final income. They are used to purchase goods and services. A certain portion of income is saved.

The amount of primary income for a certain period necessarily equals the amount of final income plus savings. Distribution and redistribution of income means the formation of a new structure. Moreover, this structure reflects the economic relations (connections) between economic structures and the state.

At each stage of income generation, funds of funds are formed, i.e. finance. Consequently, it is finance that mediates the processes of distribution and redistribution of income.

The result of the functioning of the financial system is a changed structure of income.

Distribution process added(newly created) cost through is shown in Fig. 1. As can be seen from Fig. 1, as a result of the distribution of primary income of owners (entrepreneurs and workers), the income of workers in the non-material sphere is formed. However, it should be taken into account that in reality distribution processes are much more complex than reflected in Fig. 1. Part of the income of workers in the material sphere is distributed in favor of workers in the non-material sphere directly through the consumption by the former of services provided by the latter. This is how the income of lawyers, notaries, security guards, etc. is formed. In turn, they pay taxes to budgets participating in subsequent redistributions of income.

Finance as monetary relations arises at the stage of distribution. But they are the most important link in everything and have the strongest influence on it.

Rice. 1. Distribution of added value through the financial system

Control function

Control function consists of constant monitoring of the completeness, accuracy and timeliness of receipt of income and implementation of expenses from all levels and. This function manifests itself in any financial transaction. All these operations must not only be economically feasible, but also not contradict current legal norms. The control function of finance is expressed in the formation of funds of funds (budgets and extra-budgetary funds) in accordance with the declared goals and according to the standards established by the legislature. This function involves not only monitoring processes occurring in the financial sector, but their timely adjustment in accordance with the norms of current legislation.

The practical expression of the control function of finance is the system. This control ensures the validity of the formation of budget system revenues and the expenditure of budgetary funds and extra-budgetary funds. Financial control is divided into preliminary, current and subsequent. Preliminary control is carried out at the stage of developing forecasts of budget revenues and expenses and preparing draft budgets. Its purpose is to ensure the correctness of budgetary indicators. Current control is responsible for the timeliness and completeness of the collection of planned income and the targeted expenditure of funds. Subsequent control is aimed at verifying the reporting data.

Stimulating function

Stimulating function finance is associated with the impact on processes occurring in the real economy. Thus, during the formation of budget revenues, tax benefits may be provided for certain industries. The purpose of these incentives is to accelerate the growth rate of technologically advanced products. In addition, the budgets provide for expenses that can ensure structural restructuring of the economy through financial support for high-tech technologies and the most competitive industries.

Finance, understood in the broad sense of the word, includes all monetary funds, including loans. Therefore, credit relations are part of finance. is the movement of the loan fund.

One can also define credit as a system of economic relations regarding the transfer from one owner to another for temporary use of values ​​(including money). Credit relations have their own specifics. A loan is associated with the transfer of a fund of funds for temporary use on the terms of repayment, urgency, payment, and security. These conditions distinguish credit relationships from other financial relationships.

See also:

Here we will collect everything related to a reasonable approach to personal finance: what to spend on, where to get it, etc. There are many methods for allocating expenses, however, many of these methods have general principles, which we will consider below.

What do a free bachelor and an exemplary family man, a stay-at-home mom and a nightclub conqueror have in common? Right! All of them periodically scratch their heads thoughtfully, asking the long-standing rhetorical question: “Where does the money go?” At the same time, you probably know people who have found a middle ground between austerity and criminal extravagance. They do not ask themselves and others rhetorical questions. They gradually move towards their goal (each has their own goal). At the same time, they do not consider themselves disadvantaged in any way - simple planning of personal finances and family budgets works wonders!

The main rule: income must be greater than expenses.

Consider income and expenses

Does money disappear without a trace? Get a special program for budgeting, create it yourself, or buy a notepad. To create a monthly budget, you will have to write down all your expenses for six months, so you can average it out and figure out how much of your income you can save to make your dreams come true. Income includes:

• Salary: yours and your significant other’s (if you have one);
• Additional part-time jobs (good material: and +);
• Outside help (parental, sponsorship, etc.).

Record everything, down to the smallest detail. Additionally: .

Eliminate unnecessary expenses

A lot of useless little things eat up up to 40% of the budget. “Snacks” in the form of chips, salty crackers and cookies also spoil your health. The eerie earrings, bought in frustrated feelings, are thrown into the far corner of the box. The “magic” vegetable cutter is gathering dust in the corner - you don’t cook enough to use it. Men are guilty of loving new gadgets, changing their phone every year and purchasing another tablet. What about bad habits? A smoker spends about 600 USD on cigarettes. in year! Plus the cost of treatment, which will be needed sooner or later...

Keeping a list of your expenses will help you identify unnecessary expenses. Ask yourself: “Why do I need this?” when your gaze once again falls on an item of dubious necessity.

An important nuance: expenses for children (if you have them) are not considered unnecessary expenses. In addition to the essentials for them, include a “pampering” section in your budget. Pleasant surprises, joint trips to the movies and nature, and (sometimes) chocolates will not only please the kids, which is priceless in itself. Properly presented, they will lay down the need to care for your neighbor. And when old age comes, your children will delight you.

Record your main expenses

Before purchasing an unplanned item, subtract basic expenses from your total income. These include:

Payment for apartment and utilities. If you have your own apartment, it is not recommended to relax: financial planners advise setting aside an amount every month that you could spend on rented housing. It is not at all included in “free money” - later you will be able to buy a new apartment with the savings and rent it out, or give it to your grown-up children;

• Amount for food for the whole family (or you personally if you live alone);
• Expenses for a kindergarten, sports club, tutor for a child, etc.;
• Clothes and shoes that you cannot do without, as well as personal hygiene products and household chemicals;
• Gifts for loved ones if a holiday is approaching (here it is best to get an envelope and put some amount into it every month, as a result, for the holidays you will not have to cut other expenses to buy gifts).

Subtracted? The remainder is "free". It is advisable to spend it at the end of the month, on the eve of the next financial injection. Or put it aside. Save for something: starting your own business, a new apartment, a car. Yes, at least for a chic winter coat! The main thing is that the goal must be realistic.

A nuance: spontaneous purchases are real happiness for many. A financial diet, like a regular one, allows you to “zigzag” - it is important to feel moderation.

There are many options for income distribution, here is another very effective one:

50% - current expenses;

10% - “just in case fund”;

10% - savings;

20% - investments;

10% - savings for large purchases, vacations, cars.

Ensure financial circulation

It is considered normal if a person (family) can afford to save 10-25% of their income, and in their “piggy bank” they have an amount that allows them to live at their usual level for six months. Ideally, the “piggy bank” is invested in the business (for example), and, in turn, generates income. Is it still far from ideal? Start small: when writing down your expenses, get rid of, if possible, unnecessary expenses - you probably have them. Get involved in your own future. Is it worth it, for example, to wait for “sea weather” while registering with the employment fund, if you can start earning money now? Even if without work, an apartment bought after n number of years will provide you more accurately than a modest pension!

• - Some things should be taken care of in advance.

The basics of planning personal finances and family budgets that we have listed will help you sort out everyday troubles in the shortest possible time. You will be surprised to discover the presence of free funds (even if small at first) and improve relationships with loved ones (most family quarrels are related to money). Let's start planning right now?

• - from inflation, from thieves, etc. Details: .
• — let's fantasize?
• and (various subtleties)?

Finance as an economic category is manifested in the functions it performs. From the point of view of financial science, there is a certain unity of functions of the finances of the state, enterprises and households. At the same time, there are differences between them due, on the one hand, to national interests, and on the other, to aspects of the entrepreneurial activity of enterprises and the personal interests of citizens.

It is believed that the functions of finance are a mechanism through which the state can influence the behavior of economic entities. In this case, the essence of finance is manifested in the following functions:

1. Distribution, changing the structure of the national income of society;

2. Regulating, changing the motivation of business entities in order to achieve the goals of society at one or another stage of its development.

3. Monitoring, evaluating and comparing the effectiveness of using redistributed funds in order to change the parameters of such redistribution.

Let's take a closer look at the distribution function. In the educational manual "Finance" created by the authors Avdeeva V.I., Krutikov V.K., Kostina O.I., Gubernatorova N.N. it is written that: The distribution function must manifest its effect in all spheres of social life. With its help, it is possible to distribute new value at the micro level and redistribute this value at the macro level. This finance feature allows you to:

the formation of monetary funds at the level of commercial and non-profit organizations and households, as well as the state;

creation of special-purpose funds that are of utmost importance in the economic and social life of the population;

implementation of intersectoral and interterritorial redistribution, including between industries, spheres and social groups;

formation of the necessary reserves at the level of organizations and the state.

Objects of distribution: GDP value and national income.

Subjects of distribution: state, legal entities and individuals.

The distribution of GDP and ND with the help of finance is carried out in two stages. The distribution diagram of GDP and income in the Russian Federation is presented in Appendix 1 (Fig. 1.)

First stage. Primary distribution of national income (creation of basic (primary) income. Incomes are: wages of any workers, employees; income of enterprises in the spheres of material production. The sum of primary income groups is equal to national income.

Second phase. Secondary distribution (redistribution) of national income. It is needed to implement:

intersectoral redistribution of basic incomes in the interests of rational use of income and savings of enterprises;

the presence of a non-production environment, without which production cannot function effectively;

ensuring social development;

redistribution of income between different social groups of the population.

As a result of redistribution, secondary income is generated. These include: taxes, payments and fees (except for indirect taxes), contributions to insurance funds, public organizations, as well as income received in non-productive sectors.

Distribution and redistribution in the Russian Federation occurs in the interests of structural restructuring of the national economy, the development of priority sectors of the economy and the social sphere, as well as support for the least affluent segments of the population - pensioners, students, single and large mothers, etc.

But there are other arguments regarding the participation of finance in the distribution and redistribution of the value of GDP, income from foreign economic activity and part of the national wealth. This participation is shown in Appendix 2 (Fig. 1).

First stage. The value of GDP without taking into account intermediate consumption breaks down into primary income and depreciation.

Second phase. Cash income of economic entities also forms income related to foreign economic activity (from foreign trade and external borrowing, dividends on securities from foreign issuers, pensions and other income).

Third stage. The redistribution process affects the movement of funds between economic entities. Redistribution occurs: firstly, through the budget system - the receipt of direct taxes on the profits of organizations and the income of individuals to the budget; state and municipal borrowings; cash transfers to organizations and households in the order of spending budget funds (allocations, subsidies, subventions, pensions, etc.);

secondly, through the financial market - raising funds by issuing securities, placing shares and shares, credit agreements and loans by some economic entities and the simultaneous placement of temporarily free funds in the corresponding assets by other entities; receipt of dividends, interest; insurance premiums and insurance compensations (payments).

Fourth stage. Also, part of the national wealth also participates in the process of distribution and redistribution.

Fifth stage. For the purpose of consumption, economic entities not only use generated income and savings, but also direct them for further accumulation (investments and savings).

From this it is concluded that the participation of finance in the distribution and redistribution of newly created value and partly the value of previous years is a very complex process, which is characterized by high mobility of created and spent monetary income.

The formation and use of financial resources is carried out at two levels: nationwide and at each enterprise. The size and structure of sources for the formation of financial resources on a national scale determine the possibilities for expanded reproduction of the national economy, raising the level of members of society, and increasing state budget revenues. The size of financial resources generated at the enterprise level determines the possibility of making the necessary capital investments, increasing working capital, fulfilling all financial obligations, and meeting social needs.

The initial formation of financial resources occurs at the time of establishment of the enterprise, when the authorized capital is formed. Its sources, depending on the organizational and legal forms of management, are: share capital, share contributions of members of cooperatives, industry financial resources (while maintaining industry structures), long-term credit, budget funds. The size of the authorized capital shows the size of those funds - fixed and working capital - that are invested in the production process.

The main source of financial resources in operating enterprises is the cost of products sold (services provided), various parts of which, in the process of revenue distribution, take the form of cash income and savings. Financial resources are formed mainly from profits (from core and other activities) and depreciation charges. Along with them, sources of financial resources also include:

• -- proceeds from the sale of disposed assets,
• -- stable liabilities,
• -- various targeted revenues (fees for maintaining children in preschool institutions, etc.),
• -- mobilization of internal resources in construction, etc.

The processes of privatization of state property that are unfolding everywhere lead to the appearance and will play an important role of another source of financial resources - shares and other contributions of members of the labor collective.

Significant financial resources, especially for newly created and reconstructed enterprises, can be mobilized in the financial market. The forms of their mobilization are: sale of shares, bonds and other types of securities issued by a given enterprise, credit investments.

Before the transition to market economic conditions, significant financial resources of the enterprise were obtained on the basis of intra-industry redistribution of funds and budget financing. However, the principles of market management and the introduction of commercial principles into the activities of enterprises naturally required fundamentally different approaches to the formation of financial resources. Orientation towards initiative and entrepreneurship, full financial responsibility led to two major changes in the field of financial relations of enterprises with other structures: firstly, the development of insurance operations, and, secondly, a significant reduction in the scope of gratuitous appropriations. In this regard, during the transition to market principles of economic management, insurance compensation payments received from insurance companies will gradually play an increasingly greater role in the composition of financial resources formed in the order of redistribution, and budget and industry financial sources will gradually play a lesser role. Enterprises will be able to receive financial resources: from associations and concerns of which they belong (only if this is provided for by the mechanism for using the corresponding monetary funds); from higher organizations - while maintaining industry structures; from government bodies - in the form of budget subsidies for a strictly limited list of costs. But in the conditions of functioning of the securities market, such types of financial resources will appear as dividends and interest on securities of other issuers, as well as profit from financial transactions.

The use of financial resources is carried out by the enterprise in many areas, the main of which are:

• -- payments to the authorities of the financial and banking system, conditioned by the fulfillment of financial obligations. These include; tax payments to the budget, payment of interest to banks for using loans, repayment of previously taken loans, insurance payments, etc.;
• -- investment of own funds in capital costs (reinvestment) associated with the expansion of production and its technical renewal, transition to new advanced technologies, use of know-how, etc.;
• -- investment of financial resources in securities purchased on the market: shares and bonds of other companies, usually closely associated with cooperative supplies with a given enterprise, in government loans, etc.;
• -- direction of financial resources for the formation of monetary funds of an incentive and social nature;
• -- use of financial resources for charitable purposes, sponsorship, etc.

With the transition to market economic principles, not only the role of enterprise managers and members of the boards of joint-stock companies, but also financial services, which played a secondary role in the conditions of administrative-command management methods, increases unusually. Finding financial sources for the development of an enterprise, directions for the most effective investment of financial resources, transactions with securities and other issues of financial management become fundamental for the financial services of enterprises in a market economy. The essence of financial management lies in such an organization of financial management on the part of the relevant services, which allows you to attract additional financial resources on the most favorable terms, invest them with the greatest effect, and carry out profitable transactions in the financial market, buying and reselling securities. Achieving success in the field of financial management largely depends on the behavior of financial services employees, in which initiative, the search for unconventional solutions, the scale of operations and justified risk, and business acumen become the main ones.

When mobilizing funds from other owners to cover the costs of their enterprise, financial service employees must first of all have a clear understanding of the goals of investing resources and, in accordance with them, make recommendations on forms of raising funds. To cover short-term and medium-term needs for funds, it is advisable to use loans from credit institutions. When making large capital investments in the reconstruction and expansion of an enterprise, you can use the issue of securities. However, such a recommendation can only be given if financiers have thoroughly studied the financial market, analyzed the demand for different types of securities, taken into account possible changes in market conditions and, having weighed all this, are nevertheless confident in the relatively quick and profitable sale of their securities enterprises.

Planning the amount of current financial needs takes into account the following:

• - the real value of the enterprise’s needs in the past period;
• - changes in needs in the coming period, based on market conditions and the objectives of the enterprise;
• - the risk of an increase or decrease in the need for financial resources in the coming period.

Financial relations that arise in the process of formation and use of the financial resources of an enterprise are formed in the process of circulation of its funds, which is mediated by cash flows for various types of its activities.

• 1. Current activities. The movement of funds associated with the receipt of proceeds from the sale of products, goods, works, services and inventories of production and material resources, receipt of advances, rent, payment of supplier bills, payment of wages, settlements with the budget and social funds, receipt and return short-term loans and borrowings for purposes related to current activities, payment of interest on these loans and borrowings, payment and receipt of penalties and pledges.
• 2. Investment activities. Movement of funds associated with capital investments in connection with the acquisition of land, buildings and other real estate, equipment, intangible assets and other non-current assets and their sale; with long-term financial investments in other organizations, issuing bonds and other long-term securities.
• 3. Financial activities. The movement of funds associated with the formation and use of authorized capital, additional capital, distribution and use of profits, long-term and short-term financial investments, sale of corporate securities, obtaining long-term and short-term credits, borrowings, repayment of receivables and payables in non-traditional ways (changes of persons in obligation, novation, compensation), receipt and use of targeted financing and proceeds, as well as settlements for transactions related to agreements of trust management of property, simple partnership (joint activity).

Thus, the entire set of financial relations of enterprises associated with the formation and use of financial resources can be conditionally presented in the form of three cash flows, and have clear cost characteristics. Cash flows affect the entire structure of the enterprise's balance sheet, its assets and liabilities, and its financial stability.

The “outflow” of part of an enterprise’s cash flow in the form of payments to budgets and extra-budgetary funds means the non-equivalent withdrawal of these funds from its individual circulation. These funds go through a redistribution phase and take the form not of cash, but of financial flow.

Financial flow is a redistributed part of cash flows (primary income of enterprises) accumulated in the budget or in extra-budgetary (centralized) funds, i.e. in the field of public finance. A synonym for the concept of “financial flow” is “financial funds”. This is part of the cash flows that have gone through the process of accumulation in various centralized state funds (in the budgetary system and in extra-budgetary funds), directed towards targeted financing. (3, pp. 14 - 17)

Part of the proceeds from the sale of products should be used to reimburse material costs and pay for labor. But already from the revenue received, the enterprise accumulates funds (funds) in the form of depreciation charges for fixed assets and intangible assets. They are intended for the acquisition of new necessary property, but before its acquisition they are in the circulation of the enterprise.

Using the proceeds received from the sale of products, cash reserves are formed for future expenses and payments, the composition of which is regulated by the relevant regulatory document in the field of accounting and state accounting policy. A repair fund may also be formed, designed to evenly distribute the costs of particularly complex types of repairs of fixed production assets in the cost of production.

The process of distribution is accompanied by a process of redistribution. When paying wages, income tax and contributions to the pension fund are withheld, and funds are transferred to extra-budgetary funds.

The total amount of paid revenue of the enterprise includes income in the form of profit. The total amount of profit does not immediately participate in monetary circulation, since a certain part of it is redistributed in the form of tax payments to the budget system. As a result, retained earnings (from previous years and the reporting year) remain in the enterprise’s turnover, representing the amount of net profit, i.e. the difference between the final financial result (gross profit) and the amount of profit used to pay taxes and other payments to the budget.

Then the net profit can be distributed into an accumulation fund, which serves as a source of financing capital investments, and a consumption fund, intended to satisfy various social needs and material incentives. Both of these funds are formed in accordance with the constituent documents, decisions of the general meeting of shareholders or the accounting policies of the enterprise.

A reserve fund can also be formed from net profit. It is formed in accordance with current legislation, constituent documents or accounting policies of the enterprise.

In the process of redistribution, a number of monetary sources are formed that have the nature of funds:

• - authorized capital (share capital, authorized fund) - is formed when an enterprise is created at the expense of contributions from the founders (participants) or at the expense of property assigned to the enterprise by the owner. The procedure for its formation (minimum amount, terms of contributions, additional attraction of funds) is regulated by law. The authorized capital is intended for the advance of funds into non-current and current assets.
• - targeted financing and revenue from the budget - in cases provided for by relevant laws.
• - targeted financing and revenues from industry and intersectoral extra-budgetary funds and from other enterprises and individuals for the implementation of targeted activities.

Cash sources in the form of share premiums, gratuitous receipts that make up the monetary part of additional capital, and reserves for future expenses and payments can participate in the circulation of funds of an enterprise.

In the process of carrying out economic activities, other monetary sources (raised capital) are also involved in the individual circulation of funds of the enterprise in the form of long-term and short-term loans and other loans, and in the form of accounts payable. (3, pp. 18 - 19)

The essence of finance is expressed in its functions. Finance in general performs two main functions: distribution and control. In addition, the part of finance that functions in the sphere of material production (for example, enterprise finance), and also participates in the process of creating cash income and savings, performs not only distribution and control functions, but also provides the function of generating cash income.

Distribution function of finance

Objects The actions of the distribution function of finance are the value of the gross social product (in its monetary form), as well as part of the national wealth (which has taken monetary form). It is with the help of this function that the following is carried out:

• o primary distribution of newly created value and the formation on its basis of primary income (profit, social insurance charges);
• o distribution of part of the compensation fund (in the form of a depreciation fund);

odistribution of part of the national wealth (when distributing previously created value, replenishing damage from natural disasters).

Subjects The distributive function of finance are legal entities and individuals who are participants in the reproduction process (state, enterprises, organizations, institutions, citizens), at whose disposal funds for special purposes are formed.

The distribution process, carried out with the help of finance, proceeds from the primary distribution of the value of the social product to redistribution. The distribution process is carried out in all spheres of social life (in material production, spheres of circulation and consumption) and at all levels of economic management: federal, territorial (at the level of constituent entities of the Russian Federation), local. In addition, financial distribution is characterized by multi-stage nature, giving rise to different types of distribution - intra-farm, intra-industry, inter-industry, inter-territorial.

Control function of finance closely related to distribution. Among the huge variety of financial relations, there is not a single one that is not associated with control over the formation and use of monetary funds. At the same time, there are no financial relations that would only have a control function.

With the help of finance, the state distributes the social product not only in physical form, but also in value. In this regard, it becomes possible and necessary to control the provision of cost and natural-material proportions in the process of expanded reproduction.

The control function of finance is inherent in the entire system of relations associated with both the movement of value and the change of its forms. The control function of finance is carried out at all stages of the creation, distribution and use of the social product and national income; it is manifested in all the diversity of economic activities of enterprises. Control is carried out over production and non-production costs, over the compliance of these costs with income, over the formation and use of fixed assets and working capital. It operates at all stages of the circulation of funds, during financing and lending, non-cash payments, in relations with the budget and other parts of the financial system.

Object The control function of finance is the financial performance indicators of enterprises, organizations, and institutions.

Depending on the subjects exercising financial control, a distinction is made between national, departmental, intra-economic, public and independent (audit) financial control.

National (non-departmental) financial control is carried out by public authorities and management. Objects are subject to control regardless of their departmental subordination.

Departmental financial control is carried out by control and audit departments of ministries and departments that carry out inspections of the financial and economic activities of subordinate enterprises and institutions.

On-farm financial control is carried out by the financial services of enterprises and institutions (accounting departments, financial departments). Their functions include checking the production and financial activities of the enterprise itself, as well as its structural divisions.

Public financial control is carried out by public non-governmental organizations and individual individuals on a voluntary basis.

Independent financial control is carried out by audit firms and services. The object of this control is the activities of all economic entities subject to audit.

State financial control in the Russian Federation is exercised by the highest bodies of state power and administration. There is presidential financial control, control of legislative authorities and local self-government (at the federal level - control of the State Duma and the Federation Council), executive authorities, financial and credit authorities.

The principle of separation of powers, enshrined in the Constitution of the Russian Federation and in the constitutions (Charters) of the constituent entities of the Russian Federation, provides for control over the financial activities of executive authorities by the president and representative (legislative) authorities. Such control is carried out when considering and approving projects of the federal and lower budgets, state and local extra-budgetary funds, as well as when approving reports on their implementation.

To carry out financial control on the part of representative bodies, special structures have been created: committees and commissions of the Federation Council and the State Duma, the Accounts Chamber of the Russian Federation.

Accounts Chamber of the Russian Federation has a special place in the system of financial control by representative authorities. This is a permanent body of state financial control, independent from the Government of the Russian Federation, endowed with broad powers. The scope of authority of the Accounts Chamber is control over federal property and federal funds. All legal entities - state bodies and institutions, including state extra-budgetary funds and the Bank of Russia - are subject to control; local governments, commercial banks, insurance companies and other commercial funds and non-governmental non-profit organizations - in part related to the receipt, transfer or use of funds from the federal budget and extra-budgetary funds, the use of federal property, as well as the presence of tax, customs and other taxes benefits provided by federal authorities.

The Accounts Chamber solves the following tasks: organizing control over the execution of the federal budget and extra-budgetary funds; preparation of proposals to eliminate detected violations and improve the budget process; assessment of the effectiveness and expediency of spending public funds, including those provided on a repayable basis, and the use of federal property; determining the degree of validity of articles of draft federal budgets and extra-budgetary funds; financial expertise, i.e. assessment of the financial consequences of the adoption of federal laws for the budget; control over the receipt and movement of budget funds in bank accounts; regularly providing the Federation Council and the State Duma with information on the progress of execution of the federal budget; control over the receipt of funds into the federal budget from the privatization of state property, sale and management of it.

The Accounts Chamber is also obliged to monitor the state of the state internal and external debt of the Russian Federation, the activities of the Bank of Russia in servicing public debt, the effectiveness of the use of foreign loans and borrowings received by the Government of the Russian Federation, as well as the provision of funds by Russia in the form of loans and on a gratuitous basis to foreign states and international organizations.

At the regional level, financial control is carried out both by regional authorities and by specially created control bodies. An example of such a controlling organization is the activities of the Chamber of Control and Accounts of the Moscow City Duma.

The activities of the Accounts Chamber are public by law, and their results must be covered in the media.

Presidential control finances are carried out in accordance with the Constitution of the Russian Federation by issuing decrees on financial issues and signing federal laws; appointment and dismissal of the Minister of Finance of the Russian Federation; submitting a candidate to the State Duma for appointment to the position of Chairman of the Bank of Russia.

Performs certain financial control functions Control Department of the President of the Russian Federation. As a structural unit of the Presidential Administration, it reports directly to the president, but interacts with all executive authorities. Among its functions are control over the activities of control and supervision bodies under federal executive authorities, divisions of the Presidential Administration, executive authorities of constituent entities of the Russian Federation; consideration of complaints and appeals from citizens and legal entities.

Government of the Russian Federation controls the process of development and execution of the federal budget, the implementation of a unified policy in the field of finance, money and credit. It controls and regulates the financial activities of ministries and departments; directs the activities of the special financial authorities under their jurisdiction.

The Ministry of Finance of Russia and its local authorities play an important role in the implementation of financial control.

In the structure of the apparatus of the Ministry of Finance of Russia there is a control and audit department, and in territorial financial bodies there is an office of the chief controller-auditor. The Ministry of Finance of Russia and its bodies exercise control over the production and financial activities of enterprises, the timely provision of financial resources to the federal budget, and their rational use.

A major role in conducting financial control is played by the methodological management of the organization of accounting in the country carried out by the Ministry of Finance of Russia, as well as certification of auditing and licensing of auditing activities.

It should be noted that the control powers of the Russian Ministry of Finance extend to financial resources only at the federal level. The budget legislation of the Russian Federation provides for the financial independence of the constituent entities of the Russian Federation and local governments. They themselves are responsible for the formation and use of their budgets and extra-budgetary funds.

Operational financial control within the Russian Ministry of Finance is carried out by the Control and Audit Department (KRU) and the Federal Treasury.

Control and Audit Department The Ministry of Finance of Russia and its local bodies exercise control over budgetary funds at state enterprises and commercial structures that receive funds from budgets of all levels and extra-budgetary funds; check the financial activities of municipally owned enterprises, as well as the execution of budgets and compliance with financial discipline by local administrations. In addition, KRU bodies conduct inspections on assignments from law enforcement agencies.

Control over the receipt, targeted and economical use of public funds is entrusted to the authorities Federal Treasury Ministry of Finance of Russia. The main tasks of the Treasury are the organization, implementation and control over the execution of the federal budget and state extra-budgetary funds. He is charged with forecasting the volume of government financial resources and their operational management. The Treasury is also engaged in collecting, processing and analyzing information on the state of public finances, and submits reports to the highest legislative and executive bodies of state power on the financial operations of the government and on the state of the budget system.

Federal Treasury authorities have the right to: inspect monetary documents at enterprises, institutions and organizations of any form of ownership, including joint ventures, indisputably recover funds used for other purposes, suspend transactions on accounts, and apply penalties to violators.

State Tax Service of Russia carries out state control over compliance with legislation on taxes and fees, the correctness of their calculation, the completeness and timeliness of payment of taxes and other obligatory payments by taxpayers, bears responsibility for the development and implementation of tax policy in order to ensure timely receipts to budgets of all levels and state extra-budgetary funds in full taxes and other obligatory payments.

Tax inspectorates are bodies of operational financial control. They are endowed with broad rights. Thus, tax inspectorates check monetary documents, accounting books, reports, declarations and other documents related to the calculation and payment of taxes and other obligatory payments to the budget in various ministries and departments, at enterprises, institutions and organizations with different forms of ownership. At the same time, tax inspectorates may require the necessary explanations, certificates and information on issues arising during inspections (with the exception of information constituting a trade secret), and inspect any premises of enterprises (production, warehouse, retail) used to generate income.

In case of failure to submit (or refusal to submit) accounting reports, balance sheets, calculations, declarations and other documents related to the calculation and payment of taxes and other obligatory payments, tax inspectorates have the right to suspend operations of enterprises, institutions and organizations on settlement and other accounts in banks and other financial and credit institutions; seize documents indicating concealment or understatement of profit (income) or other objects of taxation; apply financial sanctions and fines; bring claims in court and arbitration for the liquidation of the enterprise, recognition of transactions as invalid.

If enterprises or citizens disagree with the decision taken, the actions of officials of state tax inspectorates can be appealed in arbitration or in court.

A special role in the implementation of financial control belongs to Bank of Russia. As a government body vested with power, it organizes and controls monetary relations in the country. The Bank of Russia supervises the activities of commercial banks: it verifies compliance by commercial banks with banking legislation and banking standards established by the Bank of Russia. When establishing facts of violations or when banks provide incomplete or unreliable information, the Bank of Russia, depending on the type of violation, has the right to resort to certain methods of enforcement: a fine, demands for financial recovery, reorganization, replacement of the management of a commercial bank; application of more stringent standards; ban on certain operations and opening; the appointment of a temporary administration of the bank, and, at least, the revocation of the license and liquidation of the bank.

Since the late 1980s, i.e. after the emergence of various commercial structures (commercial banks, insurance companies, corporations, etc.) in the Russian Federation, in order to protect citizens as potential investors and depositors, a new type of financial control appeared - audit.

The main objectives of audit control are to establish the reliability of accounting and financial statements and the compliance of financial and business transactions with the regulations in force in the Russian Federation; verification of payment and settlement documentation, tax returns and other financial obligations and requirements of the audited economic entities. Audit services can also provide other services: setting up and maintaining accounting records; preparation of financial statements and income statements; analysis and forecasting of financial and economic activities; training employees of accounting services and consulting in matters of financial and economic legislation; elaboration of recommendations received as a result of audits.

An audit can be mandatory or proactive. If an initiative inspection is carried out by decision of the economic entity itself, then a mandatory inspection is carried out in accordance with the established procedure in all cases provided for by the Government of the Russian Federation. All banks, insurance organizations, stock exchanges, extra-budgetary funds created through mandatory contributions, charitable foundations, all enterprises created in the form of an open joint-stock company, regardless of the number of shareholders and the size of the authorized capital, as well as enterprises with fund share owned by foreign investors.

In addition, enterprises (with the exception of state and municipal ones) whose individual financial indicators exceed the criteria established by the Government of the Russian Federation are subject to annual audit control. A mandatory audit can also be carried out on behalf of government bodies - the prosecutor's office, the treasury, and the tax service. Evasion of an economic entity from conducting a mandatory audit or obstruction of its implementation entails the collection of a fine by court decision.

Audit control is independent non-departmental financial control. It can be carried out both by individual individuals who have passed state certification and registered as entrepreneur-auditors, and by audit firms, including foreign ones.

The services of audit organizations are paid. As a rule, the relationship of the auditor (audit firm) with clients is formalized by a contract for the provision of services and paid at negotiated prices. If an audit is carried out on the basis of instructions from judicial authorities in the presence of a criminal case accepted for proceedings or a case under the jurisdiction of an arbitration court, then payment for audit services is made at the expense of the audited organization at tariffs approved by the Government of the Russian Federation, and in case of financial insolvency - at the expense of budget with subsequent compensation from the property of the inspected organization declared bankrupt by the court.

Depending on the goals and objectives, there are two types of audit: external and internal.

External audit. The main objectives of external audits are: checking the reliability of financial and accounting statements; examination of financial and economic condition; assessment of solvency, as well as development of recommendations for business activities, financial strategy, and tax planning.

Internal audit carry out internal control services of companies, branches, subsidiaries. It is aimed at conducting inspections on behalf of management. The specific goals of the internal audit services are determined depending on the requirements of the enterprise management. Internal audit must be carried out continuously in order to actively and timely influence the course of commercial and financial transactions and eliminate deficiencies in work. The audit must cover all areas of economic activity, be substantive, strictly targeted, and be effective.

According to the timing of implementation, financial control is divided into preliminary, current and subsequent.

Preliminary financial control carried out at the stage of consideration and approval of draft budgets, financial plans of enterprises, estimates of budgetary organizations, i.e. carried out during the planning process. It precedes the implementation of budget expenditures and business operations and is designed to prevent irrational expenditure of material, labor and financial resources and thereby prevent direct or indirect damage to the state and enterprises. The purpose of preliminary control is to prevent inappropriate expenditure of material resources and funds.

Current financial control carried out in the process of performing financial transactions, during the execution of budgets and financial and economic activities of enterprises. The goal is to maintain the correctness and legality of expenses made, income received, the completeness of the transfer of funds from and to the budget, as well as extra-budgetary funds, and the effective use of bank loans. Control is carried out by financial services on a daily basis in order to promptly detect and eliminate errors. Responsiveness and flexibility are of paramount importance here.

Subsequent financial control carried out in the form of checks and audits of the correctness, legality, and expediency of financial transactions already carried out. Its goal is to develop a system of measures aimed at eliminating identified shortcomings in the expenditure of public funds, own and borrowed funds of enterprises, and suppressing further violations of financial discipline.

The financial control mechanism is constantly evolving, which contributes to the improvement of finances and the improvement of financial relations in the country.